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January
13, 2005
Government
IDs and Identity Theft
by Rep. Ron Paul, MD
Before
the US House of Representatives International
Relations Committee:
Mr. Speaker, today I introduce the Identity
Theft Prevention Act. This act protects the
American people from government-mandated uniform
identifiers that facilitate private crime as well
as the abuse of liberty. 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 Social
Security administration. 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 administration
of the Social Security system.
Mr. Speaker, Congress has a moral responsibility
to address this problem because it was Congress
that transformed the Social Security number into a
national identifier. Thanks to Congress, today no
American can get a job, open a bank account, get a
professional license, or even get a driver's
license without presenting his 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!
One of the most disturbing abuses of the Social
Security number is the congressionally-authorized
rule forcing parents to get a Social Security
number for their newborn children in order to claim
the children as dependents. Forcing parents to
register their children with the state is more like
something out of the nightmares of George Orwell
than the dreams of a free republic that inspired
this nation's founders.
Congressionally-mandated use of the Social
Security number as an identifier facilitates the
horrendous crime of identity theft. Thanks to
Congress, an unscrupulous person may simply 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 had their credit destroyed
as a result of identity theft. Yet the federal
government continues to encourage such crimes by
mandating use of the Social Security number as a
uniform ID!
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 among American citizens. At the very
end of the 108th Congress, this body established a
de facto national ID card with a provisions buried
in the "intelligence" reform bill mandating federal
standards for drivers' licenses, and mandating that
federal agents only accept a license that conforms
to these standards as a valid ID.
Nationalizing standards for driver's licenses
and birth certificates creates a national ID system
pure and simple. Proponents of the national ID
understand that the public remains wary of the
scheme, so proponents attempt to claim they are
merely creating new standards for existing state
IDs. However, the "intelligence" reform legislation
imposed federal standards in a federal bill, thus
creating a federalized ID regardless of whether the
ID itself is still stamped with the name of your
state. It is just a matter of time until those who
refuse to carry the new licenses will be denied the
ability to drive or board an airplane. Domestic
travel restrictions are the hallmark of
authoritarian states, not free republics.
The national ID will be used to track the
movements of American citizens, not just
terrorists. Subjecting every citizen to
surveillance diverts resources away from tracking
and apprehending terrorists in favor of needless
snooping on innocent Americans. This is what
happened with "suspicious activity reports"
required by the Bank Secrecy Act. Thanks to BSA
mandates, federal officials are forced to waste
countless hours snooping through the private
financial transactions of innocent Americans merely
because those transactions exceeded
$10,000.
The Identity Theft Prevention Act repeals those
sections of federal law creating the national ID,
as well as 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
&endash; an identifier which could be used to
create a national database containing the medical
history of all Americans. As an OB/GYN with more
than 30 years in private practice, I know the
importance of preserving the sanctity of the
physician-patient relationship. Oftentimes,
effective treatment depends on a patient's ability
to place absolute trust in his or her doctor. What
will happen to that trust when patients know that
any and all information given to their doctors will
be placed in a government-accessible
database?
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.
Some 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 jobs of government officials easier. We
are here to protect the freedom of the American
people, not to make privacy invasion more
efficient.
Mr. Speaker, while I do not question the
sincerity of those members who suggest that
Congress can ensure that 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 a couple of
reasons.
First, it is simply common sense that repealing
those federal laws that promote identity theft is
more effective in protecting the public than
expanding the power of the federal police force.
Federal punishment of identity thieves provides
cold comfort to those who have suffered financial
losses and the destruction of their good
reputations as a result of identity
theft.
Federal laws are not only ineffective in
stopping private criminals, but these laws have not
even stopped unscrupulous government officials from
accessing personal information. After all, laws
purporting to restrict the use of personal
information did not stop the well-publicized
violations of privacy by IRS officials or the FBI
abuses of the Clinton and Nixon
administrations.
In one of the most infamous cases of identity
theft, thousands of active-duty soldiers and
veterans had their personal information stolen,
putting them at risk of identity theft. Imagine the
dangers if thieves are able to obtain the universal
identifier, and other personal information, of
millions of Americans simply by breaking, or
hacking, into one government facility or one
government database?
Second, the federal government has been creating
proprietary interests in private information for
certain state-favored special interests. Perhaps
the most outrageous example of phony privacy
protection is the "medical privacy'" regulation,
that allows medical researchers, certain business
interests, and law enforcement officials access to
health care information, in complete disregard of
the Fifth Amendment and the wishes of individual
patients! Obviously, "privacy protection'' laws
have proven greatly inadequate to protect personal
information when the government is the one seeking
the information.
Any action short of repealing laws authorizing
privacy violations is insufficient primarily
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. Speaker, those members who are not persuaded
by the moral and constitutional reasons for
embracing the Identity Theft Prevention Act should
consider the American people's opposition to
national identifiers. The numerous complaints over
the ever-growing uses of the Social Security number
show that Americans want Congress to stop invading
their privacy. Furthermore, according to a survey
by the Gallup company, 91 percent of the American
people oppose forcing Americans to obtain a
universal health ID.
In conclusion, Mr. Speaker, I once again call on
my colleagues to join me in putting an end to the
federal government's unconstitutional use of
national identifiers to monitor the actions of
private citizens. National identifiers threaten all
Americans by exposing them to the threat of
identity theft by private criminals and abuse of
their liberties by public criminals, while
diverting valuable law enforcement resources away
from addressing real threats to public safety. In
addition, national identifiers are incompatible
with a limited, constitutional government. I,
therefore, hope my colleagues will join my efforts
to protect the freedom of their constituents by
supporting the Identity Theft Prevention Act.
Paul
Archive
Dr. Ron Paul is a Republican
member of Congress from Texas.
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