Date: 1981-07-22
Speaker: ROBERT C. BYRD (democrat)
Chamber: S

Mr. President. I was amazed by President Reagans letter of July 18 to me and other congressional leaders. I am dismayed that the President of the United States would accuse Members of Congress of $.opportunistic political maneuvering. cynically designed to play on the fears of many Americans 0 0 ." I regret that legitimate and strongly held policy disagreements could be characterized In such a political and partisan fashion. Five months ago. when the President came before the Congress to argue the merits of his budget plan. he said that no budget savings would be made by cutting the social security retirement program. He said: The full retirement benefits of tho maore than 31 million social Security recipients will be continued along with an annual costofliving Increase. These benefits were to be preserved as part of the Nations safety net. The checks for some current beneficiaries will soon be cut substantially. not by any piece of legislation dealing specifically with social security. but through the budget process. and as a result of administration budget proposals. The depth of benefit cuts in the administrations social security reform plan goes well beyond what might be necessary to insure adequate future financing of retirement benefits. The plan calls for $88 billion in cuts over the next 5 years which grow Into a 23percent cut in total benefit protection. and more than a 40percent slash in retirement income for people who must retire at age 02. After examining the plan. one can only reasonably conclude that It is part of a larger Federal budgetcutting strategy. According to the adinistrations own economic forecasts. upon which their budget plan and tax cut are premised. about $80 billion of the proposed savings would not be needed to pay for benefits during the next 5 years. The administrations program is clearly structured In a suspicious fashion. The administration has steadfastly defended a 3year tax cut on the grounds of very optimistic assumptions regarding the Nations future economic performance. In sharp contradiction. it has used extremely pessimistic econominc assumptions about our future to evaluate the economic health of the social security system. The shortterm cash flow Problems of the retirement trust fund are problems of the economyhigh interest rates. unemployment. and lowgrowthrather than of demography. The administration has painted a bleak economic future as it basis for Justifying immediate. major. and Permanent reductions in social security protection. The administrations plan is cruel and Inhumane. it is unfair and it is unnecessary. The nonpartisan. professional Congressional Budget Office has predicted that the shortterm cash flow difficulties of the retirement trust fund can be solved by a simple. noncontroversial bookkeeping change: Interfund borrowing among the social security systems three separate trust funds. Health and Human Services Secretary Schweiker recently supported such an accounting change In testimony before the Senate Finance Committee. The Congressional Budget Office has supPorted this shortrange solution. based on economic conditions more pessimistic than the administrations own forecasts. and assuming the benefit cuts which will soon be enacted as part of the Presidents reconciliation bill. Last week. when Senate Democrats. under the leadership of Senator MOYNiRAN. attempted to resolve the shortterm financing problems of the social security retirement trust iuind through interfund borrowing. we were defeated on a party line vote. The purpose of our action was to find a solution for the Immediate. 5year financing problems of the social security retirement fund. so that any other proPosed changes in the social security benefit structure might be considered in a calm. realistic. and moderate mannerwith time to examine the Implications and reasons for such actions. The purpose of our action was also to resolve the crisis of confidence. among the American people. regarding the fiscal integrity of the social security system. We welcomed Republican votes in attempting to resolve this crisis. Unfortunately. only one Republican voted with us. In his letter to me. the President said that: The highest priority of my administration Is restoring the Integrity or the social security system. This claim rings hollow when measured against his proposal to slash immediately the benefits of millions of Americans who were planning to retire at age 62 next year. The integrity of the social security system is based on confidence and predictability. This administration has Intentionally undermined confidence In the system. Its hastily conceived cuts have seriously eroded the systems predictability. Mr. President. I shall read the letter of the President addressed to me Into the RECORD. Then I shall read my response to the President into the RECORD. The letter from the President Is dated July 18. 198 1: DEAR SENATOR BYRD: The highest priority of my Administratioa Is restoring the Integrity of the Social Security System. Those 35million Americans who depend on Social Security expect and are entitled to prompt bipartisan action to resolve the current flnancial problem. At the same time. I deplore the opportunistic political maneuvering. cynically designed to play on the fears of many Americans. that some In the Congress are Initiating at this time. It Is true. Mr. President. as the President suggests in his letter. that the American people are frightened and concerned. Several thousands of our citizens expressed that fear and concern on yesterday when they braved the 94degree heat and traveled long distances to petition their Congress and their Government on the west front of the Capitol in the hope of salvaging their dignity and their livelihood. They came because millions of them are suddenly faced with the real possibility. of losing their minimum monthly benefits. They came because they are confronted with living out their retirement years in poverty. Of course. they can always turn to welfare. That Is the cynicism with which this administration apparently views the matter. They came because. for those who are retiring at age 62 because of ill health or other factors. the administration plans to reduce their benefits by 40 percent40 percent. Mr. President. at a time when Inflation makes affording the bare essentials a tough proposition. The President writes of "opportunistic political maneuvering. cynically designed to play on the fears of many Americans." Mr. President. those several thousands of our senior citizens who gathered here yesterday on the Capitol lawn came because they are frightened. their "fears" created by the White House and Mr. David Stockman. They came because David Stockman has told them that the Social Security Fund will be bankrupt in November of Yes. they are frightened. They are frightened because the administration has deliberately whipped up anxiety. deliberately exaggerated the direness of the financial situation of the Social Security Fund so that the administrations harsh and unfair proposals will be accepted. The letter continues: These efforts appear designed to exploit an Issue rather than find a solution to the urgent Social Security problem. They would also have the unfortunate effect of disruptIng the budget conference and reversing the actions of a majority of both Houses of the Congress. Such a result would jeopardize our economic recovery program so vital to the wellbeing of the Nation. In order to tell the American people the facts. and to let them know that I shall fight to preserve the Social Security System and protect their benefits. I will ask for time on television to address the Nation as soon as possible. During this address. I will call on the Congress to lay aside partisan politics. and join me in a constructive effort to put Social Security on a permanently sound financial basis as soon as the 97th Congress returns In September. Sinceely. RONALD REAGAN. Mr. President. I responded to the President on yesterday as follows: DEAR MR. PRESIDENT: This will acknowledge receipt of your July 18 letter. expressing your concern for the 35 million Americans who depend on Social Security for their livelihood. I regret that you suggest In your letter that any deviation from the Administrations proposals on Social Security Is "opportunistic political maneuvering. cynically designed to play on the fears of many Americans.. . Your Administrations proposed Social Security cuts are a breach of faith with the American people. Gloom and doom predictions for the financial solvency of the system are severe distortions of the problems faced by the Social Security trust .funds. Since the Inception of the Social Security program. no Administration has done more to shake the confidence of the American people In the security of the Social Security system. No Administration has ever before attempted to balance the budget by reducing social Security benefits. The "facts" are that the draconian solu.tions prooosed by the Administration simply are not necessary to keep the system solvent In the short run. On July 15. Senator Moynihan offered an amendment which would have solved the foreseeable shortrun problems of the system. and allowed for a dis.passionate analysis of the longterm problems which the system may face In the next -century. But the amendment which provided for borrowing among the three Social Security trust funds was defeated on July 10 by a partyline vote. We did not wish to make this a partisan Issue. We have welcomed Republican votes in support of our efforts. But partisan politics. directed from the White House and the OMB. have time and again resulted In a partisan vote on the Social Security Issue. I would respectfully suggest that your Administrations rhetoric is responsible. for much of the fear and panic being experienced by the elderly. In recent testimony. David Stockman. Dire~ctor of the office of Management and Budget. stated that "The most devastating bankruptcy In history will occur on or about November 3. 1982." Such fear tactics certainly do not contribute to the calm and reasoned atmosphere needed to fashion a bipartisan solution to the problems of the syst.m. I would also suggest. Mr. President. that our elderly citizens were misled by campaign promises to leave the Social Security retirement benefits unscathed by budget cuts. The frustration. anger. and fear we are witnessing now from our senior citizens is a result of those broken promises. and of the exaggeration of the systems problems In order to stampede the American people Into support for unfair and Illreasoned cuts. Balancing the budget Is something that we must do. but not on the backs of Social Security beneficiaries.* Democrats stand ready to work for a resolution of the longrange problems of the Social Security system. while prote cting the financial security of our elderly in the short run. I believe that such a solution can be found. and that the American people expect us to find It. Sincerely.