Congressional Hearing On Social Security Finances

From the Social Security Subcommittee of the House Ways and Means Committee:

U.S. Congressman Sam Johnson (R-TX), Chairman of the House Committee on Ways and Means Subcommittee on Social Security announced today that the Subcommittee will hold a hearing on Social Security’s current revenue streams, proposed changes to those structures and the impact they would have on the program, beneficiaries, workers and the economy.  The hearing will take place on Thursday, June 23, 2011 in B-318 Rayburn House Office Building, beginning at 1:30 p.m. ...

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced the OASDI payroll tax paid by the worker by 2 percentage points in calendar year 2011.  The law also required the Secretary of the Treasury to make general revenue transfers to replace revenues temporarily diverted from the trust funds.   ...

The Social Security actuaries have estimated a number of revenue generating proposals, including those proposed by the President’s Fiscal Commission which would require all newly hired state and local workers to participate in Social Security and increase the amount of earnings subject to Social Security payroll taxes by increasing the taxable wage base.

In announcing the hearing, Chairman Sam Johnson (R-TX) stated, “When Social Security first began, the payroll tax was only 2 percent – evenly split between employers and employees -- on the first $3,000 in wages.  Today the payroll tax is 12.4% on the first $106,800 in wages.  Yet despite the tax increases, Social Security is in trouble.  Clearly tax hikes have not been a panacea.  This hearing will provide an opportunity to learn more about Social Security revenues, options for change and their impacts.”