Robert Matsui

Mr. MATSUI

Mr. MATSUI. Mr. Speaker, I rise today to share with my colleagues an exceptional editorial by Dr. Bill Lee of The Sacramento Observer, which underscores the threat Social Security privatization poses to minority communities. The Observer is the premier African-American news source in my hometown of Sacramento, and has been a staple of the community for nearly forty years. It has received over 500 national and local awards for journalism excellence, and has a weekly circulation of 50,000 paid subscribers. Dr. Lee's column makes a critical point that is sometimes overlooked: privatizing Social Security would be devastating to minorities, who benefit disproportionately from the program. In fact, privatization would likely result in smaller benefits not only for minorities, but also for women and low-income workers. The future of Social Security is profoundly important to all Americans, particularly minorities. The voices of African-American leaders like Dr. Lee--the founding editor of the family-owned Observer--must be heard. I commend Dr. Lee for bringing this issue to the attention of his readers and his community, and I am proud to bring the Observer's unique perspective to the floor of the House. [From the Sacramento Observer] Social Security Continues to Work for Us, Here's How (By Dr. William H. Lee) Everywhere I look in the African American community, I see the success stories of Social Security. I see seniors counting on it in their retirement. I see people who were able to pay their rent or make it through college thanks to survivors'benefits. I know I am counting on Social Security to help me in my golden years, just like others in the African American community are counting on it. But why is Social Security so important? Social Security says a lot about who America is and what we stand for as a nation. By providing seniors with guaranteed retirement income for life and protecting young families who lose a breadwinner to disability or death, Social Security shows that America can be a compassionate nation. It proves that this is a nation with a bottom line: that we can stand together, especially when life is most difficult. It's a promise America has made to its people, a promise that has kept millions of its citizens out of poverty. I want to tell you, however, about a threat to this successful and popular program: proposals to privatize Social Security. Privatization of the Social Security program may sound like a good idea at first, but ``the devil is in the details''-- the more you learn about it, the worse it becomes. It would cut benefits and pave the way for the ultimate destruction of the program. That is something we cannot allow to happen. Some people in Washington D.C. want us to believe that Social Security is about to collapse. We have to make one thing clear to our readers: Social Security is not in crisis. In March, the Social Security Trustees released their annual report on the program's financial health. For the fourth year in a row, the outlook improved. New economic and demographic projections show that Social Security can pay full benefits until 2041. We need to acknowledge the challenge ahead: four decades from now, Social Security will only be able to pay three-quarters of promised benefits. That is, however, a challenge we can overcome. It is not an imminent crisis that requires the unraveling of Social Security's fundamental purpose. Privatization proponents want you to believe that Social Security is in crisis and that ``a radical change'' is necessary. But the truth is privatization will only make Social Security's financial problems worse. Privatization is based on the idea that one can take money out of the trust fund without any negative consequences. But this seemingly simple proposition is based on a flawed and misleading understanding of how the program works. Since Social Security taxes are immediately paid out to current beneficiaries (it's a ``pay-as-you-go'' system), money taken out of the program would come directly out of our parents or grandparents' pockets. That's why privatization will mean benefit cuts. And these cuts would affect all recipients--retirees, disabled workers, and survivors alike. And since privatization opens a gaping hole in Social Security's finances, trillions of dollars would be needed to make up the difference. Where would this money come from? No one knows. Privatization will weaken Social Security for all Americans, but for some the results will be even more devastating. This is particularly true for African Americans. But, it is also true for women, lower-income workers, and other ethnic minorities. For example, minorities tend to benefit disproportionately from the disability and survivors components of Social Security, but these will be cut across the board to make room for private accounts. Women are also particularly vulnerable to the effects of privatization. For example, African American women, on average, live longer than men and spend more time out of the workforce to raise children or take care of elderly parents. As a result, they would have less to deposit into private accounts. They would therefore have to live on smaller benefits from smaller accounts over a longer period of time, without the protection from inflation offered by Social Security. Social Security serves as the foundation of a secure retirement--unshakable by the ups and downs of the stock market, the timing of your retirement, or corporate scandals. Social Security is set up so that our nation's seniors, all our seniors will be protected at the end of the road. It ensures that seniors will not suffer like Enron employees who watched the value of their stock accounts plummet and their dreams of a secure retirement vanish along with it. Of course, Americans should be encouraged to save more. Personal savings have an important role to play, especially in the African American community. But it is critical that we keep a portion of retirement income guaranteed. Social Security is that guarantee. Privatization does not work. Social Security does. It has worked in the African American community, and in all other communities, for over 60 years. We should work together to defend it, protect it, and improve it. But we should oppose those who would fundamentally alter it, break it, or send it, piece by piece, to its demise.

Mr. MATSUI

Mr. MATSUI. Mr. Speaker, I rise in strong support of H. Res. 392, a Resolution to express solidarity with Israel in its fight against terrorism. Now more than ever, Americans can sympathize and find common cause with the plight of the Israeli people as they struggle against terrorism. And now more then ever, Israel needs our solidarity and support. It is, and has always been, in both the moral and strategic interests of the United States to stand by its only true friend and ally in the region. Israel is a lone democracy in a region that knows too little political freedom. It is one of the few countries in that volatile part of the world that does not support terrorist organizations. Like America, Israel is a society governed by law. Like ours, the Israeli press questions the actions of its government and allows for a pluralism of ideas. And like ours, Israel's society is under attack by those that seek its destruction and are willing to use the most inhumane form of terrorism--turning young men and women into human bombs--to achieve their ends. Like all concerned Americans, I hope for a peaceful, negotiated solution to the crisis in the Middle East, and I condemn intentional acts of violence against all civilians, both Israeli and Palestinian. When a Palestinian leader emerges who will renounce terrorism unequivocally and seek peace, all parties in the region will have an obligation to embrace the opportunity. Until then, Israel has the right to defend itself from those who will never accept its very existence. That's why it is so critical that we here in America never waver in our resolve to stand by the State of Israel. Israel faces the unfortunate reality of being a beachhead in the global war against terrorism. But more than this, Israel is a friend and ally. If terror is allowed to succeed in Israel, by forcing political concessions with vicious suicide attacks, it will only embolden those who seek to destroy the U.S., and indeed all civilization, with similar tactics. Israel is fighting for its survival against the forces of terror. Terror must not be allowed to win. The Israeli people will continue their struggle for peace and security. They should do so knowing they have the full support of the United States of America. Good diplomacy is based on sound values. American values stand firmly with the State of Israel. I urge my colleagues to vote ``yes'' on the resolution.

Mr. MATSUI

Mr. MATSUI. Mr. Speaker, I thank the ranking member of the Committee on Ways and Means for yielding me time. Mr. Speaker, this bill will not give anybody a diaper rash. It has nothing to do with diaper rashes and things of that nature. What we saw was that in January of 2001, we were projecting a $5.6 trillion surplus. That surplus is almost all gone now because we passed a tax cut of $1.3 trillion last year, and now we are going to pass a $4 trillion tax cut over the next 20 years. $5.5 trillion in tax cuts. What is interesting about this tax cut, it will not give baby rashes, but those people whose tax returns show an average of $500,000 a year, let me repeat that, $500,000 a year, will get 60 percent of that $5.5 trillion surplus. To put it another way, if your tax return shows over $1 million a year, you are going to get 40 percent of this $5.5 trillion tax cut. This is payroll tax money. The people on the elevators, running the elevators, waitresses in restaurants, this is their money that they think is going into the Social Security trust account, and instead it is going to go to pay for tax cuts for those earning $1 million a year or $500,000 a year. I have to say that in addition to that, this is going to put a massive drain on the Social Security trust fund. It will not give baby rashes, but it is going to do major damage to senior citizens throughout the United States. $5.5 trillion. Forty million new Americans are going to go on the Social Security system in the next 20 years while this tax cut is going through, and we are going to see, if this tax cut goes through, $5.5 trillion, a 30 percent reduction, a 30 percent reduction in the average American Social Security benefits. That is what this is really all about. It is an issue, frankly, of values, what this country stands for. We want to make sure that we have clean air, we want to make sure we have education for our children, we want to make sure that we give our senior citizens the life they are entitled to in their retirement age.

Mr. MATSUI. I yield to the gentleman from New York.

Mr. MATSUI. Mr. Speaker, reclaiming my time, I would say to the gentleman from New York that over the last 4 years, we had seven votes that the Republican leadership put to the floor of the House saying we were not going to invade the Social Security trust accounts.

Mr. MATSUI. Mr. Speaker, they have raided the Social Security trust account. They are going to take $5.5 trillion out if this tax cut goes through, and it is going to have a 30 percent reduction in benefits for the average Social Security recipient.

Mr. MATSUI

Mr. MATSUI. Mr. Speaker, I rise in tribute to Mike Donovan Johnson, the Local 522's City Vice President, for eleven years, of the Sacramento Area Firefighters Union. Mike is retiring after thirty-three years of outstanding service to the City of Sacramento Fire Department. As his friends and family gather to celebrate Mike's illustrious career, I ask all of my colleagues to join with me in saluting one of Sacramento's most talented citizen leaders. Mike was born and raised in Sacramento. He earned a Fire Science Certificate and a Bachelor of Science degree in Public Administration/ Political Science. For the past three decades, Mike has worked for the City of Sacramento Fire Department as a Firefighter, and Apparatus Operator, and the last nineteen years, as a Fire Captain. In addition, Mike is also a highly qualified Hazardous Materials Specialist and he often lends his expertise as a B shift Captain at Station 21. Throughout his career, Mike has remained one of the most cherished and well-respected members of the City of Sacramento Fire Department. Mike began his union career as City Director in 1972. After two years in that post, Mike was elected City Vice President for the first time in 1974. In addition, Mike has performed the duties and responsibilities of the Political Action Committee Treasurer for the past twenty-two years. Mike has been an indispensable member of the Local 522 Executive Board for the past thirty years. All in all, Mike has steadfastly represented the members of the Sacramento Fire Department with great honor and dignity for the past three decades. In addition to his contributions to the Local 522, Mike has also offered his valuable contributions, to a number of statewide organizations. Mike has served on numerous statewide committees through California Professional Firefighters. In the past, Mike has also been a delegate to the Sacramento County Central Democratic Committee. Staying true to his unyielding commitment to represent the interests of firefighters, Mike is looking to remain active in the cause in his retirement years. Currently, Mike is a member of the California Firefighters Joint Apprentice Committee Board. Furthermore, Mike remains a delegate to the Sacramento Central Labor Council, a member of the Industrial Relations Association of Northern California and sits on the Regional Fire Task Force. In particular, Mike continues to serve the members of the fire service community through his support for the passage of Measure F, a change to the City of Sacramento Charter to improve the health insurance provided to its retired employees. Mike's commitment to serving his community is truly an example to his fellow citizens. Mr. Speaker, as Mike Johnson's friends and family gather for his retirement dinner, I am honored to pay tribute to one of Sacramento's most honorable citizens. His successes are considerable, and it is a great honor for me to have the opportunity to pay tribute to his contributions. I ask all my colleagues to join with me in wishing Mike Johnson continued success in all his future endeavors.

Mr. MATSUI

Mr. MATSUI. Mr. Speaker, I have to say what happened with the Enron situation was not unique because this is going to happen more and more. Essentially what has happened is CEOs and top management people in many corporations have set up a plan that basically violates the principles of our pension laws. Ken Lay, for example, was able to get deferred compensation, that is, he did not have to pay any taxes on his retirement program. Yet when Enron filed bankruptcy, he was able to collect about $2 million from that plan, whereas every other Enron employee lost valuable assets in their 401(k) plan. This would merely tighten that up and make it consistent where Members of both the House and the Senate, and certainly Democrats and Republicans would not want anyone to be able to defer taxes, and at the same time be able to get a fully funded program that is protected from bankruptcy. Mr. Speaker, this has to be tightened up. This is closing a loophole. This is something that we cannot allow to happen as we see more and more of these Enron scandals occur.

Mr. MATSUI

Mr. MATSUI. Mr. Speaker, I am pleased to join with the Chairman of the Social Security Subcommittee, Mr. Shaw, in introducing this bill aimed at making improvements in benefits for women under the current Social Security system. In order to maintain fiscal responsibility, we were limited in the number and scope of the improvements we were able to make. However, the disabled widows, divorced retirees, and widows whose husbands died shortly after retirement who are affected by these improvements will certainly benefit from these changes. Equally important as the benefit changes themselves, however, is what this bill symbolizes. It shows the importance of maintaining and preserving the defined-benefit Social Security system we have today. It shows how we are able to improve the fortunes of needy beneficiaries by building on the existing structure of the Social Security system. And it shows how the two parties are able to work together once they agree on the goal: to put aside Social Security privatization and instead improve Social Security's guaranteed, lifelong, secure benefits. I look forward to the swift adoption of these important benefit enhancements.

Mr. MATSUI

Mr. MATSUI. Mr. Speaker, last year the President convened a special, hand-picked commission to study Social Security reform. Unfortunately, the commission was comprised entirely of those who support private accounts as a precondition to any reform proposals they might consider. In December 2001, the commission disbanded after releasing a report in which it detailed three privatization options, each of which cuts benefits and requires massive general revenue transfers to finance private accounts. President Bush continues to advocate these untested privatization plans as the single solution to Social Security's future financing challenges, but he has thus far been unwilling to submit these schemes to the rigors of the legislative process of advocacy, testimony, and amendment. If these plans are indeed credible options, they should be treated as such. They should be marked up in the House Ways and Means Committee and brought as soon as possible to the House floor for debate and a vote. Should any one of the measures prove feasible or desirable, it would subsequently be sent to the Other Body for additional debate and votes. Should both houses agree, the legislation would then be sent to the President of the United States for his signature or veto. Sadly, it appears unlikely that Social Security privatization will follow this rational and democratic course. The Republicans refuse to place this issue on the agenda. They have scheduled no markups, no debate, and no votes on what will be a radical change to the most successful program in American history. Meanwhile, the President has indicated that he intends to move forward with these proposals next year. Mr. Speaker, Social Security is a critically important program for millions in America, and the American people deserve an honest debate on these proposals now. That is why I am introducing this legislation. It is the only way the American people will get the debate they deserve. Simply put, if neither the President nor the Republican majority in the House will submit the President's privatization plans to the light of day, others will be forced to do it for them. It is with a sincere hope for an open and fair debate that I introduce this legislation to the House of Representatives. I now call on the Republican majority to bring this legislation to the floor.

Mr. MATSUI

Mr. MATSUI. Madam Speaker, I yield myself such time as I may consume to just point out to the Members that the gentleman from New York (Mr. Rangel) is leaving not as a sign of discourtesy to the Chair, but he has been summoned to the White House to talk about some of the New York issues. He is meeting with the President. In fact, he is a little late at this moment. So he does wish that people understand that he is leaving for the purpose of meeting with the President. Madam Speaker, I yield 2 minutes to the distinguished gentlewoman from the State of Connecticut (Ms. DeLauro).

Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from Indiana (Mr. Roemer). (Mr. ROEMER asked and was given permission to revise and extend his remarks.)

Mr. MATSUI. Madam Speaker, I yield 2 minutes to the distinguished gentlewoman from Ohio (Mrs. Jones).

Mr. MATSUI. Madam Speaker, I yield 1 minute to the gentleman from Texas (Mr. Green).

Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentlewoman from California (Ms. Millender-McDonald).

Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from Maryland (Mr. Cardin).

Mr. MATSUI. Madam Speaker, I yield 3 minutes to the distinguished gentlewoman from Florida (Mrs. Thurman).

Mr. MATSUI. Madam Speaker, I yield 2 minutes to the distinguished gentleman from California (Mr. Dooley).

Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from New Jersey (Mr. Pallone).

Mr. MATSUI. Madam Speaker, I yield 1 minute to the distinguished gentleman from New Jersey (Mr. Andrews). (Mr. ANDREWS asked and was given permission to revise and extend his remarks.)

Mr. MATSUI. Madam Speaker, I yield 1 minute to the gentleman from Virginia (Mr. Moran).

Mr. MATSUI. Mr. Speaker, I yield 3\1/2\ minutes to the distinguished gentleman from the State of Washington (Mr. McDermott), a member of the Committee on Ways and Means.

Mr. MATSUI. Mr. Speaker, I yield the balance of my time to the distinguished gentlewoman from the State of California (Ms. Pelosi), the Democratic whip.

Mr. MATSUI

Mr. MATSUI. Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. Edwards).

Mr. MATSUI. Mr. Speaker, I yield 2\1/2\ minutes to the distinguished gentleman from Tennessee (Mr. Tanner).