WASHINGTON — The Concord Coalition
today urged Congress to put the interests of future generations first by rejecting the
proposed 10-year $792 billion tax cut, and instead turning its attention to the neglected
issues of long-term Social Security and Medicare reform.

WASHINGTON — The Concord Coalition
today urged Congress to put the interests of future generations first by rejecting the
proposed 10-year $792 billion tax cut, and instead turning its attention to the neglected
issues of long-term Social Security and Medicare reform.

"We have a moral responsibility to
lower the tax burden on future generations before we lower it for ourselves.  Our children and grandchildren should not be
saddled with the twin problems of a huge national debt and unsustainable entitlement
programs, which is exactly what they’re facing if we don’t rise above partisan
politics and start making tough choices today,” said Policy Director Robert Bixby.

"Given the strength of the economy
and the looming demographic pressures, our priorities should be to dedicate the Social
Security surplus to long-term reform, determine how much money will be needed to modernize
Medicare in a fiscally responsible manner, and use the remaining surplus to reduce
publicly held debt. Together these actions will do more to enhance the economic well-being
of future generations than a tax cut financed by a speculative surplus,” Bixby said.

Concord reminded lawmakers that despite
rosy projections of huge surpluses, the budget is still in deficit without counting the
“off-budget” Social Security surplus. Moreover, the projected surplus on which
the tax cuts are based assumes deep cuts in discretionary programs that few are advocating
and fewer still believe will be made. Recent emergency spending declarations threaten to
further deplete the projected surpluses.

The most recent report of the Social
Security and Medicare Trustees projects that these two programs will have a very small
cash surplus in 1999.  But the fiscal outlook
deteriorates rapidly as the Baby Boomers begin to retire. 
By 2035, when the toddlers of today will be struggling to raise children of their
own, current law Social Security and Medicare benefits will be draining nearly $670
billion, adjusted for inflation, from general revenues in that year alone.

"The existence of a non-Social
Security surplus is a lot more uncertain than the long-term cost burden of Social Security
and Medicare. We should tackle the problems we know we have before we celebrate a windfall
that may never come,” Bixby said. 

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