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    "label": "Older Americans Issues - GRF Statements - Social Security",
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    "id": "1675574",
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    "title": "Older Americans Issues - GRF Statements - Social Security",
    "citationUrl": "https://catalog.archives.gov/id/1675574",
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        "President Ford Committee Records",
        "Older Americans Desk Subject Files"
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    "subjects": [
        "Presidential campaign, 1976",
        "Speeches, addresses, etc.",
        "Old age",
        "Social security"
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    "ocrText": "The original documents are located in Box F54, folder \"Older Americans Issues - GRF\nStatements - Social Security\" of the President Ford Committee Campaign Records at the\nGerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the\nUnited States of America her copyrights in all of her husband's unpublished writings in National\nArchives collections. Works prepared by U.S. Government employees as part of their official\nduties are in the public domain. The copyrights to materials written by other individuals or\norganizations are presumed to remain with them. If you think any of the information displayed\nin the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential\nLibrary.\nOLDER AMERICANS\nSOCIAL SECURITY\nOur Federal Social Security system for people who\nhave worked hard and contributed to it all their lives 1s.\na vital part of our economic system. Its value is no\nlonger debatable. In my budget for fiscal year 1977 I am\nrecommending that the full cost of living increase in\nSocial Security benefits be paid during the coming year.\nBut I am concerned about the integrity of our Social\nSecurity Trust Fund that enables people -- those retired\nand those still working who will retire -- to count on\nthis source of retirement income. Younger workers watch\ntheir deductions rise and wonder if they will be adequately\nprotected in the future.\nWe must meet this challenge head-on.\nSimple arithmetic warns all of UB that the Social\nSecurity Trust Fund is headed for trouble. Unless we act\nsoon to make sure the fund takes in as much as 1t, pays out,\nthere will be no security for old or young.\nI must therefore recommend a 3/10 of one percent\nincrease in both employer and employee Social Security\ntaxes effective January 1, 1977. This will cost each\ncovered employee less than one extra dollar a week and will\nensure the integrity of the trust fund.\nPresident Gerald R. Ford\nState of the Union Address\nJanuary 19, 1976\nGERALD\n&\nOLDER AMERICANS\nSOCIAL SECURITY\nOur Federal Social Security system for people who\nhave worked hard and contributed to it all their lives is.\na vital part of our economic system. Its value is no\nlonger debatable. In my budget for fiscal year 1977 I am\nrecommending that the full cost of living increase in\nSocial Security benefits be paid during the coming year.\nBut I am concerned about the integrity of our Social\nSecurity Trust Fund that enables people - those retired\nand those still working who will retire - to count on\nthis source of retirement income. Younger workers watch\ntheir deductions rise and wonder if they will be adequately\nprotected in the future.\nWe must meet this challenge head-on.\nSimple arithmetic warns all of us that the Social\nSecurity Trust Fund is headed for trouble. Unless we act\nsoon to make sure the fund takes in as much as it pays out,\nthere will be no security for old or young.\nI must therefore recommend a 3/10 of one percent\nincrease in both employer and employee Social Security\ntaxes effective January 1, 1977. This will cost each\ncovered employee less than one extra dollar a week and will\nensure the integrity of the trust fund.\nPresident Gerald R. Ford\nState of the Union Address\nJanuary 19, 1976\nTHO to GERALD\nLIBRARY\nOLDER AMERICANS\nSOCIAL SECURITY\n\"In the budget I have recommended for fiscal 1977,\nthere is no cap on the cost of living increases\non Social Security. Whatever the formula provides,\nthere will be an increase under the law for all\nbeneficiaries of Social Security. I recommend it,\nand I strongly favor it.\"\nPresident Gerald R. Ford\nThe Bahia Mar Hotel\nFort Lauderdale, Florida\nFebruary 13, 1976\nGERALD\nOLDER AMERICANS\nSOCIAL SECURITY\nTHE PRESIDENT: In the budget I have recommended\nfor fiscal 1977, there is no cap on the cost of living\nincreases on Social Security. Whatever the formula provides,\nthere will be an increase under the law for all beneficiaries\nof Social Security. I recommend it, and I strongly favor it.\nPRESIDENT FORD\nFEBRUARY 13, 1976\nTHE BAHIA MAR HOTEL\nFORT LAUDERDALE, FLORIDA\nGERALD R.\nFORD\nOLDER AMERICANS\nSOCIAL SECURITY\nTHE PRESIDENT: I think that is an excellent\nquestion, and it is one that ought to be answered. If we\nmake decisions about the integrity and certainty of the\nSocial Security Trust Fund on the basis of politics,\na person does not deserve to be elected President.\nThe truth is that everybody knows that in this\ncurrent fiscal year the receipts for taxes for the Social\nSecurity Trust Fund are $3 billion less than the expendi-\ntures, and everybody knows that next year there will be\n$3. 5 billion more going out of the Trust Fund than comes\nin in new taxes, and it is going to get progressively\nworse under the present set-up.\nEventually, if we don't do something, there\nwon't be any Trust Fund for the people who are already\nretired and the people who are going to retire.\nNow, I don't think we ought to play politics\nwith that kind of situation, and I don't intend to.\nPRESIDENT FORD\nFEBRUARY 14, 1976\nFT. MYERS EXHIBITIO\nFORT MYERS, FLORIDA\nGERALD\nFORD\nOLDER AMERICANS\nSOCIAL SECURITY\nAs President, I intend to do everything in my\npower to help our Nation demonstrate its deep concern for\nthe dignity and the well being of our older generations,\nFor those who need our help we have already a number of\nFederal programs providing assistance in a variety of\nways.\nNow, let me assure you of one thing very emphatically.\nMy Administration fully intends to preserve the integrity\nand the solvency of the Social Security system for your\nbenefit and that of all working Americans, men and women,\nnow as well as in the future.\nPRESIDENT FORD\nFEBRUARY 14, 1976\nWILLIAMS PARK\nST. PETERSBURG, FLORIDA\nGERALD\nLIBRARY FORD A\nOLDER AMERICANS\nSOCIAL SECURITY\nTHE PRESIDENT: I think that is an excellent\nquestion, and it is one that ought to be answered. If we\nmake decisions about the integrity and certainty of the\nSocial Security Trust Fund on the basis of politics,\na person does not deserve to be elected President.\nThe truth is that everybody knows that in this\ncurrent fiscal year the receipts for taxes for the Social\nSecurity Trust Fund are $3 billion less than the expendi-\ntures, and everybody knows that next year there will be\n$3.5 billion more going out of the Trust Fund than comes\nin in new taxes, and it is going to get progressively\nworse under the present set-up.\nEventually, if we don't do something, there\nwon't be any Trust Fund for the people who are already\nretired and. the people who are going to retire.\nNow, I don't think we ought to play politics\nwith that kind of situation, and I don't intend to.\nPRESIDENT FORD\nFEBRUARY 14, 1976\nFT. MYERS EXHIBITION HALL\nFORT MYERS, FLORIDA\nGERALD\nA\nTORD LIBRARY\nOLDER AMERICANS\nSOCIAL SECURITY\nQUESTION: Mr. President, prior to the 1974\nelections you indicated a need for special 5 percent\nincrease in income taxes. The only response you got from\nthe Democratic majority was that they used it against you\nat the election time.\nJust a few weeks ago you announced the necessity\nfor an increase of Social Security taxes and the cost of\nMedicare. Now, no doubt the only response you will get\nfrom the Democrats is that they will use it against you\nagain in November elections.\nNow, while I agree with you that these increases\nare a necessity, my question fromthe standpoint of\npractical politics, how do you justify the timing of the\ntax announcements?\nTHE PRESIDENT: I think that is an excellent\nquestion, and it is one that ought to be answered. If we\nmake decisions about the integrity and certainty of the\nSocial Security Trust Fund on the basis of politics,\na person does not deserve to be elected President.\nThe truth is that everybody knows that in this\ncurrent fiscal year the receipts for taxes for the Social\nSecurity Trust Fund are $3 billion less than the expendi-\ntures, and everybody knows that next year there will be\n$3.5 billion more going out of the Trust Fund than comes\nin in new taxes, and it is going to get progressively\nworse under the present set-up.\nEventually, if we don't do something, there\nwon't be any Trust Fund for the people who are already\nretired and the people who are going to retire.\nNow, I don't think we ought to play politics\nwith that kind of situation, and I don't intend to.\nPreasident Gerald R. Ford\nFort Meyers Exhibition Hall\nFort Meyers, Florida\nFebruary 14,\n1976\nFORD\nSOCIAL SECURITY\nWe are going to keep the Social Security Trust Fund\nstrong so that Americans in your age group don't have to worry\nat your age about the tremendous problems of catastrophic\nillness, and every one of us in this room has known families\nor known people who have had that misfortune.\nAmerica owes it to you to make sure that you don't\nhave the anxiety or the cost. Let me make one final pledge\nto all of you. You have done much for America and as a result\nI am proud to be, you are proud to be an American, and you are\nproud of America.\nOur obligation is to repay the debt to you and to make\nsure that America is good, is strong and a better place to live\nfor your children, your grandchildren and your great grandchildren.\nThat is our pledge to you.\nFEBRUARY 19, 1976\nPRESIDENT FORD\nHARPER'S ACRES RETIREMENT\nKEENE, NEW HAMPSHIRE\nGERALD\nSOCIAL SECURITY AND HEALTH CARE\nExcerpts of President Ford's Remarks\nAt Williams Park\nSt. Petersburg, Florida\nFebruary 14, 1976\nFor more than 40 years, through the vehicle of Social Security and other\nprograms, America has made a firm commitment of support for older Citizens\nof our society.\nI pledge to you this morning that I will continue to uphold that commitment.\nThe Social Security program, the largest of its kind in this world, will\npay almost $83 billion to more than 32 million Americans in fiscal year\n1977. That is more than a $10 billion increase over the current year.\nHere in Florida the Social Security Trust Fund will pay an estimated\n$4,400,000 to participants in the next fiscal year. In my budget for\nfiscal year 1977, I am recommending that the full cost-of-living increase\nin Social Security benefits be paid during the coming year.\nNow, let me assure you of one thing very emphatically. My administration\nfully intends to preserve the integrity and the solvency of the Social\nSecurity system for your benefit and that of all working Americans, men\nand women, now as well as in the future.\nAs long as I am President, we are going to keep Social Security protection\nand every other retirement program strong, sound and certain.\nIn the field of health care, the Federal Medicare program in 1976 will\nprovide more than $17 billion for the health care of 24 million older\nand disabled Americans.\nI have proposed major improvements in the Medicare program to make it\nserve you better. One of the most important improvements is the creation\nof a system of health insurance that would pay all but a very small\nfraction of the catastrophic cost of complex or extended care and treatment.\nI don't have to tell you that medical treatment is very, very expensive\ntoday. Hospital costs have risen by more than 200 per cent since 1965,\nto an average cost of $128 per day.\nNobody eligible for Medicare would have to pay more than $500 a year for\nhospital or nursing home care, and this does not mean that you pay the\nfirst $500 of your cost. You would pay only 10 per cent of the total cost,\nor $500, whichever is less, and the maximum annual cost to you for covered\ndoctor's services would be $250, or 20 per cent, whichever is less.\nMedicare would pay the rest, whether it costs $1,000 or $10,000 or $50,000.\nIt is a good program, and we are going to make it.\n##\nGERALD R. FORD\nSOCIAL SECURITY\nWe are going to keep the Social Security Trust Fund\nstrong so that Americans in your age group don't have to worry\nat your age about the tre: endows problems of catastrophic\nillness, and every one of us in this room has known families\nor known people who have had that misfortune.\nAmerica owes it to you to make sure that you don't\nhave the anxiety or the cost. Let me make one final pledge\nto all of you. You have done much for America and as a result\nI am proud to be, you are proud to be an American, and you are\nproud of America.\nOur obligation is to repay the debt to you and to make\nsure that America is good, is strong and a better place to live\nfor your children, your grandchildren and your great grandchildren.\nThat is our pledge to you.\nFEBRUARY 19, 1976\nPRESIDENT FORD\nHARPER'S ACRES RETIREMENT\nyy,\nKEENE, NEW HAMPSHIRE\nGERALD\n3\nFord\nUNIVERSITY\nOLDER AMERICANS\nSOCIAL SECURITY\nQUESTION: Mr. President, I would like to ask you\nwhat you foresee is happening to the Social Security program\nin both the near and the far future. More specifically in\nthe far future, do you ever foresee it becoming a voluntary\nprogram?\nTHE PRESIDENT: I don't see it coming as a voluntary\nprogram. I don't think it is the way to handle our Social\nSecurity program.\nOn the other hand, I think we have to be cognizant\nof the annual deficits that have developed between income on\nthe one hand and outgo on the other. This calendar year,\nmaybe it is the fiscal year, the deficit is about $3 billion.\nNext year it will be $3.5 billion, the following year close to\n$4 billion or more than $4 billion.\nThe net result is that if we don't do something\nabout it, the current $43 billion reserve fund will be\ndepleted because if you take $3 billion one year,\n$3.5 billion the next year, $4 billion the next year, eventually\nthat $43 billion reserve fund is gone.\nSo there are three or four alternatives. You can\nstart tapping the general fund, which I oppose. You can\nraise the wage ceiling which some propose. I don't think\nthat is the best answer. I recommended in January that to\nmake the Social Security Trust Fund secure, that we\nadd six-tenths of one percent to the employer and to the\nemployee cost which would at the maximum wage ceiling amount\nto less than a dollar a week.\nNow the Congress in an election year has rejected\nthat proposal, but that is only putting off the inevitable.\nThey have got to find an answer under our current beneficiary\nformula. It is inevitable, something has to be done.\nI thought we ought to face up to it this year even\nthough it is an election year, and I regret that the Congress\nis not facing up to it. That is the honest and realistic\nthing to do.\nGERALD\n&\nPresident Ford\nOHO\nMarch 12, 1976\nLIB:\nNorthern Illinois Newspaper Assoc.\nChicago, Illinois\nOLDER AMERICANS\nSOCIAL SECURITY\nQUESTION: Mr. President, I would like to ask you\na question on the economy. Aside from calling the Social Security\ntax an insurance,\" what remedy do you see for reducing\nthe regressiveness of this tax which hurts primarily the low\nand middle-income-groups?\nTHE PRESIDENT: The problem of the solvency of the\nSocial Security Trust Fund is one we have to face up to. I think\nit is wise to take a look at what has been happening this\nyear and what will happen in the next several years unless some-\nthing is done.\nThis year the deficit between income and outgo in\nthe Social Security Trust Fund is about $3 billion. Next year\nit is estimated that the deficit will be $3.5 billion. It will\ngo up in about that range each year, and eventually if we don't\ndo something, the $43 billion we now have in the Trust Fund will\nbe emptied.\nNow what are the remedies? You can go to the\ngeneral fund which will, in effect, destroy the concept that\npeople who get benefits have earned them, or you can do nothing,\nwhich I think would be probably the worst alternative because\nit would bring into jeopardy the benefits that people now have\nand those who are working to get them.\nThere are several other alternatives. You can do what\nthe subcommittee of the House Committee ori Ways and Means did,\nand then they were reversed by the full committee on Ways and\nMeans. They proposed that we increase the wage ceiling, which\nis now, I think, $15,100, and they recommended that it go to\n$17,000 something. That would be a way, but even though\nthe subcommittee approved, the full committee just last week\nturned it down.\nNow, what I have suggested, and I think it faces\nup to the issue very squarely, is that we have to start now\nto replenish the fund, and I have recommended that we increase the\ntax paid by the employees as well as the employer busex tenths\nof one percent, which would mean that the maximum.paid\nin addition by any taxpayer would be less than a dollar a week.\nMORE\nWheaton College\n2\nSocial Security cont.\nWheaton College\nI think it comes out to $49 a year. That is the\nmaximum. Now, the argument is often made that that is a\nvery regressive tax, and it can be argued that, but that is\nonly half of the argument. Because when the benefits are\npaid after the person retires, that regressiveness is reversed.\nThe beneficiaries in the lower income spectrum get more than\nthe people who are in the higher income area. So although they\npay more, they in return on retirement get more. So I think it\nis the best solution. It is the most open, it is the frankest,\nand I think it is the honest way to approach it. Unfortunately,\nI see in a political year the Congress apparently does not want\nto bite the bullet, but it will have to be faced, and we might\nas well face it, and the sooner the better.\nPresident Gerald R. Ford\nWheaton College\nWheaton, Illinois\nMarch 12, 1976\nGERALD\nR.\nFORD\nOLDER AMERICANS\nSOCIAL SECURITY\nPage 2\nAt the present time in this 12-month period there\nwill be $3.5 billion more money going out of the Social\nSecurity Trust Fund than comes in. Next year it will be\n$4 billion more out than comes in.\nAt the present time we have roughly $40 billion\nin the Social Security Trust Fund. By the early 1980s\nthere won't be any money in the Social Security Trust\nFund unless we do something to protect its economic\nstability.\nI took a hard bite at the bullet and came up with\na proposal that I think will protect the integrity of\nthe financial security of the Social Security Trust Fund.\nUnfortunately, the Congress wants to postpone it a little\nwhile longer. The longer they postpone it, the harder it\nwill get to solve the problem.\nBut as far as this President is concerned, he\nis going to face up to that issue as he has faced up to\nevery other issue, and I am not going to kid you one bit.\nWe are going to protect the financial integrity and security\nof that trust fund for the benefit of our older citizens.\nPresient Gerald R. Ford\nWest Bend High School\nApril 2, 1976\nGERALD\nOLDER AMERICANS\nSOCIAL SECURITY\nPage 1\nTHE PRESIDENT: I am a firm believer in the\nSocial Security program. I believe that it has not only\nhelped immensely those who retire at 62 or 65, but I think\nit has also been of great help and benefit when the husband,\nfor example, dies at 40 and there are survivorship benefits.\nI think there are other great advantages such\nas the disability portion of Social Security. I think we\nmust be certain and positive that the retirement benefits\nand the other benefits that come from the Social Security\nprogram are made certain, and this is where the problem\narises.\nPresident Gerald R. Ford\nWest Bend High School\nApril 2, 1976\nReceived\nGERALD\nand\nFORD\nOLDER AMERICANS\nSOCIAL SECURITY\nPage 1\nTHE PRESIDENT: I am a firm believer in the\nSocial Security program. I believe that it has not only\nhelped immensely those who retire at 62 or 65, but I think\nit has also been of great help and benefit when the husband,\nfor example, dies at 40 and there are survivorship benefits.\nI think there are other great advantages such\nas the disability portion of Social Security. I think we\nmust be certain and positive that the retirement benefits\nand the other benefits that come from the Social Security\nprogram are made certain, and this is where the problem\narises.\nPresident Gerald R. Ford\nWest Bend High School\nApril 2, 1976\nGERALD R. FORD\nLIBRARY\nOLDER AMERICANS\nSOCIAL SECURITY\nPage 2\nAt the present time in this 12-month period there\nwill be $3.5 billion more money going out of the Social\nSecurity Trust Fund than comes in. Next year it will be\n$4 billion more out than comes in.\nAt the present time we have roughly $40 billion\nin the Social Security Trust Fund. By the early 1980s\nthere won't be any money in the Social Security Trust\nFund unless we do something to protect its economic\nstability.\nI took a hard bite at the bullet and came up with\na proposal that I think will protect the integrity of\nthe financial security of the Social Security Trust Fund.\nUnfortunately, the Congress wants to postpone it a little\nwhile longer. The longer they postpone it, the harder it\nwill get to solve the problem.\nBut as far as this President is concerned, he\nis going to face up to that issue as he has faced up to\nevery other issue, and I am not going to kid you one bit.\nWe are going to protect the financial integrity and security\nof that trust fund for the benefit of our older citizens.\nPresient Gerald R. Ford\nWest Bend High School\nApril 2, 1976\nGERALD\nR.\nFORD\nOLDER AMERICANS\nSOCIAL SECURITY\nTHE PRESIDENT: I think the assumption is that\nwhen a widow marries a second time that her husband is in\na position to either support her with his Social Security\nor other resources and on that basis the law from the very\nbeginning has precluded a widow from getting what she got\nfrom her first husband.\nThat is the way the law is, and I can see where\nyou are suggesting it is inequitable. We have got a lot\nof things of that kind. One of the grossest examples,\nwhich is in the same area, a woman who works for five years\nand then marries and actually if she continues to work,\nwhen they retire she can't draw her Social Security.\nNow, that certainly is an inequity in my judgment,\nbut that is unfortunately the way the law is. We have a\ncommission or a committee that is studying the whole thing,\nincluding the financing of Social Security, and things of\nthis sort undoubtedly will come before me and before the\nCongress in 1977.\nPRESIDENT FORD\nAPRIL 9, 1976\nFAIRMONT HOTEL\nDALLAS, TEXAS\nGERALD\nOLDER AMERICANS\nSOCIAL SECURITY\nTHE PRESIDENT: I think the assumption is that\nwhen a widow marries a second time that her husband is in\na position to either support her with his Social Security\nor other resources and on that basis the law from the very\nbeginning has precluded a widow from getting what she got\nfrom her first husband.\nThat is the way the law is, and I can see where\nyou are suggesting it is inequitable. We have got a lot\nof things of that kind. One of the grossest examples,\nwhich is in the same area, a woman who works for five years\nand then marries and actually if she continues to work,\nwhen they retire she can't draw her Social Security.\nNow, that certainly is an inequity in my judgment,\nbut that is unfortunately the way the law is. We have a\ncommission or a committee that is studying the whole thing,\nincluding the financing of Social Security, and things of\nthis sort undoubtedly will come before me and before the\nCongress in 1977.\nPRESIDENT FORD\nAPRIL 9, 1976\nFAIRMONT HOTEL\nDALLAS, TEXAS\nFord\nOLDER AMERICANS\nSOCIAL SECURITY\nTHE PRESIDENT: I think the assumption is that\nwhen a widow marries a second time that her husband is in\na position to either support her with his Social Security\nor other resources and on that basis the law from the very\nbeginning has precluded a widow from getting what she got\nfrom her first husband.\nThat is the way the law is, and I can see where\nyou are suggesting it is inequitable. We have got a lot\nof things of that kind. One of the grossest examples,\nwhich is in the same area, a woman who works for five years\nand then marries and actually if she continues to work,\nwhen they retire she can't draw her Social Security.\nNow, that certainly is an inequity in my judgment,\nbut that is unfortunately the way the law is. We have a\ncommission or a committee that is studying the whole thing,\nincluding the financing of Social Security, and things of\nthis sort undoubtedly will come before me and before the\nCongress in 1977.\nPRESIDENT FORD\nAPRIL 9, 1976\nFAIRMONT HOTEL\nDALLAS, TEXAS\nFORD H. GERALD\nLIBRARY\nOLDER AMER CANS\nSOCIAL SECURITY\nTHE PRESIDENT: The Social Security program, which\nbecame law in 1933 or 1934, as I recall, was initially\npredicated on the basis that it was not to be your total\nretirement income but as a base or a floor, but in the\nensuing years that initial concept that was put forward\nby President Roosevelt has been forgotten and, in most cases,\ntoday your Social Security benefits in effect are the total\nretirement income of many, many people.\nNow the net result is that benefits have increased\nsubstantially and the consequence is that the Social Security\nTrust Fund, which today is at a level of approximately $45\nbillion or $41 billion, is gradually being decreased. As\na matter of fact, in this 12-month period there will be &\ndeficit between income and outgo of $3 billion.\nIn the next 12-month period the deficit will be\n$3-1/2 billion. In the next 12-month period, the deficit\nwill be $4 billion. So that $40 billion OF $41 billion\nSocial Security Trust Fund will be gone in a relatively\nshort period of time.\nNow what should we do about it? There are\nbasically three alternatives Humber one, we can increase\nthe tax on both employer and employee. I think this is the\nmost straightforward, the most honest way to approach it,\nand I recommended that to the Congress.\nAnd what does it amount to? For each employee\nand employer ---- for each individual employee it means less\nthan $49 per year. That is what the extra cost would be\nto make the Social Security Trust Fund on an equitable and\na sound basis.\nPRESIDENT FORD\nAPRIL 23, 1976\nPEACHTREE HIGH SCHOOL\nATLANTA, GEORGIA\nOLDER AMER CANS\nSOCIAL SECURITY\nTHE PRESIDENT: The Social Security program, which\nbecame law in 1933 or 1934, as I recall, was initially\npredicated on the basis that it was not to be your total\nretirement income but as a base or a floor, but in the\nensuing years that initial concept that was put forward\nby President Roosevelt has been forgotten and, in most cases,\ntoday your Social Security benefits in effect are the total\nretirement income of many, many people.\nNow the net result is that benefits have increased\nsubstantially and the consequence is that the Social Security\nTrust Fund, which today is at a level of approximately $40\nbillion or $41 billion, is gradually being decreased. As\na matter of fact, in this 12-month period there will be a\ndeficit between income and outgo of $3 billion.\nIn the next 12-month period the deficit will be\n$3-1/2 billion. In the next 2..month period, the deficit\nwill be $4 billion. So that $40 billion or $41 billion\nSocial Security Trust Fund will be gone in a relatively\nshort period of time.\nNow what should we do about it? There are\nbasically three alternatives: Number one, we can increase\nthe tax on both employer and employee. I think this is the\nmost straightforward, the most honest way to approach it,\nand I recommended that to the Congress.\nAnd what does it amount to? For each employee\nand employer ---- for each individual employee it means less\nthan $49 per year. That is what the extra cost would be\nto make the Social Security Trust Fund on an equitable and\na sound basis.\nPRESIDENT FORD\nAPRIL 23, 1976\nPEACHTREE HIGH SCHOOL\nATLANTA, GEORGIA\nOLDER AMERICANS\nSOCIAL SECURITY\nThe Social Security program, the largest of its\nkind in the world, will pay almost $83 billion to more the\n32 million Americans in this next fiscal year. This is\nmore - - and I emphasize more --- than a $10 Million increase\nover the current year. And, of course, I subject many of\nyou know -- but I want to reemphasize it to show my commine\nment -- in my budget for the next fiscal year. which be\nOctober 1, 1976, I am recommending that the full cost O\nliving increase in Social Security benefits in paid in\nthat year.\nFor more than 40 years, through the vehicle 0'\nSocial Security and other programs, the Federal Governmen\nhas made a firm commitment of support for older citizens\nof our society. I pledge to you that I will continue will it\nhesitation, reservation, to uphold that commitment.\nOHIO'S GOVERNORS' CONFERENCE ON AGING\nTHE STATE FAIRGROUNDS\nMAY 26, 1976\nFORD A. LIBRARY GERALD\nOLDER AMERICANS\nSOCIAL SECURITY\nQUESTION: Mr. President, I would like to ask you\nwhat ou foresee is happening to the Social Security program\nin botn the near and the far future. More specifically in\nthe far future, do you ever foresee it becoming a voluntary\nprogram?\nTHE PRESIDENT: I don't see it coming as a voluntary\nprogram. I don't think it is the way to handle our Social\nSecurity program.\nOn the other hand, I think we have to be cognizant\nof the annual deficits that have developed between income on\nthe one hand and outgo on the other. This calendar year,\nmaybe it is the fiscal year, the deficit is about $3 billion.\nNext year it will be $3.5 billion, the following year close to\n$4 billion or more than 34 billion.\nThe net result is that if we don't do something\nabout it, the current $113 billion reserve fund will be\ndepleted because if you take $3 billion one year,\n$3.5 billion the next year, $4 billion the next year, eventually\nthat $43 billion reserve fund is gone.\nSo there are three or four alternatives. You can\nstart tapping the general fund, which I oppose. You can\nraise the wage ceiling which some propose. I don't think\nthat is the best answer. I recommended in January that to\nmake the Social Security Trust Fund secure, that we\nadd six-tenths of one percent to the employer and to the\nemployee cost which would at the maximum wage coiling amount\nto less than a dollar a week.\nNow the Congress in an election year has rejected\nthat proposal, but that is only putting off the inevitable.\nThey have got to find an answer under our current beneficiary\nformula. It is inevitable, something has to be done.\nI thought we ought to face up to it this year even\nthough it is an election year, and I regret that the Congress\nis not facing up to it. That 1S the honest and realistic\nthing to do.\nFORD R. GERALD\nChicago, Illinois\nLIBRANA\nOLDER AMERICANS\nSOCIAL SECURITY\nQUESTION: Mr. President, I would like to ask you\nwhat ou foresee is happening to the Social Security program\nin both the near and the far future. More specifically in\nthe far future, do you ever foresee it becoming a voluntary\nprogram?\nTHE PRESIDENT: I don't see it coming as a voluntary\nprogram. I don't think it is the way to handle our Social\nSecurity program.\nOn the other hand, I think we have to be cognizant\nof the annual deficits that have developed between income on\nthe one hand and outgo on the other. This calendar year,\nmaybe it is the fiscal year, the deficit is about $3 billion.\nNext year it will be $3.5 billion, the following year close to\n$4 billion or more than 34 billion.\nThe net result is that if we don't do something\nabout it, the current $113 billion reserve fund will be\ndepleted because if you take $3 billion one year,\n$3.5 billion the next year, $4 billion the next year, eventually\nthat $43 billion reserve fund is gone.\nSo there are three or four alternatives. You can\nstart tapping the general fund, which I oppose. You can\nraise the wage ceiling which some propose. I don't think\nthat is the best answer. I recommended in January that to\nmake the Social Security Trust Fund secure, that we\nadd six-tenths of one percent to the employer and to the\nemployee cost which would at the maximum wage coiling amount\nto less than a dollar a week.\nNow the Congress in an election year has rejected\nthat proposal, but that is only putting off the inevitable.\nThey have got to find an answer under our current beneficiary\nformula. It is inevitable, something has to be done.\nI thought we ought to face up to it this year even\nthough it is an election year, and I regret that the Congress\nis not facing up to it. That 1S the honest and realistic\nthing to do.\nGERALD\nFORD\nChicago, Illinois"
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