Social Security Financing Bill White House Statement on House Action on the Bill.

We commend the action of the House of Representatives today in passing the social security financing bill [H.R. 9346]. The President requested such legislation on May 9, 1977, and it now appears possible that a bill can be enacted this year.

The House bill contains many provisions requested by the administration, including the correction of the inflation adjustment mechanism, maintenance of benefit levels in the future, and the use of general revenues as an insurance policy to protect the trust funds against a future economic downturn. We would like to see more moderate increases in the tax rate for workers. In particular, we are concerned that the removal of the earnings limitation passed by the House will require too great a tax increase. We expect that the tax levels will be moderated in the final measure passed by Congress.

The American people deserve a social security system which is financially sound. The response of the House to the President's initiative is an important first step toward that goal. We are confident that the Senate will soon take action on the bill to be reported from the Finance Committee.

We look forward to working with the Members of the House and Senate in the coming weeks in a joint effort to ensure the financial integrity of the social security system into the middle of the next century.