SENATE MEMORIAL 16

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Clinton D. Harden

A MEMORIAL

REQUESTING THAT THE CONGRESSIONAL DELEGATION OF THE STATE OF NEW MEXICO WORK TO PASS LEGISLATION PROVIDING FOR SOCIAL SECURITY PERSONAL RETIREMENT ACCOUNTS.

     WHEREAS, demographic changes and increasing costs will deplete the finances of the existing federal social security system; and

     WHEREAS, without significant changes to the system, costs will exceed revenues beginning in 2018 and will result in the trust fund becoming completely exhausted by 2042; and

     WHEREAS, to maintain the system without reform will require a fifty percent tax increase on each working American or a thirty percent social security benefit cut; and

     WHEREAS, social security provides a below market average rate of return of one and one-half percent that further contributes to the system's financial problems; and

     WHEREAS, allowing younger workers to divert a portion of their payroll taxes to a personal retirement account will ensure a higher retirement benefit without the need to raise taxes or cut benefits; and

     WHEREAS, allowing younger workers to invest a portion of their payroll taxes in a personal retirement account will eventually eliminate the ten trillion dollars ($10,000,000,000,000) of unfunded social security liabilities;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the state's congressional delegation be requested not to support increases in payroll taxes and cuts to social security benefits and be requested to support optional social security personal retirement accounts; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to all members of the state's congressional delegation.

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