(WASHINGTON, DC) – Federal Reserve Chairman Alan Greenspan today endorsed the concept of a bill introduced by Congressman Dennis Moore (Third District-KS) to protect Social Security. The bill amends the Social Security Act to ensure that Social Security taxes deposited in the trust funds are not used for any purpose other than Social Security benefits.

The following is from today’s House Budget Committee hearing:

Congressman Moore: If Congress protected the Social Security surpluses and really credited them to the Social Security trust fund, would that go any step in the right direction toward trying to preserve and protect Social Security and extending the solvency in the life of Social Security in the future.

Chairman Greenspan: I believe it would, Congressman. First of all, of course, as you know, the previous statutes have required the bookkeeping to change and, indeed, you'll find on the monthly Treasury statements that the deficit is split between on-budget and off-budget. And the off-budget is essentially the Social Security trust funds.

As a result of laws enacted in 1983, 1985, and 1990, Social Security is considered “off budget” for federal budget purposes. While this means that Social Security is not considered part of the federal budget, Americans are perplexed by the continued use of budget numbers that include payroll and income taxes that are credited to the Social Security trust funds.

Moore’s bill, H.R. 653, would require the Office of Management and Budget and the Congressional Budget Office to remove all Social Security funds from the budget and create a true trust fund that could not be used to pay for any other expenses of the government.

“We have a real opportunity to take a stand in favor of fiscal responsibility and honest budgeting. Members on both sides of the aisle need to work together in a bipartisan manner to ensure that we get back on the road to fiscal responsibility,” Moore said. “Our country simply can’t afford to play politics with our seniors’ Social Security funds and our children and grandchildren’s future.”