Unable to convert ARMS_EXT: [ATTACH.D67]MAIL44435850B.036 to ASCII,
The following is a HEX DUMP:
FF57504345070000010A0201000000020500000093200000000200OOOD8FE6EAB5538ED64D7461
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644ABE76E36669B2CA4AF458BBE1DB6887265BF381848BE154798A70F44B0650D968032219EC66
PRESIDENT CLINTON AND VICE PRESIDENee~pnversion
AT LEAST A $76 BILLION SURPLUS IN 1999
January 6, 1999
President Clinton and Vice President Gore Have Put America's Fiscal House In Order and
Closed The Book On A Generation of Deficits. In 1993, President Clinton and Vice President
Gore put in place a three-part economic strategy: to cut the deficit to help reduce interest rates and
spur business investment; to invest in education, health care, and technology so that America was
prepared to meet the challenges of the 21 st century; and to open markets abroad so that American
workers would have a fair chance to compete and win across the globe. Today, America's fiscal
house is in order. The Office of Management and Budget now projects that the budget surplus in
fiscal year 1999 will exceed $76 billion.
Instead of $404 Billion Deficit, At Least $76 Billion Surplus This Year. When President
Clinton took office, the Congressional Budget Office (CBO) projected the deficit to be $404
billion this year; using preliminary information, the Administration expects the surplus to be at
least $76 billion this year.
At Least $76 Billion Surplus -- The Biggest Dollar Surplus in History. In 1992, the deficit
was $290 billion -- the biggest dollar deficit in American history. This year, the
Administration expects the surplus to be at least $76 billion -- the biggest dollar surplus in
American history. As a share of GDP, the budget surplus would be almost one percent this
year -- the largest since the 1950s. And for the first time in 40 years, we will have a budget
surplus for two years in a row.
Seven Years in A Row of Fiscal Improvement -- The First Time in U.S. History.
Reaching a surplus in 1999 would mark the seventh consecutive year of improved fiscal
balance -- the longest period of consistent improvement in all of American history.
While Cutting Federal Spending To Its Lowest in a Quarter Century, President Clinton
Has Expanded Critical Investments in the Future, Such As Education and Training.
President Clinton's 1993 Economic Plan included $255 billion in spending cuts over five years
-- more than half ofthetotal deficit reduction package. As a result, federal spending as a share
of the economy has declined for each of the past six years and is now the lowest in 24 years.
However, as spending has been cut in lower priority areas, President Clinton has dramatically
increased funding in critical areas, such as education and training, children, the environment,
health care, and research and development.
While Eliminating The Budget Deficit, President Clinton Has Provided Tax Relief for
Middle-Income Families. Because of the tax cuts for working families signed into law by
President Clinton, the typical American family of four will face the lowest federal tax burden in
over two decades (since 1976). President Clinton proposes to build upon this record to
provide additional targeted, paid-for tax relief for child care, education, pensions, affordable
housing, and the environment.
We Cannot Turn Back: We Have Fixed The Fiscal Deficit, Now We Must Fix The Generational
Deficit. President Clinton is committed to taking advantage of this historic opportunity to save
Social Security for the 21 st century. We must act now to tackle this tough, long-term challenge;
and President Clinton believes that we must do it in a way that maintains universality and
fairness, ensures that Social Security continues to provide a benefit people can count on,
protects low-income and disabled beneficiaries, and maintains our fiscal discipline.
==================== ATTACHMENT 1 ====================
ATT CREATION TIME/DATE: 0 00:00:00.00
TEXT:
Unable to convert ARMS_EXT: [ATTACH.D67]MAIL44435850B.036 to ASCII,
The following is a HEX DUMP:
FF57504345070000010A0201000000020500000093200000000200OOOD8FE6EAB5538ED64D7461
4B509A1252DB32C4545729F2AAA416A1346E0058329567175BE1C548OA003D6228E4647D71C9EA
644ABE76E36669B2CA4AF458BBE1DB6887265BF381848BE154798A70F44B0650D968032219EC66
PRESIDENT CLINTON AND VICE PRESIDENee~pnversion
AT LEAST A $76 BILLION SURPLUS IN 1999
January 6, 1999
President Clinton and Vice President Gore Have Put America's Fiscal House In Order and
Closed The Book On A Generation of Deficits. In 1993, President Clinton and Vice President
Gore put in place a three-part economic strategy: to cut the deficit to help reduce interest rates and
spur business investment; to invest in education, health care, and technology so that America was
prepared to meet the challenges of the 21 st century; and to open markets abroad so that American
workers would have a fair chance to compete and win across the globe. Today, America's fiscal
house is in order. The Office of Management and Budget now projects that the budget surplus in
fiscal year 1999 will exceed $76 billion.
Instead of $404 Billion Deficit, At Least $76 Billion Surplus This Year. When President
Clinton took office, the Congressional Budget Office (CBO) projected the deficit to be $404
billion this year; using preliminary information, the Administration expects the surplus to be at
least $76 billion this year.
At Least $76 Billion Surplus -- The Biggest Dollar Surplus in History. In 1992, the deficit
was $290 billion -- the biggest dollar deficit in American history. This year, the
Administration expects the surplus to be at least $76 billion -- the biggest dollar surplus in
American history. As a share of GDP, the budget surplus would be almost one percent this
year -- the largest since the 1950s. And for the first time in 40 years, we will have a budget
surplus for two years in a row.
Seven Years in A Row of Fiscal Improvement -- The First Time in U.S. History.
Reaching a surplus in 1999 would mark the seventh consecutive year of improved fiscal
balance -- the longest period of consistent improvement in all of American history.
While Cutting Federal Spending To Its Lowest in a Quarter Century, President Clinton
Has Expanded Critical Investments in the Future, Such As Education and Training.
President Clinton's 1993 Economic Plan included $255 billion in spending cuts over five years
-- more than half ofthetotal deficit reduction package. As a result, federal spending as a share
of the economy has declined for each of the past six years and is now the lowest in 24 years.
However, as spending has been cut in lower priority areas, President Clinton has dramatically
increased funding in critical areas, such as education and training, children, the environment,
health care, and research and development.
While Eliminating The Budget Deficit, President Clinton Has Provided Tax Relief for
Middle-Income Families. Because of the tax cuts for working families signed into law by
President Clinton, the typical American family of four will face the lowest federal tax burden in
over two decades (since 1976). President Clinton proposes to build upon this record to
provide additional targeted, paid-for tax relief for child care, education, pensions, affordable
housing, and the environment.
We Cannot Turn Back: We Have Fixed The Fiscal Deficit, Now We Must Fix The Generational
Deficit. President Clinton is committed to taking advantage of this historic opportunity to save
Social Security for the 21 st century. We must act now to tackle this tough, long-term challenge;
and President Clinton believes that we must do it in a way that maintains universality and
fairness, ensures that Social Security continues to provide a benefit people can count on,
protects low-income and disabled beneficiaries, and maintains our fiscal discipline.
Unable to convert ARMS_EXT: [ATTACH.D821MAIL441391917.036 to ASCII,
The following is a HEX DUMP:
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BF882D8CIB7CCAB7A21721DECBS42D869167B683309D4BF9C8EDE3F3DCBFSC37FD247C9274473E
Hex-Dump Conversion
SAVING SOCIAL SECURITY NOW
AND
MEETING AMERICA'S CHALLENGES
FOR THR 21st CENTURY
In His State of the Union Address, President Clinton Put Forward His Framework To Save
Social Security Now, While Meeting America's Challenges for the 21st Century. The
President and Vice President's framework strengthens Social Security by:
Transferring 62 percent of the projected budget surpluses over the next 15 years -- more
than $2.7 trillion -- to the Social Security system.
Investing a portion of the transferred surpluses in the private sector to achieve higher
retums for Social Security -- just as any state or local government, or private pension does
-- after working with Congress to devise a mechanism to ensure that the investments
are made independently and without political interference. We will support using a
broad-based neutral approach managed by the private sector with minimum
administrative costs.
Keeping Social Security solvent until 2055.
Calling for a bipartisan effort to make the hard-headed but sensible and achievable
choices needed to save Social Security until at least 2075. As part of this effort,
President Clinton and Vice President Gore believe that we must:
o Reduce poverty among elderly women -- particularly widows, who have a poverty
rate nearly twice the overall poverty rate for older Americans.
o Eliminate the confusing and out-dated eamings test so that we stop discouraging
work and earnings among older Americans.
After Social Security Reform Is Secured -- Consistent With the President's "Save Social
Security First" Commitment -- the President Proposes To:
Strengthen Medicare for the 21st Century. The President's framework will reserve 15
percent ofthe projected surpluses for Medicare, ensuring the Medicare Trust Fund is secure
for 20 years. The President believes that these new resources should be used to help
achieve broader, bipartisan reforms -- which should include a prescription drug benefit.
Create New Universal Savings Accounts -- USA Accounts. The President's framework
will reserve 11 percent of the projected surpluses to create new Universal Savings
Accounts (US As) so all working Americans can build wealth to meet their retirement
needs. To help Americans save and to strengthen our current pension system, the
government will provide an equal dollar contribution for most Americans. In addition, the
government will match a portion of each additional dollar an individual puts voluntarily
into hislher USA account -- with larger matches going to lower-income workers.
Prepare America for the Challenges of the Future. The President's framework will
reserve 11 percent of the projected surpluses for military readiness and pressing national
Hex-Dump Conversion
domestic priorities, such as education and research.
'-i(j,,-2~mp Conversion
SAVE SOCIAL SECURITY NOW:
STRENGTHENING SOCIAL SECURITY FOR THE 21st CENTURY
In His State of the Union Address, President Clinton Put Forward A Framework To
Strengthen Social Security Now. Since its creation more than 60 years ago, Social
Security has been a bedrock of retirement security for Americans. There are 76 million
baby boomers looking ahead to retirement. By 2030, there will be twice as many elderly as
there are today, putting pressure on the Social Security system. After 2032, if we do
nothing, the Trust Fund will be exhausted and Social Security will have only enough
resources to cover 72 cents per dollar of promised benefits. President Clinton and Vice
President Gore believe we must act now to tackle this tough, long-term challenge. That is
why they are proposing to:
Use the Budget Surplus To Save Social Security Now
"Saving Social Security First." Last year, in his State ofthe Union Address; President
Clinton promised to save the budget surplus until we knew how much would be needed to
save Social Security for the 21 st century. This year, in his State ofthe Union Address,
President Clinton reiterated his pledge to save Social Security first -- committing to
reserve the budget surplus until Social Security reform is secured.
62 Percent of the Projected Budget Surpluses Will Be Used to Save Social Security.
President Clinton proposes to transfer 62 percent of the projected budget surpluses over
the next 15 years -- more than $2.7 trillion -- to Social Security.
Invest A Portion of the Surpluses To Achieve Higher Returns for Social Security
Invest Portion of Surpluses To Achieve Higher Returns, Working With Congress to
Devise A Mechanism to Ensure Independent and Non-Political Investments. We
want to work with Members of Congress from both sides of the aisle to craft a bipartisan
Social Security plan which invests a portion of the surplus transferred to Social Security
to achieve higher returns, and includes a mechanism to ensure that investments are
made independently and without political interference. We will support using a
broad-based neutral approach managed by the private sector with minimum
administrative costs.
o To achieve higher returns for Social Security, less than one-quarter of the
transferred surpluses will be invested in the stock market.
Save Social Security Until 2055 -- And Work Together To Save It Until At Least 2075
President's Framework Keeps Social Security Solvent Through 2055. By transferring
62 percent of the projected surpluses for the next 15 years to Social Security and investing a
portion of them in the market -- just like any private or state or local government pension
3
f icx-tJump ConvGision
does -- we will ensure that Social Security is on sound footing for 55 years -- until 2055.
Must Work Together -- Across Party Lines -- To Make Hard-Headed, But Sensible
and Achievable Choices To Save Social Security for 75 Years. President Clinton's
goal is to save Social Security for 75 years. To do so, he believes we must work together
in a bipartisan way to make the hard-headed, but sensible and achievable choices to save
Social Security through at least 2075.
Publicly Held Debt Will Fall To Lowest As Share of GDP Since 1917
Turning Around America's Fiscal Position. Under Presidents Reagan and Bush, the
debt held by the public quadrupled, rising from $785 billion in 1981 to $3.2 trillion in
1993. As a share ofthe economy, the publicly held debt increased from 26 percent in
1981 to 50 percent in 1993. Since President Clinton took office, the publicly held debt
as a share of GDP has dropped to about 45 percent. .
Debt-to-GDP Ratio Will Fall to Lowest Level Since 1917. Under the President's
framework, current projections suggest that the publicly held debt, as a share ofGDP,
will fall from about 45 percent today to less than 10 percent in 2014 -- its lowest level
since 1917.
Reduce Poverty Among Elderly Women -- Particularly Widows
Poverty Rates Among Elderly Women -- Particularly Widows -- Remain High. The
poverty rate for all elderly women was 13.1 percent in 1997. For widowed women, poverty
rates are especially high: the poverty rate is 18.0 percent for widowed women -- nearly four
times the poverty rate of married women (4.6 percent) and much higher than the poverty rate
of widowed men (11.4 percent).
President's Framework Would Lower Poverty Rates Among Elderly Women--
Especially Widows. Currently, widow benefits vary from 50 to 67 percent of benefits
for a married couple when both members were alive. The official poverty thresholds
imply that a widow needs over 75 percent of a couple's income to maintain her
pre-widowhood consumption. This is a key reason why widow poverty is so much
higher than overall elderly poverty. The President is committed to reducing the loss of
Social Security income at widowhood.
Eliminate the Out-Dated and Confusing Earnings Test
President Clinton Believes We Should Eliminate The Earnings Test. President
Clinton believes that the earnings test has outlived its use. Today, it primarily serves to
confuse people, and to discourage them from working. We want to work with Members
of Congress to eliminate the earnings test as part of a comprehensive package to
strengthen Social Security for the 21st century.
4
Hex-Dump Conv,,;sion
Earnings Test Should Be Eliminated Because It Is Out-Dated And Confusing -- And
It Discourages Work and Earnings Among the Elderly. The Social Security earnings
test is a confusing relic of a past era. It discourages the elderly from working. It is
administratively complicated; administering the eamings test imposes significant
administrative burden on the Social Security Administration. Finally, eliminating the
earnings limit would have almost no effect on the long-run actuarial balance of the Social
Security system.
MEETING AMERICA'S CHALLENGES
FOR THE 21st CENTURY
After Social Security Reform Is Secured -- Consistent With the President's "Save Social
Security First" Commitment -- The President Proposes To Meet The Following Three
Challenges:
STRENGTHENING MEDICARE FOR THE 21st CENTURY
RESERVE 15 PERCENT OF THE PROJECTED SURPLUSES FOR MEDICARE,
EXTENDING THE LIFE OF THE MEDICARE TRUST FUND UNTIL 2020.
We Must Prepare for the Health Care Challenges of the Next Century. In its
30-year history, Medicare has contributed to longer lives and better lives for America's
elderly and disabled. However, Medicare -- like Social Security -- will be impacted by
the tidal wave of the "Senior Boom." Its emollment is expected to double by 2030. In
addition, Medicare -- as well as tqe private sector -- faces escalating health care costs.
As a result, the Medicare Trust Fund is expected to run out in 2008, ifno actions are
taken.
Reserving Nearly One in Six Dollars of Surplus to Help Keep Medicare Safe Until
2020. The President's framework would reserve 15 percent of the projected surpluses--
$650-$700 billion -- over the next 15 years for the Medicare Trust Fund. These funds
would be prohibited from being used for any other purpose, ensuring that the money will
go to help the health care needs of older and disabled Americans. Even in the absence of
broader reforms, the President's framework would guarantee that Medicare can continue
to provide its critical health services until 2020 -- doubling the life of the Medicare Trust
Fund and providing the strongest outlook in the last 25 years.
New Funds Should Be Used To Help Achieve Broader, Bipartisan Reform. The
President believes that the Medicare Commission and Congress should utilize these new
dedicated dollars as part of broader, bipartisan reforms. Such reforms, including the
development of a long-overdue prescription drug benefit, are essential to provide efficient
health care to the elderly and people with disabilities in the 21st century.
5
Hex-Dump ConvGi'sion
UNIVERSAL SAVINGS ACCOUNTS (USAs)
RESERVE 11 PERCENT OF THE PROJECTED SURPLUSES TO CREATE NEW
UNIVERSAL SAVINGS ACCOUNTS (USAs) SO EVERY WORKING AMERICAN CAN
BUILD WEALTH AND A NEST EGG TO MEET THEIR RETIREMENT NEEDS.
USA Accounts Will Help Americans Build Wealth for Their Retirement--
Strengthening Personal Savings and Pensions. To help supplement Social Security,
the President proposes to create USA accounts to help strengthen two legs of retirement
security: personal savings and pensions. Under the President's framework, we will
reserve 11 percent of the projected surpluses over the next 15 years -- averaging about
$33 billion per year -- to create Universal Savings Accounts (USAs), so that every
working American can build wealth and a nest egg for retirement.
We Want to Work With Congress And Experts To Determine Precisely How USA
Accounts Will Be Structured So That They Are Progressive And Help Working
Americans Save for Retirement. President Clinton believes the government should
provide most Americans with a flat contribution. In addition, the government will match
a portion of each dollar an individual puts into the account -~ with larger percentage
matches going to lower-income workers. However, we want to work with Members of
Congress and pension and personal savings experts, to ensure that USA accounts build on
the current private-sector pension system, are progressive, and help working Americans
save for their futures. Therefore, the exact size of the contributions, match rates, and
income limits will be detennined later.
MILITARY READINESS AND
OTHER CRITICAL INVESTMENTS IN AMERICA'S FUTURE
RESERVE 11 PERCENT OF THE PROJECTED SURPLUSES FOR MILITARY
READINESS AND PRESSING NATIONAL DOMESTIC PRIORITIES, SUCH AS
EDUCATION AND RESEARCH.
Ensuring That America's Military Continues to be Ready for the Challenges of the
21st Century. Early in January, President Clinton proposed a bold, new strategy to
ensure that America's military continues to be fully prepared to protect our national
interests as the world's most powerful fighting force. President Clinton believes this
approach will provide the resources to meet his proposed detailed blueprint for military
readiness.
Ensuring We Meet Other Critical Investments In America's Future. In addition to
military readiness, the setting aside of 11 percent of the projected surpluses -- nearly $500
billion -- will allow America to meet its other critical investment needs, such as education
and research.
6
==================== ATTACHMENT 1 ====================
ATT CREATION TIME/DATE: 0 00:00:00.00
TEXT:
Unable to convert ARMS_EXT: [ATTACH.D821MAIL441391917.036 to ASCII,
The following is a HEX DUMP:
FFS7S0436F230000010A0201000000020S0000002A7D000000020000EDB7378EBSSBSIB641B2F2
68DOCS1828BC263EA9A2843B4EDB955A70F4EBF6BF47C23629FE81BSFA9D6CFE9E4E9D8490043A
2S9CBSF8DD7B8129S48F70717B4DDD4EI0A7BC3S3EESCS06E084CSFA78EAOEED61D19ECS23B84A
49817389C9EB669B6B4ECBSF323SSAA140F4DCE09E94A9A31F3134S702SCEC19BE3096BACC86DC
BF882D8CIB7CCAB7A21721DECBS42D869167B683309D4BF9C8EDE3F3DCBFSC37FD247C9274473E
Hex-Dump Conversion
SAVING SOCIAL SECURITY NOW
AND
MEETING AMERICA'S CHALLENGES
FOR THR 21st CENTURY
In His State of the Union Address, President Clinton Put Forward His Framework To Save
Social Security Now, While Meeting America's Challenges for the 21st Century. The
President and Vice President's framework strengthens Social Security by:
Transferring 62 percent of the projected budget surpluses over the next 15 years -- more
than $2.7 trillion -- to the Social Security system.
Investing a portion of the transferred surpluses in the private sector to achieve higher
retums for Social Security -- just as any state or local government, or private pension does
-- after working with Congress to devise a mechanism to ensure that the investments
are made independently and without political interference. We will support using a
broad-based neutral approach managed by the private sector with minimum
administrative costs.
Keeping Social Security solvent until 2055.
Calling for a bipartisan effort to make the hard-headed but sensible and achievable
choices needed to save Social Security until at least 2075. As part of this effort,
President Clinton and Vice President Gore believe that we must:
o Reduce poverty among elderly women -- particularly widows, who have a poverty
rate nearly twice the overall poverty rate for older Americans.
o Eliminate the confusing and out-dated eamings test so that we stop discouraging
work and earnings among older Americans.
After Social Security Reform Is Secured -- Consistent With the President's "Save Social
Security First" Commitment -- the President Proposes To:
Strengthen Medicare for the 21st Century. The President's framework will reserve 15
percent ofthe projected surpluses for Medicare, ensuring the Medicare Trust Fund is secure
for 20 years. The President believes that these new resources should be used to help
achieve broader, bipartisan reforms -- which should include a prescription drug benefit.
Create New Universal Savings Accounts -- USA Accounts. The President's framework
will reserve 11 percent of the projected surpluses to create new Universal Savings
Accounts (US As) so all working Americans can build wealth to meet their retirement
needs. To help Americans save and to strengthen our current pension system, the
government will provide an equal dollar contribution for most Americans. In addition, the
government will match a portion of each additional dollar an individual puts voluntarily
into hislher USA account -- with larger matches going to lower-income workers.
Prepare America for the Challenges of the Future. The President's framework will
reserve 11 percent of the projected surpluses for military readiness and pressing national
Hex-Dump Conversion
domestic priorities, such as education and research.
'-i(j,,-2~mp Conversion
SAVE SOCIAL SECURITY NOW:
STRENGTHENING SOCIAL SECURITY FOR THE 21st CENTURY
In His State of the Union Address, President Clinton Put Forward A Framework To
Strengthen Social Security Now. Since its creation more than 60 years ago, Social
Security has been a bedrock of retirement security for Americans. There are 76 million
baby boomers looking ahead to retirement. By 2030, there will be twice as many elderly as
there are today, putting pressure on the Social Security system. After 2032, if we do
nothing, the Trust Fund will be exhausted and Social Security will have only enough
resources to cover 72 cents per dollar of promised benefits. President Clinton and Vice
President Gore believe we must act now to tackle this tough, long-term challenge. That is
why they are proposing to:
Use the Budget Surplus To Save Social Security Now
"Saving Social Security First." Last year, in his State ofthe Union Address; President
Clinton promised to save the budget surplus until we knew how much would be needed to
save Social Security for the 21 st century. This year, in his State ofthe Union Address,
President Clinton reiterated his pledge to save Social Security first -- committing to
reserve the budget surplus until Social Security reform is secured.
62 Percent of the Projected Budget Surpluses Will Be Used to Save Social Security.
President Clinton proposes to transfer 62 percent of the projected budget surpluses over
the next 15 years -- more than $2.7 trillion -- to Social Security.
Invest A Portion of the Surpluses To Achieve Higher Returns for Social Security
Invest Portion of Surpluses To Achieve Higher Returns, Working With Congress to
Devise A Mechanism to Ensure Independent and Non-Political Investments. We
want to work with Members of Congress from both sides of the aisle to craft a bipartisan
Social Security plan which invests a portion of the surplus transferred to Social Security
to achieve higher returns, and includes a mechanism to ensure that investments are
made independently and without political interference. We will support using a
broad-based neutral approach managed by the private sector with minimum
administrative costs.
o To achieve higher returns for Social Security, less than one-quarter of the
transferred surpluses will be invested in the stock market.
Save Social Security Until 2055 -- And Work Together To Save It Until At Least 2075
President's Framework Keeps Social Security Solvent Through 2055. By transferring
62 percent of the projected surpluses for the next 15 years to Social Security and investing a
portion of them in the market -- just like any private or state or local government pension
3
f icx-tJump ConvGision
does -- we will ensure that Social Security is on sound footing for 55 years -- until 2055.
Must Work Together -- Across Party Lines -- To Make Hard-Headed, But Sensible
and Achievable Choices To Save Social Security for 75 Years. President Clinton's
goal is to save Social Security for 75 years. To do so, he believes we must work together
in a bipartisan way to make the hard-headed, but sensible and achievable choices to save
Social Security through at least 2075.
Publicly Held Debt Will Fall To Lowest As Share of GDP Since 1917
Turning Around America's Fiscal Position. Under Presidents Reagan and Bush, the
debt held by the public quadrupled, rising from $785 billion in 1981 to $3.2 trillion in
1993. As a share ofthe economy, the publicly held debt increased from 26 percent in
1981 to 50 percent in 1993. Since President Clinton took office, the publicly held debt
as a share of GDP has dropped to about 45 percent. .
Debt-to-GDP Ratio Will Fall to Lowest Level Since 1917. Under the President's
framework, current projections suggest that the publicly held debt, as a share ofGDP,
will fall from about 45 percent today to less than 10 percent in 2014 -- its lowest level
since 1917.
Reduce Poverty Among Elderly Women -- Particularly Widows
Poverty Rates Among Elderly Women -- Particularly Widows -- Remain High. The
poverty rate for all elderly women was 13.1 percent in 1997. For widowed women, poverty
rates are especially high: the poverty rate is 18.0 percent for widowed women -- nearly four
times the poverty rate of married women (4.6 percent) and much higher than the poverty rate
of widowed men (11.4 percent).
President's Framework Would Lower Poverty Rates Among Elderly Women--
Especially Widows. Currently, widow benefits vary from 50 to 67 percent of benefits
for a married couple when both members were alive. The official poverty thresholds
imply that a widow needs over 75 percent of a couple's income to maintain her
pre-widowhood consumption. This is a key reason why widow poverty is so much
higher than overall elderly poverty. The President is committed to reducing the loss of
Social Security income at widowhood.
Eliminate the Out-Dated and Confusing Earnings Test
President Clinton Believes We Should Eliminate The Earnings Test. President
Clinton believes that the earnings test has outlived its use. Today, it primarily serves to
confuse people, and to discourage them from working. We want to work with Members
of Congress to eliminate the earnings test as part of a comprehensive package to
strengthen Social Security for the 21st century.
4
Hex-Dump Conv,,;sion
Earnings Test Should Be Eliminated Because It Is Out-Dated And Confusing -- And
It Discourages Work and Earnings Among the Elderly. The Social Security earnings
test is a confusing relic of a past era. It discourages the elderly from working. It is
administratively complicated; administering the eamings test imposes significant
administrative burden on the Social Security Administration. Finally, eliminating the
earnings limit would have almost no effect on the long-run actuarial balance of the Social
Security system.
MEETING AMERICA'S CHALLENGES
FOR THE 21st CENTURY
After Social Security Reform Is Secured -- Consistent With the President's "Save Social
Security First" Commitment -- The President Proposes To Meet The Following Three
Challenges:
STRENGTHENING MEDICARE FOR THE 21st CENTURY
RESERVE 15 PERCENT OF THE PROJECTED SURPLUSES FOR MEDICARE,
EXTENDING THE LIFE OF THE MEDICARE TRUST FUND UNTIL 2020.
We Must Prepare for the Health Care Challenges of the Next Century. In its
30-year history, Medicare has contributed to longer lives and better lives for America's
elderly and disabled. However, Medicare -- like Social Security -- will be impacted by
the tidal wave of the "Senior Boom." Its emollment is expected to double by 2030. In
addition, Medicare -- as well as tqe private sector -- faces escalating health care costs.
As a result, the Medicare Trust Fund is expected to run out in 2008, ifno actions are
taken.
Reserving Nearly One in Six Dollars of Surplus to Help Keep Medicare Safe Until
2020. The President's framework would reserve 15 percent of the projected surpluses--
$650-$700 billion -- over the next 15 years for the Medicare Trust Fund. These funds
would be prohibited from being used for any other purpose, ensuring that the money will
go to help the health care needs of older and disabled Americans. Even in the absence of
broader reforms, the President's framework would guarantee that Medicare can continue
to provide its critical health services until 2020 -- doubling the life of the Medicare Trust
Fund and providing the strongest outlook in the last 25 years.
New Funds Should Be Used To Help Achieve Broader, Bipartisan Reform. The
President believes that the Medicare Commission and Congress should utilize these new
dedicated dollars as part of broader, bipartisan reforms. Such reforms, including the
development of a long-overdue prescription drug benefit, are essential to provide efficient
health care to the elderly and people with disabilities in the 21st century.
5
Hex-Dump ConvGi'sion
UNIVERSAL SAVINGS ACCOUNTS (USAs)
RESERVE 11 PERCENT OF THE PROJECTED SURPLUSES TO CREATE NEW
UNIVERSAL SAVINGS ACCOUNTS (USAs) SO EVERY WORKING AMERICAN CAN
BUILD WEALTH AND A NEST EGG TO MEET THEIR RETIREMENT NEEDS.
USA Accounts Will Help Americans Build Wealth for Their Retirement--
Strengthening Personal Savings and Pensions. To help supplement Social Security,
the President proposes to create USA accounts to help strengthen two legs of retirement
security: personal savings and pensions. Under the President's framework, we will
reserve 11 percent of the projected surpluses over the next 15 years -- averaging about
$33 billion per year -- to create Universal Savings Accounts (USAs), so that every
working American can build wealth and a nest egg for retirement.
We Want to Work With Congress And Experts To Determine Precisely How USA
Accounts Will Be Structured So That They Are Progressive And Help Working
Americans Save for Retirement. President Clinton believes the government should
provide most Americans with a flat contribution. In addition, the government will match
a portion of each dollar an individual puts into the account -~ with larger percentage
matches going to lower-income workers. However, we want to work with Members of
Congress and pension and personal savings experts, to ensure that USA accounts build on
the current private-sector pension system, are progressive, and help working Americans
save for their futures. Therefore, the exact size of the contributions, match rates, and
income limits will be detennined later.
MILITARY READINESS AND
OTHER CRITICAL INVESTMENTS IN AMERICA'S FUTURE
RESERVE 11 PERCENT OF THE PROJECTED SURPLUSES FOR MILITARY
READINESS AND PRESSING NATIONAL DOMESTIC PRIORITIES, SUCH AS
EDUCATION AND RESEARCH.
Ensuring That America's Military Continues to be Ready for the Challenges of the
21st Century. Early in January, President Clinton proposed a bold, new strategy to
ensure that America's military continues to be fully prepared to protect our national
interests as the world's most powerful fighting force. President Clinton believes this
approach will provide the resources to meet his proposed detailed blueprint for military
readiness.
Ensuring We Meet Other Critical Investments In America's Future. In addition to
military readiness, the setting aside of 11 percent of the projected surpluses -- nearly $500
billion -- will allow America to meet its other critical investment needs, such as education
and research.
6
Unable to convert ARMS_EXT: [ATTACH.D821MAIL441391917.036 to ASCII,
The following is a HEX DUMP:
FF5750436F230000010A020100000002050000002A7D000000020000EDB7378EB55B51B641B2F2
68DOC51828BC263EA9A2843B4EDB955A70F4EBF6BF47C23629FE81B5FA9D6CFE9E4E9D8490043A
259CB5F8DD7B8129548F70717B4DDD4El0A7BC353EE5C506E084C5FA78EAOEED61D19EC523B84A
Hex-Dump Conversion
SAVING SOCIAL SECURITY NOW
AND
MEETING AMERICA'S CHALLENGES
FOR THE 21st CENTURY
In His State of the Union Address, President Clinton Put Forward His Framework To Save
Social Security Now, While Meeting America's Challenges for the 21st Century. The
President and Vice President's framework strengthens Social Security by:
Transferring 62 percent of the projected budget surpluses over the next 15 years -- more
than $2.7 trillion -- to the Social Security system.
Investing a portion of the transferred surpluses in the private sector to achieve higher
returns for Social Security -- just as any state or local government, or private pension does
-- after working with Congress to devise a mechanism to ensure that the investments
are made independently and without political interference. We will support using a
broad-based neutral approach managed by the private sector with minimum
administrative costs.
Keeping Social Security solvent until 2055.
Calling for a bipartisan effort to make the hard-headed but sensible and achievable
choices needed to save Social Security until at least 2075. As part of this effort,
President Clinton and Vice President Gore believe that we must:
o Reduce poverty among elderly women -- particularly widows, who have a poverty
rate nearly twice the overall poverty rate for older Americans.
o Eliminate the confusing and out-dated earnings test so that we stop discouraging
work and earnings among older Americans.
After Social Security Reform Is Secured -- Consistent With the President's "Save Social
Security First" Commitment -- the President Proposes To:
Strengthen Medicare for the 21st Century. The President's framework will reserve 15
percent of the projected surpluses for Medicare, ensuring the Medicare Trust Fund is secure
for 20 years. The President believes that these new resources should be used to help
achieve broader, bipartisan reforms -- which should include a prescription drug benefit.
Create New Universal Savings Accounts -- USA Accounts. The President's framework
will reserve 11 percent of the projected surpluses to create new Universal Savings
Accounts (USAs) so all working Americans can build wealth to meet their retirement
needs. To help Americans save and to strengthen our current pension system, the
government will provide an equal dollar contribution for most Americans, In addition, the
government will match a portion of each additional dollar an individual puts voluntarily
into hislher USA account -- with larger matches going to lower-income workers.
Prepare America for the Challenges of the Future. The President's framework will
reserve 11 percent of the projected surpluses for military readiness and pressing national
Automated Records Management System
Hex-Dump Conversion
!jex-Dump Conversion
SAVE SOCIAL SECURITY NOW:
STRENGTHENING SOCIAL SECURITY FOR THE 21st CENTURY
In His State of the Union Address, President Clinton Put Forward A Framework To
Strengthen Social Security Now. Since its creation more than 60 years ago, Social
Security has been a bedrock of retirement security for Americans. There are 76 million
baby boomers looking ahead to retirement. By 2030, there will be twice as many elderly as
there are today, putting pressure on the Social Security system. After 2032, if we do
nothing, the Trust Fund will be exhausted and Social Security will have only enough
resources to cover 72 cents per dollar of promised benefits. President Clinton and Vice
President Gore believe we must act now to tackle this tough, long-term challenge. That is
why they are proposing to:
Use the Budget Surplus To Save Social Security Now
"Saving Social Security First." Last year, in his State of the Union Address, President
Clinton promised to save the budget surplus until we knew how much would be needed to
save Social Security for the 21 st century. This year, in his State of the Union Address,
President Clinton reiterated his pledge to save Social Security first -- committing to
reserve the budget surplus until Social Security refonn is secured.
62 Percent of the Projected Budget Surpluses Will Be Used to Save Social Security.
President Clinton proposes to transfer 62 percent of the projected budget surpluses over
the next 15 years -- more than $2.7 trillion -- to Social Security.
Invest A Portion of the Surpluses To Achieve Higher Returns for Social Security
Invest Portion of Surpluses To Achieve Higher Returns, Working With Congress to
Devise A Mechanism to Ensure Independent and Non-Political Investments. We
want to work with Members of Congress from both sides of the aisle to craft a bipartisan
Social Security plan which invests a portion of the surplus transferred to Social Security
to achieve higher returns, and includes a mechanism to ensure that investments are
made independently and without political interference. We will support using a
broad-based neutral approach managed by the private sector with minimum
administrative costs.
o To achieve higher returns for Social Security, less than one-quarter of the
transferred surpluses will be invested in the stock market.
Save Social Security Until 2055 -- And Work Together To Save It Until At Least 2075
President's Framework Keeps Social Security Solvent Through 2055. By transferring
62 percent of the projected surpluses for the next 15 years to Social Security and investing a
portion ofthem in the market -- just like any private or state or local government pension
3
Hex-Dump Conversion
does -- we will ensure that Social Security is on sound footing for 55 years -- until 2055.
Must Work Together -- Across Party Lines -- To Make Hard-Headed, But Sensible
and Achievable Choices To Save Social Security for 75 Years. President Clinton's
goal is to save Social Security for 75 years. To do so, he believes we must work together
in a bipartisan way to make the hard-headed, but sensible and achievable choices to save
Social Security through at least 2075.
Publicly Held Debt Will Fall To Lowest As Share of GDP Since 1917
Turning Around America's Fiscal Position. Under Presidents Reagan and Bush, the
debt held by the public quadrupled, rising from $785 billion in 1981 to $3.2 trillion in
1993. As a share of the economy, the publicly held debt increased from 26 percent in
1981 to 50 percent in 1993. Since President Clinton took office, the publicly held debt
as a share of GDP has dropped to about 45 percent.
Debt-to-GDP Ratio Will Fall to Lowest Level Since 1917. Under the President's
framework, current projections suggest that the publicly held debt, as a share of GDP,
will fall from about 45 percent today to less than 10 percent in 2014 -- its lowest level
since 1917.
Reduce Poverty Among Elderly Women -- Particularly Widows
Poverty Rates Among Elderly Women -- Particularly Widows -- Remain High. The
poverty rate for all elderly women was 13.1 percent in 1997. For widowed women, poverty
rates are especially high: the poverty rate is 18.0 percent for widowed women -- nearly four
times the poverty rate of married women (4.6 percent) and much higher than the poverty rate
of widowed men (11.4 percent).
President's Framework Would Lower Poverty Rates Among Elderly Women--
Especially Widows. Currently, widow benefits vary from 50 to 67 percent of benefits
for a married couple when both members were alive. The official poverty thresholds
imply that a widow needs over 75 percent of a couple's income to maintain her
pre-widowhood consumption. This is a key reason why widow poverty is so much
higher than overall elderly poverty. The President is committed to reducing the loss of
Social Security income at widowhood.
Eliminate the Out-Dated and Confusing Earnings Test
President Clinton Believes We Should Eliminate The Earnings Test.. President
Clinton believes that the earnings test has outlived its use. Today, it primarily serves to
confuse people, and to discourage them from working. We want to work with Members
of Congress to eliminate the earnings test as part of a comprehensive package to
strengthen Social Security for the 21 st century.
4
Hex-Dump Conversion
Earnings Test Should Be Eliminated Because It Is Out-Dated And Confusing -- And
It Discourages Work and Earnings Among the Elderly. The Social Security earnings
test is a confusing relic of a past era. It discourages the elderly from working. It is
administratively complicated; administering the earnings test imposes significant
administrative burden on the Social Security Administration. Finally, eliminating the
earnings limit would have almost no effect on the long-run actuarial balance of the Social
Security system.
MEETING AMERICA'S CHALLENGES
FOR THE 21st CENTURY
After Social Security Reform Is Secured -- Consistent With the President's "Save Social
Security First" Commitment -- The President Proposes To Meet The Following Three
Challenges:
STRENGTHENING MEDICARE FOR THE 21st CENTURY
RESERVE 15 PERCENT OF THE PROJECTED SURPLUSES FOR MEDICARE,
EXTENDING THE LIFE OF THE MEDICARE TRUST FUND UNTIL 2020.
We Must Prepare for the Health Care Challenges of the Next Century. In its
30-year history, Medicare has contributed to longer lives and better lives for America's
elderly and disabled. However, Medicare -- like Social Security -- will be impacted by
the tidal wave of the "Senior Boom." Its enrollment is expected to double by 2030. In
addition, Medicare -- as well as the private sector -- faces escalating health care costs.
As a result, the Medicare Tru~t Fund is expected to run out in 2008, if no actions are
taken.
Reserving Nearly One in Six Dollars of Surplus to Help Keep Medicare Safe Until
2020. The President's framework would reserve 15 percent of the projected surpluses--
$650-$700 billion -- over the next 15 years for the Medicare Trust Fund. These funds
would be prohibited from being used for any other purpose, ensuring that the money will
go to help the health care needs of older and disabled Americans. Even in the absence of
broader reforms, the President's framework would guarantee that Medicare can continue
to provide its critical health services until 2020 -- doubling the life of the Medicare Trust
Fund and providing the strongest outlook in the last 25 years.
New Funds Should Be Used To Help Achieve Broader, Bipartisan Reform. The
President believes that the Medicare Commission and Congress should utilize these new
dedicated dollars as part of broader, bipartisan reforms. Such reforms, including the
development of a long-overdue prescription drug benefit, are essential to provide efficient
health care to the elderly and people with disabilities in the 21 st century.
5
Hex-Dump Conversion
UNIVERSAL SAVINGS ACCOUNTS (USAs)
RESERVE 11 PERCENT OF THE PROJECTED SURPLUSES TO CREATE NEW
UNIVERSAL SAVINGS ACCOUNTS (USAs) SO EVERY WORKING AMERICAN CAN
BUILD WEALTH AND A NEST EGG TO MEET THEIR RETIREMENT NEEDS.
USA Accounts Will Help Americans Build Wealth for Their Retirement--
Strengthening Personal Savings and Pensions. To help supplement Social Security,
the President proposes to create USA accounts to help strengthen two legs of retirement
security: personal savings and pensions. Under the President's framework, we will
reserve 11 percent of the projected surpluses over the next 15 years -- averaging about
$33 billion per year -- to create Universal Savings Accounts (USAs), so that every
working American c~n build wealth and a nest egg for retirement.
We Want to Work With Congress And Experts To Determine Precisely How USA
Accounts Will Be Structured So That They Are Progressive And Help Working
Americans Save for Retirement. President Clinton believes the government should
provide most Americans with a flat contribution. In addition, the government will match
a portion of each dollar an individual puts into the account -- with larger percentage
matches going to lower-income workers. However, we want to work with Members of
Congress and pension and personal savings experts, to ensure that USA accounts build on
the current private-sector pension system, are progressive, and help working Americans
save for their futures. Therefore, the exact size of the contributions, match rates, and
income limits will be determined later.
MILITARY READINESS AND
OTHER CRITICAL INVESTMENTS IN AMERICA'S FUTURE
RESERVE 11 PERCENT OF THE PROJECTED SURPLUSES FOR MILITARY
READINESS AND PRESSING NATIONAL DOMESTIC PRIORITIES, SUCH AS
EDUCATION AND RESEARCH.
Ensuring That America's Military Continues to be Ready for the Challenges of the
21st Century. Early in January, President Clinton proposed a bold, new strategy to
ensure that America's military continues to be fully prepared to protect our national
interests as the world's most powerful fighting force. President Clinton believes this
approach will provide the resources to meet his proposed detailed blueprint for military
readiness.
Ensuring We Meet Other Critical Investments In America's Future. In addition to
military readiness, the setting aside of 11 percent of the projected surpluses -- nearly $500
billion -- will allow America to meet its other critical investment needs, such as education
and research.
6
==================== ATTACHMENT 1 ====================
ATT CREATION TIME/DATE: 0 00:00:00.00
TEXT:
Unable to convert ARMS_EXT: [ATTACH.D821MAIL441391917.036 to ASCII,
The following is a HEX DUMP:
FF5750436F230000010A020100000002050000002A7D000000020000EDB7378EB55B51B641B2F2
68DOC51828BC263EA9A2843B4EDB955A70F4EBF6BF47C23629FE81B5FA9D6CFE9E4E9D8490043A
259CB5F8DD7B8129548F70717B4DDD4El0A7BC353EE5C506E084C5FA78EAOEED61D19EC523B84A
Hex-Dump Conversion
SAVING SOCIAL SECURITY NOW
AND
MEETING AMERICA'S CHALLENGES
FOR THE 21st CENTURY
In His State of the Union Address, President Clinton Put Forward His Framework To Save
Social Security Now, While Meeting America's Challenges for the 21st Century. The
President and Vice President's framework strengthens Social Security by:
Transferring 62 percent of the projected budget surpluses over the next 15 years -- more
than $2.7 trillion -- to the Social Security system.
Investing a portion of the transferred surpluses in the private sector to achieve higher
returns for Social Security -- just as any state or local government, or private pension does
-- after working with Congress to devise a mechanism to ensure that the investments
are made independently and without political interference. We will support using a
broad-based neutral approach managed by the private sector with minimum
administrative costs.
Keeping Social Security solvent until 2055.
Calling for a bipartisan effort to make the hard-headed but sensible and achievable
choices needed to save Social Security until at least 2075. As part of this effort,
President Clinton and Vice President Gore believe that we must:
o Reduce poverty among elderly women -- particularly widows, who have a poverty
rate nearly twice the overall poverty rate for older Americans.
o Eliminate the confusing and out-dated earnings test so that we stop discouraging
work and earnings among older Americans.
After Social Security Reform Is Secured -- Consistent With the President's "Save Social
Security First" Commitment -- the President Proposes To:
Strengthen Medicare for the 21st Century. The President's framework will reserve 15
percent of the projected surpluses for Medicare, ensuring the Medicare Trust Fund is secure
for 20 years. The President believes that these new resources should be used to help
achieve broader, bipartisan reforms -- which should include a prescription drug benefit.
Create New Universal Savings Accounts -- USA Accounts. The President's framework
will reserve 11 percent of the projected surpluses to create new Universal Savings
Accounts (USAs) so all working Americans can build wealth to meet their retirement
needs. To help Americans save and to strengthen our current pension system, the
government will provide an equal dollar contribution for most Americans, In addition, the
government will match a portion of each additional dollar an individual puts voluntarily
into hislher USA account -- with larger matches going to lower-income workers.
Prepare America for the Challenges of the Future. The President's framework will
reserve 11 percent of the projected surpluses for military readiness and pressing national
Automated Records Management System
Hex-Dump Conversion
!jex-Dump Conversion
SAVE SOCIAL SECURITY NOW:
STRENGTHENING SOCIAL SECURITY FOR THE 21st CENTURY
In His State of the Union Address, President Clinton Put Forward A Framework To
Strengthen Social Security Now. Since its creation more than 60 years ago, Social
Security has been a bedrock of retirement security for Americans. There are 76 million
baby boomers looking ahead to retirement. By 2030, there will be twice as many elderly as
there are today, putting pressure on the Social Security system. After 2032, if we do
nothing, the Trust Fund will be exhausted and Social Security will have only enough
resources to cover 72 cents per dollar of promised benefits. President Clinton and Vice
President Gore believe we must act now to tackle this tough, long-term challenge. That is
why they are proposing to:
Use the Budget Surplus To Save Social Security Now
"Saving Social Security First." Last year, in his State of the Union Address, President
Clinton promised to save the budget surplus until we knew how much would be needed to
save Social Security for the 21 st century. This year, in his State of the Union Address,
President Clinton reiterated his pledge to save Social Security first -- committing to
reserve the budget surplus until Social Security refonn is secured.
62 Percent of the Projected Budget Surpluses Will Be Used to Save Social Security.
President Clinton proposes to transfer 62 percent of the projected budget surpluses over
the next 15 years -- more than $2.7 trillion -- to Social Security.
Invest A Portion of the Surpluses To Achieve Higher Returns for Social Security
Invest Portion of Surpluses To Achieve Higher Returns, Working With Congress to
Devise A Mechanism to Ensure Independent and Non-Political Investments. We
want to work with Members of Congress from both sides of the aisle to craft a bipartisan
Social Security plan which invests a portion of the surplus transferred to Social Security
to achieve higher returns, and includes a mechanism to ensure that investments are
made independently and without political interference. We will support using a
broad-based neutral approach managed by the private sector with minimum
administrative costs.
o To achieve higher returns for Social Security, less than one-quarter of the
transferred surpluses will be invested in the stock market.
Save Social Security Until 2055 -- And Work Together To Save It Until At Least 2075
President's Framework Keeps Social Security Solvent Through 2055. By transferring
62 percent of the projected surpluses for the next 15 years to Social Security and investing a
portion ofthem in the market -- just like any private or state or local government pension
3
Hex-Dump Conversion
does -- we will ensure that Social Security is on sound footing for 55 years -- until 2055.
Must Work Together -- Across Party Lines -- To Make Hard-Headed, But Sensible
and Achievable Choices To Save Social Security for 75 Years. President Clinton's
goal is to save Social Security for 75 years. To do so, he believes we must work together
in a bipartisan way to make the hard-headed, but sensible and achievable choices to save
Social Security through at least 2075.
Publicly Held Debt Will Fall To Lowest As Share of GDP Since 1917
Turning Around America's Fiscal Position. Under Presidents Reagan and Bush, the
debt held by the public quadrupled, rising from $785 billion in 1981 to $3.2 trillion in
1993. As a share of the economy, the publicly held debt increased from 26 percent in
1981 to 50 percent in 1993. Since President Clinton took office, the publicly held debt
as a share of GDP has dropped to about 45 percent.
Debt-to-GDP Ratio Will Fall to Lowest Level Since 1917. Under the President's
framework, current projections suggest that the publicly held debt, as a share of GDP,
will fall from about 45 percent today to less than 10 percent in 2014 -- its lowest level
since 1917.
Reduce Poverty Among Elderly Women -- Particularly Widows
Poverty Rates Among Elderly Women -- Particularly Widows -- Remain High. The
poverty rate for all elderly women was 13.1 percent in 1997. For widowed women, poverty
rates are especially high: the poverty rate is 18.0 percent for widowed women -- nearly four
times the poverty rate of married women (4.6 percent) and much higher than the poverty rate
of widowed men (11.4 percent).
President's Framework Would Lower Poverty Rates Among Elderly Women--
Especially Widows. Currently, widow benefits vary from 50 to 67 percent of benefits
for a married couple when both members were alive. The official poverty thresholds
imply that a widow needs over 75 percent of a couple's income to maintain her
pre-widowhood consumption. This is a key reason why widow poverty is so much
higher than overall elderly poverty. The President is committed to reducing the loss of
Social Security income at widowhood.
Eliminate the Out-Dated and Confusing Earnings Test
President Clinton Believes We Should Eliminate The Earnings Test.. President
Clinton believes that the earnings test has outlived its use. Today, it primarily serves to
confuse people, and to discourage them from working. We want to work with Members
of Congress to eliminate the earnings test as part of a comprehensive package to
strengthen Social Security for the 21 st century.
4
Hex-Dump Conversion
Earnings Test Should Be Eliminated Because It Is Out-Dated And Confusing -- And
It Discourages Work and Earnings Among the Elderly. The Social Security earnings
test is a confusing relic of a past era. It discourages the elderly from working. It is
administratively complicated; administering the earnings test imposes significant
administrative burden on the Social Security Administration. Finally, eliminating the
earnings limit would have almost no effect on the long-run actuarial balance of the Social
Security system.
MEETING AMERICA'S CHALLENGES
FOR THE 21st CENTURY
After Social Security Reform Is Secured -- Consistent With the President's "Save Social
Security First" Commitment -- The President Proposes To Meet The Following Three
Challenges:
STRENGTHENING MEDICARE FOR THE 21st CENTURY
RESERVE 15 PERCENT OF THE PROJECTED SURPLUSES FOR MEDICARE,
EXTENDING THE LIFE OF THE MEDICARE TRUST FUND UNTIL 2020.
We Must Prepare for the Health Care Challenges of the Next Century. In its
30-year history, Medicare has contributed to longer lives and better lives for America's
elderly and disabled. However, Medicare -- like Social Security -- will be impacted by
the tidal wave of the "Senior Boom." Its enrollment is expected to double by 2030. In
addition, Medicare -- as well as the private sector -- faces escalating health care costs.
As a result, the Medicare Tru~t Fund is expected to run out in 2008, if no actions are
taken.
Reserving Nearly One in Six Dollars of Surplus to Help Keep Medicare Safe Until
2020. The President's framework would reserve 15 percent of the projected surpluses--
$650-$700 billion -- over the next 15 years for the Medicare Trust Fund. These funds
would be prohibited from being used for any other purpose, ensuring that the money will
go to help the health care needs of older and disabled Americans. Even in the absence of
broader reforms, the President's framework would guarantee that Medicare can continue
to provide its critical health services until 2020 -- doubling the life of the Medicare Trust
Fund and providing the strongest outlook in the last 25 years.
New Funds Should Be Used To Help Achieve Broader, Bipartisan Reform. The
President believes that the Medicare Commission and Congress should utilize these new
dedicated dollars as part of broader, bipartisan reforms. Such reforms, including the
development of a long-overdue prescription drug benefit, are essential to provide efficient
health care to the elderly and people with disabilities in the 21 st century.
5
Hex-Dump Conversion
UNIVERSAL SAVINGS ACCOUNTS (USAs)
RESERVE 11 PERCENT OF THE PROJECTED SURPLUSES TO CREATE NEW
UNIVERSAL SAVINGS ACCOUNTS (USAs) SO EVERY WORKING AMERICAN CAN
BUILD WEALTH AND A NEST EGG TO MEET THEIR RETIREMENT NEEDS.
USA Accounts Will Help Americans Build Wealth for Their Retirement--
Strengthening Personal Savings and Pensions. To help supplement Social Security,
the President proposes to create USA accounts to help strengthen two legs of retirement
security: personal savings and pensions. Under the President's framework, we will
reserve 11 percent of the projected surpluses over the next 15 years -- averaging about
$33 billion per year -- to create Universal Savings Accounts (USAs), so that every
working American c~n build wealth and a nest egg for retirement.
We Want to Work With Congress And Experts To Determine Precisely How USA
Accounts Will Be Structured So That They Are Progressive And Help Working
Americans Save for Retirement. President Clinton believes the government should
provide most Americans with a flat contribution. In addition, the government will match
a portion of each dollar an individual puts into the account -- with larger percentage
matches going to lower-income workers. However, we want to work with Members of
Congress and pension and personal savings experts, to ensure that USA accounts build on
the current private-sector pension system, are progressive, and help working Americans
save for their futures. Therefore, the exact size of the contributions, match rates, and
income limits will be determined later.
MILITARY READINESS AND
OTHER CRITICAL INVESTMENTS IN AMERICA'S FUTURE
RESERVE 11 PERCENT OF THE PROJECTED SURPLUSES FOR MILITARY
READINESS AND PRESSING NATIONAL DOMESTIC PRIORITIES, SUCH AS
EDUCATION AND RESEARCH.
Ensuring That America's Military Continues to be Ready for the Challenges of the
21st Century. Early in January, President Clinton proposed a bold, new strategy to
ensure that America's military continues to be fully prepared to protect our national
interests as the world's most powerful fighting force. President Clinton believes this
approach will provide the resources to meet his proposed detailed blueprint for military
readiness.
Ensuring We Meet Other Critical Investments In America's Future. In addition to
military readiness, the setting aside of 11 percent of the projected surpluses -- nearly $500
billion -- will allow America to meet its other critical investment needs, such as education
and research.
6
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