Representative Tony Esposito, Illinois, 19th District:

I want to take this opportunity to thank you for contacting me regarding your interest in protecting and preserving Social Security.

Like you, I believe that we need to do all we can to ensure that the program is protected for today's recipients and strengthened for tomorrow's. Since coming to Congress a few years ago, I have consistently worked to do just that.

Social Security is financed today by a 12.4 percent corporate payroll tax with both the employer and the employee contributing 6.2 percent each. Those who are self-employed pay both portions to reach the full 12.4 percent. We are currently using a system that is "pay-go", which means that today's worker is actually paying, through these taxes, the Social Security benefit for today's retirees. Back in the 1960s, there were 16 workers paying into Social Security for every person receiving benefits. Today, slightly more than 3 workers pay into Social Security for every person receiving benefits. By the time today's young workers retire, there will be only 2 workers to support each person on Social Security.

Due to changes in our population, the retirement of the Baby Boomer generation, and other factors, the current Social Security system will begin to run a deficit in 2018 and will be insolvent by 2042. We have an obligation to protect the system for Americans who have paid into it for decades.

President Bush and his Social Security commission have begun to debate various options for reforming the Social Security system. The proposal of "Personal Accounts" would allow for the voluntary investment of a portion of an individual's Social Security payroll taxes into a simple savings plan---similar to the Thrift Savings Plan that is available for Federal government employees. It is important to note, however, that no definitive proposal has been set forward as legislation. The most important aspect of any reform must protect and guarantee current retirees' benefits while also improving the current system so our children and grandchildren will have some assurance that Social Security will be there for them when they retire.

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