Congresswoman Bachmann believes that the current social security system is not sustainable and that the liabilities that the US has obligated itself to are not realistic. In a 2010 speech, she stated that everyone already drawing funds the social security system or about to enter the system (55-60 years old) would be able to draw benefits as expected, but those younger than that would be allowed to remove themselves from the system.
In September of 2009, Congresswoman Bachmann stated that the current system of social security was not sustainable and that by 2035 social security spending would reach 17 percent of GDP. In February of 2010, Congresswoman Bachmann again noted that long term projections for unfunded mandates such as social security, Medicare, and Medicaid would eventually bankrupt the system if not overhauled.
One solution that Congresswoman Bachmann has proposed is the Truth in Accounting Act. This legislation would require the President to consider the long-term shortfalls from unfunded mandates when he proposes his budget. And, it would require both the GAO (Government Accountability Office) and the U.S. Treasury to report this information to the Congress so that the numbers can be used when we’re finalizing the annual budget.
During her 2012 Presdential campaign, Congresswoman Bachmann continued to assert that the social security, Medicare, and Medicaid systems must be overhauled. In an O'Reilly Factor appearance, she supported means testing for Medicare and social security for anyone not already in the system. Congresswoman Bachmann stated that her plan would not alter these programs for anyone already in the system or near the age of entering the system. She passively supported raising the retirement age of social security, but would not commit to an increased age.
Social Security is Broke
In September of 2009, Congresswoman Bachmann wrote an op-ed discussing the state of social security. She notes that the social security system is fiscally insolvent.
Social Security is Broke 9/8/2009 | Email Michele Bachmann | All Posts By Blogger
While we debate the pros and cons of a trillion-dollar-plus health care overhaul here in the House, it's important to come to terms with the rising financial commitment already facing our nation and future generations.
For instance, according to a report just released by the non-partisan Congressional Budget Office (CBO), Social Security is broke.
The CBO now projects that Social Security’s costs will exceed tax income in 2010 (next year!) and 2011, with cash surpluses returning over the 2012-2015 period and becoming negative again beginning in 2016 and later. In their March 2009 estimates, the CBO projected that the cash surplus would be positive through 2016. Keep in mind that these projections are based on what many economists of all stripes believe are far-too-rosy White House budget numbers. It's a very real possibility that a positive cash surplus may not occur at all.
What's worse is what the CBO report reveals about our nation's long-term budget outlook:
"Over the long term (beyond the 10-year baseline projection period), the budget remains on an unsustainable path. Unless changes are made to current policies, the nation will face a growing demand for budgetary resources caused by rising health care costs and the aging of the population. Continued large deficits and the resulting increases in federal debt over time would reduce long-term economic growth by lowering national saving and investment relative to what would otherwise occur, causing productivity and wage growth to gradually slow.
"Last year, outlays for Social Security, Medicare, and Medicaid combined accounted for about 9 percent of GDP. Outstripping the growth of GDP, spending for those programs is expected to rise rapidly over the next 10 years, totaling nearly 12 percent of GDP by 2019. Under long term projections recently published by CBO, such spending would continue to rise under current laws and policies and could total 17 percent of GDP by 2035.
If outlays for those programs reached that level, federal spending would be well above its historical percentage of GDP. Unless revenues were increased correspondingly, annual deficits would climb and federal debt would grow significantly, posing a threat to the economy. Alternatively, if taxes were raised to finance the rising spending, tax rates would have to reach levels never seen in the United States. Some combination of significant changes in benefit programs and other spending and tax policies will be necessary in order to attain long-term fiscal balance."
These are very real numbers we're talking about, and it's about time Washington account for its finances rather than pushing them off to our children and grandchildren through continued borrowing and higher taxes.
Constitutional Coalition Speech
In February of 2010, Congresswoman Bachmann spoke at the Constitutional Coalition rally in St. Louis. She stated that those above 55 could be kept within the social security system and paid their expected rates, but that the system would be ended for those below that age. She stated that the next generation could be weaned off of the system.
Is the country too big to fail? No, the country can fail. We can, we’re not invincible. And we’re so close now to being at that point because the thing is, as Glenn Beck said last night, it is true. The $107 trillion that he put on the board. We’re $14 trillion in debt, but that doesn’t include the unfunded massive liabilities. That’s $107 trillion, and that’s for Social Security and Medicare and all the rest. You add up all those unfunded net liabilities, and all the traps that could go wrong we’re on the hook for, and what it means is what we have to do is a reorganization of all of that, Social Security and all. We have to do it simply because we can’t let the contract remain as they are because the older people are going to lose. So, what you have to do, is keep faith with the people that are already in the system, that don’t have any other options, we have to keep faith with them. But basically what we have to do is wean everybody else off. And wean everybody off because we have to take those unfunded net liabilities off our bank sheet, we can’t do it. So we just have to be straight with people. So basically, whoever our nominee is, is going to have to have a Glenn Beck chalkboard and explain to everybody this is the way it is.
Open Up the Books
In May of 2009, Congresswoman Bachmann wrote an op-ed discussing her desire to see more transparency in the federal government. In that article, she notes the solvency issues within social security.
Open Up the Government Books 5/13/2009 | Email Michele Bachmann | All Posts By Blogger
Yesterday, the Medicare and Social Security Trustees issued a new report that laid out unequivocally that our current Medicare and Social Security programs are on a path for financial implosion and are in need of serious reform.
In fact, the Medicare insolvency date has moved up to 2017. And, that doesn’t include the impact of the so-called “stimulus” bill, which could accelerate insolvency by about 6 months.
And, we're facing a strain on Social Security like never before, with nearly 80 million retiring Baby Boomers tapping into the funds soon we'll be spending more to pay benefits than what the system receives in payroll taxes. Yet, we continue to carry on with the status quo, every now and then saying that we need to reform it, but not actually doing anything about it.
It's crucial that Americans know full well what the government is doing with the government books. You have to be able to hold your lawmakers accountable for the way they spend your money. I've introduced the Truth In Accounting Act to make government finances truly transparent and open. Not only would financial commitments be crystal clear to Congress, but also to the taxpayers.
Currently, when Congress and the President prepare budget proposals and pass spending bills, they have the luxury of ignoring shortfalls year after year. They prepare, present, and approve budgets which project these estimates over the short-term – usually five or ten years. And, there are a lot of things that can be done on paper to paper over the long-term shortfalls.
My Truth in Accounting Act would require the President to consider these long-term shortfalls when he proposes his budget. And, it would require both the GAO (Government Accountability Office) and the U.S. Treasury to report this information to the Congress so that the numbers can be used when we’re finalizing the annual budget.
Furthermore, my legislation would require that the report be translated into easily comprehensible terms so that nothing could be hidden by complex jargon. The government’s fiscal imbalance would be presented in the whole, and as distributed per person, per worker, and per household.
We can’t fix our current budget shortfalls if we continue to dig ourselves deeper in debt, and we can’t solve our Social Security conundrum by simply putting a patch on it year after year. It's time to take an honest account of our finances instead of mortgaging our debt to future generations of Americans.
Bill O'Reilly Appearance
On August 8, 2011 Congresswoman Bachmann appeared on the O'Reilly factor and spoke about entitlement reform. She states that she supports means testing for Medicare and social security. She seems to support raising the retirement age, but refuses to set an age.
Congresswoman Bachmann: We would make sure that all senior citizens would know they aren't going to be scared any more. Their current benefits, both on Medicare and Social Security, will be paid. However, from there, with all members of Congress, I would let them know that the time for entitlement reform is now. Not in the future, we have to have entitlement reform now.
TEA Party Debate
Congresswoman Bachmann participated in the TEA Party debate in Tampa Bay, Florida in September of 2011. When asked about social security, she stated that she would ensure that all seniors would receive full benefits.
QUESTION: (OFF-MIKE) Tea Party, Jacksonville, Florida. My question: How will you convince senior citizens that Social Security and Medicare need to be changed and get their vote?
BLITZER: Good question. Let me begin with Michele Bachmann. Congresswoman, how do you do that? How do you go ahead and change, reform Social Security, Medicare, while at the same time getting votes?
BACHMANN: Well, one thing that we need to let senior citizens know is, for those who are currently on the Social Security system, the United States government made a promise to senior citizens, and we have to keep that promise to them.
But we also need to know that for those who are not yet on the system, the system simply has to be reformed in order for it to work. The same goes with Medicare. We know that President Obama stole over $500 billion out of Medicare to switch it over to Obamacare. We also know that Medicare hospital trust fund will be bankrupt within nine years. These are programs that need to be saved to serve people, and in their current form, they can't.
So we need to have someone who understands these programs, who -- who understands the solutions to these programs. I'm a person that's had feet in the private sector and a foot in the federal government. I've been there long enough to know the problems, but not long enough to become a part of the system. I know what to do, and I have the core of conviction to be able to make the changes that senior citizens can count on.
Michigan Economic Debate
On November 10, 2011 Congresswoman Bachmann participated in the Michigan economic debate. She discussed her social security plan.
HARWOOD: Does any candidate disagree with the Speaker and Governor Romney and oppose the extension of the payroll tax cut?
(UNKNOWN): Yes.
HARWOOD: You oppose it?
BACHMANN: I do. I opposed it when it was first proposed, because I knew that it would blow a hole of $111 billion in the Social Security trust fund.
President Obama clearly did this for political reasons. That's why he did it. And so I had made that warning then, because we actually have already run Social Security in the red. We aren't just about to, we already have, six years ahead of time.
Now, consider the context. We have baby boomers in their peak earning years. This is when money should be flooding into the Social Security trust fund. Instead, we're already in the red.
When we talked this evening about how much trouble we are in with spending, we are in a tremendous amount of trouble with spending. Just consider we pay a lot of taxes in this country, $2.2 trillion is what we send into Washington. The problem is, we spent at the government level $3.7 trillion. Your started out tonight talking --
