Alan R.

Davis
370 Braewood Drive Chillicothe, OH 45601 740-775-5778 adrockchalk@gmail.com There are two ways to conquer and enslave a nation. One is by sword. The other is by debt. John Adams 1826

February 25, 2012

Sec. Timothy Geithner Treasury Department 1500 Pennsylvania Ave., NW Washington, DC 20220 Sec. Kathleen Sebelius Dept. of Health & HS 200 Independence Ave, SW Washington, DC 20201 Sec. Hilda L. Solis Dept. of Labor 200 Constitution Ave. NW Washington, DC 20210

Re: WH OMB 2013 Social Security Projections

Dear Social Security and Medicare Trust Fund Trustees, Since no one in Washington is talking about it, I thought I should write and point out something quite alarming just in case youve missed it. I hope this will be informative and that you will take immediate action considering your responsibility for the Social Security trust funds. The White House, through its Office of Management and Budget, recently (February 13th) released their estimate for 2012 and their projections for 2013 2022. If you havent taken a look at it yet, you might want to check out Table S-5 on page 210. That table is titled Proposed Budget by Category and shows their projections for the Nations Social Security Outlays and Receipts for 2013 - 2022. The figures they show under the Totals 2013 2022 column are as follows: Social Security Outlays Social Security Payroll Tax Receipts $10,699 billion $ 9,113 billion

That means theyre showing: Payroll Tax Receipt Shortfall $ 1,586 billion

By comparison, they showed a shortfall of $216 billion in the 2010 budget. So in just 3 years, their projection for the following ten year shortfall has increased $1,370 billion! With the Social Security trust funds only containing approximately $2.5 trillion, this is something that the Congress and the Nation should be warned about. But I havent heard any warning coming from the White House. Have you?

WH OMB Budget

10 Year Projection Totals

2010 Budget Social Security:
Receipts Outlays Net $ $ 8,635 8,851 (216) $ $ 8,819 9,373 (554) $ 8,901 9,902 $ (1,001) $ 8,827 $ 9,113 10,015 $ (1,188) 10,699 $ (1,586)

2011 Budget

(Billions $'s) 2012 Budget

2012 MSR

2013 Budget

From WH OMB Summary Tables: Proposed Budget by Category

2010 Budget: S-4 Page 8 2011 Budget: S-4 Page 151 2012 Budget: S-4 Page 176 2012 Budget MSR: S-4 Page 28 2013 Budget: S-5 Page 210

What makes this so alarming is that just last year the Democrats in Congress made a major effort to tell the Nation that Congress should keep its Hands Off Social Security. They used the following claims to justify that position: Social Security isnt in the budget (its in the WH OMB budget Table S-5) Social Security doesnt add to the deficit (WH OMB projects a $1,586 billion shortfall) Social Security is sound for decades

As you and I know and as the WH OMBs 2013 budget once again demonstrates, the Democrats claims just arent accurate. As trustees, you even issued the following warning in last years trust fund report: The projected trust fund shortfalls should be addressed in a timely way With informed discussion, creative thinking, and timely legislative action, Social Security can continue to protect future generations. I hope you will fulfill your duty as Trustees of the Social Security Trust Funds and join together to call for immediate action to reduce the shortfall in receipts versus outlays in the coming budget. Sec. Geithner, considering your role as Managing Trustee (the trustee with primary responsibility for the overseeing the trust funds), I hope you will quickly call for a joint session of Congressional leaders where you can point out to Congress the necessity to address this in this years budget discussions.

While I dont know the legal ramifications of government trustees failing to fulfill their fiduciary responsibilities, in the private sector trustees can actually be held criminally libel in cases of extreme fiduciary neglect. I wouldnt want to see trusted members of President Obamas administration brought up on those types of charges. Sincerely,

Alan R. Davis Private Citizen and Patriot The battle, sir, is not to the strong alone; it is to the vigilant, the active, the brave. Patrick Henry

CC:

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