March 26, 2008 - 16:07
News: Oregon

Novick advances funding for Social Secuirty

Steve Novick today equated Jeff Merkley and Sen. Gordon Smith’s views on Social Security, and emphasized his own willingness to advocate for measures, that, according to his campaign, will “prevent a federal fiscal train wreck and exposed the intellectual bankruptcy of both Gordon Smith's and Jeff Merkley's approach to federal finances.”

Merkley has said that Social Security will be solvent through 2041, claiming that the Bush administration’s plans to privatize the system a “manufactured threat.” 

“I am so disappointed that Steve has taken the Republican bait on that issue. The tax does not need to be increased,” Merkley said at a debate earlier this month.

Republican bait or not, Novick continued to advocate for tax increases on incomes of over $1 million and those who make a living on the stock market in order to fund the program. He invoked a report released yesterday by the trustees of Social Security and Medicare, which indicated that benefit payments will start exceeding Social Security tax revenues in 2017. If the government repays the money is has borrowed from the Medicare and Social Security trust funds with interest, the Social Security fund will be solvent until 2041, albeit unable to pay full promised benefits. 

Novick is pessimistic about the possibility.

 "Can we really expect the Federal government to repay on time, and with interest, what it has borrowed from Social Security and Medicare? Not under current policies without savage cuts to other essential services," he said in a statement.

Lauren Lafaro can be reached via email at noreply@politicker.com.

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