Clinton: Boost Social Security Fund
WASHINGTON (AP) _ President Clinton will propose in his State of the Union address tonight to use most of the government budget surplus to bolster Social Security and create new 401(k)-style retirement accounts for most American workers.
The president also will propose using some of the surplus money to support the ailing Medicare system, and spending another 11 percent for military and other domestic programs.
Clinton’s proposal includes no income tax cuts and thus is certain to set up conflicts with many Republicans who want the budget surplus spent, at least in part, to reduce taxes.
``The president is saying through his plan that by saving instead of squandering the surpluses brought on by our discipline and prosperity, we can address much of our long-term retirement challenge in a way that lifts that burden off our children and grandchildren,″ said White House economic adviser Gene Sperling.
Clinton’s proposals would commit more than $4 trillion in budget surpluses expected by the federal government over the next 15 years. The surpluses are the result of spending curbs lawmakers set in the 1997 balanced-budget act and tax revenue flowing from the healthy U.S. economy.