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Politech: FC: Rep. Ron Paul statement on SSNs, privacy, identity theft

FC: Rep. Ron Paul statement on SSNs, privacy, identity theft

From: Declan McCullagh <declan_at_well.com>
Date: Sat, 26 May 2001 12:09:37 -0400

The House Ways and Means's subcommittee on Social Security held a hearing
on Tuesday about privacy and preventing the misuse of Social Security
numbers. See chairman Clay Shaw (R-FL)'s opening statement, planning "to
quickly bring to the House floor comprehensive legislation to keep Social
Security numbers private and protect citizens from identity theft." It's here:
http://waysandmeans.house.gov/socsec/107cong/5-22-01/5-22shaw.htm

Other testimony, from Ron Plesser representing credit bureaus and Marc
Rotenberg of EPIC:
http://waysandmeans.house.gov/socsec/107cong/5-22-01/5-22ples.htm
http://waysandmeans.house.gov/socsec/107cong/5-22-01/5-22rote.htm

You can see the complete list of prepared testimony at:
http://waysandmeans.house.gov/socsec/107cong/ss-4wit.htm

-Declan

*********

From: "Singleton, Norman" <Norman.Singleton_at_mail.house.gov>
Subject: Statement on SSNs
Date: Fri, 25 May 2001 14:57:18 -0400

Friends, I thought you might be interested in the following statement
Congressman Paul submitted for the subcommittee on Social Security hearing
on the abuse of the Social Security number on May 22:

<http://www.house.gov/paul/congrec/congrec2001/cr052201.htm>http://www.house.gov/paul/congrec/congrec2001/cr052201.htm

May 22, 2001

      Hearing before the House Ways and Means Social Security
      Subcommittee

      Protecting Privacy and Preventing Misuse of Social Security Numbers

      I wish to thank the subcommittee on Social Security of the Ways and
Means
      Committee for holding this hearing on the misuse of the Social Security
      number. The transformation of the Social Security number into a de facto
      uniform identifier is a subject of increasing concern to the American
people.
      This is, in large part, because the use of the Social Security number
as a
      standard identifier facilitates the crime of identity theft. Today,
all an
      unscrupulous person needs to do is obtain someone's Social Security
number
      in order to access that person's bank accounts, credit cards, and other
      financial assets. Many Americans have lost their life savings and
have had
      their credit destroyed as a result of identity theft.

      The responsibility for the misuse of the Social Security number and the
      corresponding vulnerability of the American people to identity crimes
lies
      squarely with the Congress. Since the creation of the Social Security
number,
      Congress has authorized over 40 uses of the Social Security number.
Thanks
      to Congress, today no American can get a job, open a bank account, get a
      professional license, or even get a drivers' license without
presenting their
      Social Security number. So widespread has the use of the Social Security
      number become that a member of my staff had to produce a Social Security
      number in order to get a fishing license!

      Because it was Congress which transformed the Social Security number
into
      a national identifier, Congress has a moral responsibility to address
this
      problem. In order to protect the American people from
government-mandated
      uniform identifiers which facilitate identity crimes, I have
introduced the
      Identity Theft Prevention Act (HR 220). The major provision of the
Identity
      Theft Prevention Act halts the practice of using the Social Security
number as
      an identifier by requiring the Social Security Administration to
issue all
      Americans new Social Security numbers within five years after the
enactment
      of the bill. These new numbers will be the sole legal property of the
recipient
      and the Social Security Administration shall be forbidden to divulge the
      numbers for any purposes not related to the Social Security program.
Social
      Security numbers issued before implementation of this bill shall no
longer be
      considered valid federal identifiers. Of course, the Social Security
      Administration shall be able to use an individual's original Social
Security
      number to ensure efficient transition of the Social Security system.

      This act also forbids the federal government from creating national
ID cards
      or establishing any identifiers for the purpose of investigating,
monitoring,
      overseeing, or regulating private transactions between American
citizens, as
      well as repealing those sections of the Health Insurance Portability and
      Accountability Act of 1996 that require the Department of Health and
Human
      Services to establish a uniform standard health identifier. By
putting an end to
      government-mandated uniform IDs, the Identity Theft Prevention Act will
      prevent millions of Americans from having their liberty, property and
privacy
      violated by private-and-public sector criminals.

      In addition to forbidding the federal government from creating national
      identifiers, this legislation forbids the federal government from
blackmailing
      states into adopting uniform standard identifiers by withholding
federal funds.
      One of the most onerous practices of Congress is the use of federal
funds
      illegitimately taken from the American people to bribe states into
obeying
      federal dictates.

      Many of our colleagues will claim that the federal government needs
these
      powers to protect against fraud or some other criminal activities.
However,
      monitoring the transactions of every American in order to catch those
few
      who are involved in some sort of illegal activity turns one of the great
      bulwarks of our liberty, the presumption of innocence, on its head.
The federal
      government has no right to treat all Americans as criminals by spying
on their
      relationship with their doctors, employers, or bankers. In fact,
criminal law
      enforcement is reserved to the state and local governments by the
      Constitution's Tenth Amendment.

      Other members of Congress will claim that the federal government
needs the
      power to monitor Americans in order to allow the government to operate
      more efficiently. I would remind my colleagues that in a
constitutional republic
      the people are never asked to sacrifice their liberties to make the
job of
      government officials a little bit easier. We are here to protect the
freedom of
      the American people, not to make privacy invasion more efficient.

      Mr. Chairman, while I do not question the sincerity of those members who
      suggest that Congress can ensure citizens' rights are protected through
      legislation restricting access to personal information, the only
effective privacy
      protection is to forbid the federal government from mandating national
      identifiers. Legislative "privacy protections" are inadequate to
protect the
      liberty of Americans for several reasons. First, it is simply common
sense that
      repealing those federal laws that promote identity theft is a more
effective in
      protecting the public than expanding the power of the federal police
force.
      Federal punishment of identity thieves provides old comfort to those
who have
      suffered financial losses and the destruction of their good
reputation as a
      result of identity theft.

      Federal laws are not only ineffective in stopping private criminals,
they have
      not even stopped unscrupulous government officials from accessing
personal
      information. Did laws purporting to restrict the use of personal
information
      stop the well-publicized violation of privacy by IRS officials or the
FBI abuses
      by the Clinton and Nixon administrations? !

      The primary reason why any action short of the repeal of laws
authorizing
      privacy violation is insufficient is because the federal government
lacks
      constitutional authority to force citizens to adopt a universal
identifier for
      health care, employment, or any other reason. Any federal action that
      oversteps constitutional limitations violates liberty because it
ratifies the
      principle that the federal government, not the Constitution, is the
ultimate judge
      of its own jurisdiction over the people. The only effective
protection of the
      rights of citizens is for Congress to follow Thomas Jefferson's
advice and
      "bind (the federal government) down with the chains of the
Constitution."

      Mr. Chairman, those members who are unpersuaded by the moral and
      constitutional reasons for embracing the Identity Theft Prevention
Act should
      consider the overwhelming opposition of the American people toward
national
      identifiers. The overwhelming public opposition to the various
      "Know-Your-Customer" schemes, the attempt to turn drivers' licenses into
      National ID cards, HHS's misnamed "medical privacy" proposal, as well as
      the numerous complaints over the ever-growing uses of the Social
Security
      number show that American people want Congress to stop invading their
      privacy. Congress risks provoking a voter backlash if we fail to halt
the
      growth of the surveillance state.

      In conclusion, Mr. Chairman, I once again thank you and the other
members
      of the subcommittee for holding a hearing on this important issue. I
hope this
      hearing would lead to serious Congressional action to end to the federal
      government's unconstitutional use of national identifiers which
facilitate
      identity theft by passing Hr 220, the Identify Theft Prevention Act.

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