News
"Believe
In Me. … Maine"
By Rep. Susan Austin
While serving on the Business Research and Economic
Development Committee I gain and gather "good
news" just for YOU! The Legislature is out of
session presently but there is still plenty of information
coming across my desk or gathered at forums and conferences.
Last Thursday I had lunch with the U.S. Treasurer,
Anna Cabral. Right, Cabral on the left and Austin
to the right. She had been invited to speak with
the Sebago Lake Region Chamber of Commerce and graciously
excepted as she has a fond and high regard for Maine
and New England. Before highlighting points of the
Social Security Reform Plan, Ms. Cabral spoke encouraging
words on the aftermath of the recent hurricanes that
hit the U.S. this fall. She shared that the economy
will recover well from the onslaught of Mother Nature.
Good news when one considers the strain that the devastation
brought on all aspects of human life, dignity and
enterprise. Regarding social security she reaffirmed
that the President is committed to reform to ensure
the health and stability of the system while cutting
our national dept in half by the year 2009. The plan
is revenue neutral but fairly sweeping. The Social
Security System was established 70 years ago and has
served this nation well.
Ms. Cabral feels that is has, however, not kept up
with the change in demographics over time. In the
past for every 6 people giving in to the system approximately
1 person was drawing on their benefits. Conversely
today the ratio is about 3.3 people paying in for
every person drawing. If a Social Security Fund is
accepted it will enable the system to stay solvent
through 2040.
If no action is taken then one of two things will
need to happen;
1) a 20% increase in taxation or
2) a 30% cut in benefits.
She shared the following four fundamental beliefs
that go hand and hand with this proposed reform:
1) for people 55 years and older there will be no
change
2) if reform is going to be given attention, let it
be thorough
3) do reform without raising taxes and
4) offer people a "choice" to open a personal
investment account with 2/3's going to social security
and 1/3 going into personal investment accounts.
The important feature is this is a "choice"
not a compulsory feature! One advantage of choosing
to utilize personal investment accounts is that upon
death, one's spouse and children will receive this
personal account. It becomes the family's asset not
the governments.
On a lighter note before closing Ms. Cabral described
the new ten dollar bill as breathtaking for it introduces
bright background shades of red and orange to our
currency. The bill has the water mark for security
against counterfeiting by Hamilton's head easily detectable
and the powerful phrase "we the people"
on it.
Speaking of security against fraud, our Treasurer
also encouraged people receiving Soc. Security benefits
to engage in direct deposit for safety and security
reasons when they receive their benefits.
Sue
Austin represents portions of Gray, North Yarmouth
and Pownal in the House of Representatives.
