News Release

October 14, 2004

Media Contact: (202) 789-5200

Cato Scholar: Kerry offers no solution to Social Security crisis

WASHINGTON -- Michael Tanner, director of the Cato Institute's Project on Social Security Choice, made the following statement in response to Sen. John Kerry's comments during last night's debate and today's speech at the AARP national convention in Las Vegas:

"Sen. Kerry still offers no solution to Social Security's looming financial crisis. The national retirement program will begin running deficits in less than 15 years, and is facing unfunded liabilities of more than $26 trillion, yet Sen. Kerry continues to resist all efforts at reform. As former President Bill Clinton pointed out, there are really only three solutions to Social Security's problems: raise taxes, cut benefits, or invest privately. Sen. Kerry has ruled out any private investment or benefit cuts. Does that mean he is endorsing a stealth tax increase? The only real solution to the Social Security crisis is to allow younger workers to privately invest their Social Security taxes through individual accounts."

Tanner is the author of "The 6.2 Percent Solution: A Plan for Reforming Social Security." A bill based on Tanner's plan was introduced in Congress in July. He is available for additional comment on Social Security reform. Please contact the media relations department at 202-789-5200 to arrange an interview.