Well...where to start on a Budget day when we already knew just how bad it would be long before the document was actually released.  As expected, President Obama is continuing his flawed political and policy strategy that proposes seniors, veterans and people with disabilities take benefit cuts to reduce the deficit.  You surely already know what we think about that...

“Federal budgets are far more than just numbers on a page.  They represent national priorities for our fiscal future.  That’s why so many middle-class Americans are stunned to see President Obama’s budget priorities include cutting benefits to millions of seniors, retired veterans and people with disabilities. This budget also includes more means testing for seniors in Medicare and less than half the new revenue requested in earlier budget negotiations. The President’s budget is not the balanced plan promised to Americans before November’s election.

Changing the current cost of living allowance formula to a stingier and less accurate Chained CPI is an immediate benefit cut for millions living on already modest incomes.  The White House knows this formula is not more accurate for seniors, which is why it’s promised exemptions and bumps to try and soften the blow for some. But it still leaves millions of seniors facing benefit cuts, breaking the promise President Obama made to protect America’s middle class families.

Clearly it will be up to members of Congress to set fiscal priorities that actually represent the needs of the average citizens they were elected to represent. The vast majority of Americans, of all political parties, oppose cutting Social Security and Medicare to reduce the deficit. It’s more than just wishful thinking if Congress believes voters will reward them for cutting Social Security to pay for a deficit it did not create.”...Max Richtman, NCPSSM President/CEO

There are many, many places you can go today if you want to try and figure out what in the world possessed a Democratic President to propose Social Security cuts that even the Republicans avoided their own budget.   Here are a couple worthwhile political pieces:

“...without a bipartisan budget deal that backs these cuts, it’s possible Republicans just got an even bigger gift: that chained CPI becomes an idea associated with Democrats alone. That ought to play well in 2014. Of course, the Senate unanimously approved Sen. Bernie Sanders’ resolution opposing a switch to the chained CPI by voice vote, showing no senator in either party wants his or her name on the proposal. For now, publicly at least, Obama stands alone.” Salon

“The liberals’ objections are legitimate — particularly their resistance to a stingier inflation formula for Social Security, which isn’t as big a budget problem as Medicare. There’s a case to be made that the president shouldn’t negotiate with himself by opening the bidding with his final offer. There’s also a concern that he now “owns” Social Security cuts, and Republicans can use that against him.” Washington Post

On the policy side, there is also some good coverage of just how flawed this plan truly is for middle-class Americans and the massive across-party opposition:

“There are a number of problems with this proposal, including the fact that the real cost of living for the elderly probably increases faster than the CPI-W, since the elderly consume a disproportionate amount of health care, which has a higher inflation rate than the overall economy. More generally, you don't actually save any money by reducing Social Security checks. There's no "waste" in Social Security. It's a program in which one set of people pays cash to the government and the government pays virtually all of that cash back out to another set of people. Every dollar in lower benefits is one dollar less in someone's wallet.”  The Atlantic

“The AARP reveals that 70 percent of voters age 50-plus oppose the use of the chained CPI to cut benefits, and two-thirds of them – including 60 percent of Republicans — say they would be “considerably less likely” to support a congressional candidate if he or she backed a new way of calculating consumer prices. And 84 percent of voters over 50 say Social Security has no place in budget-deficit discussions, since it is self-financed. On every single question, Republicans lag only a point or two behind Democrats in their opposition to Social Security cuts.” AARP

Just in case you haven’t pulled your hair out completely yet, we also recommend you check out the White House’s fact sheet for seniors, which incredibly claims this budget will strengthen Social Security while failing to provide even a single mention of Social Security benefit cuts which start at $130 the first year for the average 65 year-old retiree.  The cumulative cut for that individual would be $4,631 or more than three months of benefits by age 75; $13,910 or nearly a year of benefits by age 85; and $28,004, more than a year and a half of benefits by age 95. 

Seems like that might have been worth a mention by the White House today.

Lastly, a little twisted humor making the rounds on Tumblr:

 

 

 

With more than 2 million petition signatures in hand, Social Security advocates joined members of Congress at the White House today to protest President Obama’s plan to cut benefits for seniors, retired veterans and people with disabilities.  National Committee to Preserve Social Security & Medicare President/CEO, Max Richtman, told the crowd middle-class and poor families should not bear the burden of reducing the deficit:

“Contrary to the political spin, America’s seniors know this chained CPI proposal isn’t a ‘tweak’ or an  ‘adjustment.’  It’s not more accurate for seniors but it is designed to cut benefits and raise taxes, largely on the poor and middle class. Any politician in Washington who thinks they can slip these benefit cuts by millions of seniors, veterans, people with disabilities and their families unnoticed is in for the shock of their careers.”... Max Richtman, NCPSSM President/CEO

National Committee volunteer Antoinette Bobo, a 74 year old retiree from Washington, D.C., also spoke out against the proposed cut at today’s event:

“President Obama needs to rethink his Chained CPI proposal because most seniors have no other way to survive except for Social Security and Medicare. And it’s not just about us, it’s about our children and grandchildren who are going to need the same protections that we have. We earned these benefits and we’re counting on them for the future.”

A group of Democratic members of Congress committed to protecting Social Security, including Senator Bernie Sanders (I-VT), told today’s White House protestors that President Obama is simply wrong to propose cutting already modest benefits to seniors, retired veterans and people with disabilities.

“We are not going to balance the budget on the backs of the elderly, disabled vets, the sick, women or children. When one out of four major profitable corporations pay nothing in federal income taxes we know how we can deal with deficit reduction in a way that is fair. The White House tells us they want to defend the middle class. Well if you really want to defend the middle class you don’t cut Social Security, and you don’t cut Medicare and you don’t cut benefits.”...  Senator Bernie Sanders (I-VT)

Participants in today’s event included: The National Committee to Preserve Social Security and Medicare, Social Security Works, AFL-CIO,  National Organization for Women, Campaign for America’s Future, Progressive Change Campaign Committee, Democracy for America, MoveOn and former Obama for America supporters and seniors who rely on Social Security.

Today’s White House protest marks just the beginning of a mobilization of Americans nationwide. Tomorrow, Americans will follow up today’s petition delivery with a Congressional Call-In day telling members to oppose the chained CPI.

When the President's budget comes out tomorrow it's critical that we send an early shot across Congress' bow.  Let them know:

Keep the Promise.  Social Security doesn’t contribute to the deficit and Americans of all parties oppose cutting benefits earned by middle-class families. The Chained CPI isn’t a “tweak” it’s a benefit cut America’s retirees, veterans and the disabled simply cannot afford.

Congressional Call in Day

Wednesday, April 10th

  (800) 998-0180

 

National Committee members and supporters will be converging on the White House tomorrow to protest President Obama's

budget plan to cut benefits for seniors, retired veterans and people with disabilities.

“While the White House continues to claim the chained CPI is nothing more than a formula ‘tweak’, the reality is it will cut benefits immediately for America’s retirees by $130 the first year compounding to thousands of dollars in benefit cuts over time. The American people have made it clear they do not support cutting Social Security benefits to reduce the deficit; however, Washington continues on a path targeting middle-class families to pay for our fiscal failures. The disconnect between Washington and average Americans has never been larger. Passage of the chained CPI would break a promise made just months ago by politicians of both parties to protect vital middle-class programs like Social Security.” Max Richtman, NCPSSM President/CEO

Here are the basic details for those of our readers in the D.C. metro area who can join us.

WHO:  Sen. Bernie Sanders (I-VT) and Rep. Mark Takano (D-CA)

Max Richtman, NCPSSM President and CEO

Damon Silvers, AFL-CIO

Manny Hermann, MoveOn.org

Stephanie Taylor, Progressive Change Campaign Committee

Jim Dean, Democracy for America Chair

            Roger Hickey, Campaign for America’s Future            

Bonnie Grabenhofer, National Organization for Women

Former Obama for America Supporters & Seniors on Social Security

WHAT:  Delivery of more than 1 million petition signatures directly to the White House

WHEN:  Tuesday April 9, at 12:30pm (ET)

WHERE: 1600 Pennsylvania Avenue, NW - Washington DC (In front of the White House opposite of Lafayette Square)

For those who can't join us in person, have no fear there's another way our activists can truly make a difference.  Please join our Congressional Call-in Day on Wednesday.  One simple toll-free call will connect you directly to your members of Congress and Senate.

Our goal is to flood Members of Congress with calls reminding them that Americans of all ages and political parties oppose cutting Social Security to pay for deficit reduction. President Obama’s Chained CPI budget proposal in his 2014 Budget will do exactly that.  Our message to Congress is simple:

Keep the Promise.  Social Security doesn’t contribute to the deficit and Americans of all parties oppose cutting benefits earned by middle-class families. The Chained CPI isn’t a “tweak” it’s a benefit cut America’s retirees, veterans and the disabled simply cannot afford.

NCPSSM’s Legislative Hotline will connect callers directly to their Congressional leaders from one toll-free number:

CHAINED CPI CONGRESSIONAL CALL IN DAY

(800) 998-0180

The National Committee led the charge against privatization and will do the same against any plan to cut Social Security benefits, including through the chained CPI.

The White House provided reporters an early look at President Obama’s 2014 budget and the news for seniors is not good.  This assessment by Firedoglake’s Daniel Wright sums it up best:

“President Barack Obama has once again started his negotiations by scoring into his own net. In what may be the dumbest plan yet proposed, Obama has offered cuts to Social Security hoping for a change in the Republican's position on tax loopholes for the wealthy.

President Barack Obama’s proposed budget will call for reductions in the growth of Social Security and other benefit programs by including a proposal to lower cost-of-living adjustments to government social safety net spending, a senior administration official says.

Because with poverty hitting new record levels, now is a great time to cut benefits”

The President’s budget plan ignores his statements made during and after the election that Social Security should not be used to cut the deficit and also his promises for a balanced fiscal approach that wouldn’t target middle-class Americans. In truth, President Obama’s budget will cut $127.2 billion in Social Security benefits by adopting the stingier Chained CPI and further means testing in Medicare.  It also raises less than half the new revenue offered in previous proposals. 

Cutting benefits by adopting the chained CPI, as proposed by the White House, would cut the COLA by 3% for workers retired for ten years and 6% for workers retired for twenty years. This translates to a benefit cut of $130 per year in Social Security benefits for a typical 65 year-old, including today’s retirees. The cumulative cut for that individual would be $4,631 or more than three months of benefits by age 75; $13,910 or nearly a year of benefits by age 85; and $28,004, more than a year and a half of benefits by age 95. While the President has promised not to “slash” benefits, losing three months up to more than a year and half of income would count as "slashing benefits" by anyone's standards, especially for America's oldest retirees, veterans and people with disabilities living on modest incomes.

This budget also continues the lopsided deficit reduction strategy used since 2011 in which more than 75% of deficit reduction has come from program cuts. So much for a “balanced approach”.

 As CEPR’s Dean Baker reminds us:

Since President Obama's proposal would lead to a 3 percent cut in Social Security benefits, it would reduce the income of the typical retiree by more than 2.0 percent, more than three times the size of the hit from the tax increase to the wealthy.

Here is NCPSSM President Max Richtman’s reaction to the President Obama’s budget:

“If news reports today are correct, President Obama will soon renege on his commitment to keep Social Security out of the deficit debate, ignoring his campaign promise to millions of Americans that he would protect vital middle class programs like Social Security. By including a proposal in his 2014 budget to change the current cost of living allowance formula to a stingier and less accurate Chained CPI, the President has suggested an immediate benefit cut of $130 per year for the typical 65-year old retiree that would grow exponentially to a $1,400 cut after 30 years of retirement. 

Contrary to the political spin, this chained CPI proposal isn’t a “tweak” or an “adjustment,” it’s designed to cut benefits and raises taxes, largely on the poor and middle class, totaling $208 billion over ten years.  $127.2 billion of those benefits cuts come from Social Security with about $24 billion coming from VA benefits and civilian and military retirement pay cuts.

Seniors will have received an average COLA of 1.3% over 4 years with no increase in two of those years. Arguing that is too generous shows how out of touch Washington is with the real-world economic realities facing average Americans. Adopting the chained CPI is nothing more than a political sleight of hand targeting our nation’s middle class and poor.   

This budget is also reported to include more means testing in Medicare and less than half the new revenue requested in earlier budget negotiations. The President’s budget is not the balanced plan promised to Americans before November’s election and will leave millions of middle-class families in even worse shape than they are today.”...Max Richtman, NCPSSM President/CEO

 Originally posted on Huffington Post by Max Richtman, NCPSSM President/CEO

When I met with President Obama and other allied groups at the White House just after his reelection, his commitment to carry out the promises made during the campaign seemed clear and unambiguous.  The President acknowledged Social Security should not be a part of the deficit debate. This was especially important to millions of American families still struggling in this economy who depend on Social Security’s modest benefit -- the benefit they’ve contributed to throughout their working lives. Unfortunately, within months, President Obama’s unambiguous statement has taken a 180 degree turn and a proposal cutting Social Security benefits for both current and future retirees has once again become a deficit debate bargaining chip.  However, as a consolation, the President promises he won’t “slash” benefits.

Mr. President, please define “slash”.

The Stealth Benefit Cut

There’s a political calculus behind cutting benefits to millions of seniors, veterans, people with disabilities and more by reducing the federal cost of living allowance.  Cutting the COLA is being pitched as a simple “technical tweak” or “formula adjustment” that’s more accurate than the current COLA formula.  Sounds reasonable, right?  However, claims that the current COLA is too generous are demonstrably false.  So much so, the White House is considering “protecting” millions of low-income Americans, some veterans and “older” beneficiaries from this COLA cut.   If the chained-CPI really is a more accurate formula, why the exemption? 

The Social Security COLA has averaged just over 2% over the past five years with 0% for two of those years, far below the largest expenditure increase for most seniors, health care. If accuracy, not cutting benefits, is the goal then we should be talking about the elderly formula (CPI-E) which factors in seniors’ health care costs and has been under review by the federal government for decades. However, that won’t happen because there’s no guarantee the CPI-E will cut benefits. The chained CPI, on the other hand, will.  This COLA change is nothing more than a stealth benefit cut Washington politicians hope will fly under the radar of the millions of American families it targets. On behalf of the National Committee to Preserve Social Security and Medicare’s millions of members and supporters I’ve written to the President about his COLA proposal:

“The ‘chained CPI’ is not a ‘technical tweak,’ and no amount of rationalization can make it so.  In reality, the chained CPI is a benefit cut for the oldest and most vulnerable Americans who would be least able to afford it.  To offer to trade it away outside the context of a comprehensive Social Security solvency proposal ignores the fact that Social Security does not even belong in this debate because it does not contribute to the deficit.  Cutting Social Security benefits to reduce the deficit is unacceptable to the vast majority of Americans across all ages and political affiliation.”

Slash? You Decide

Cutting benefits by adopting the chained CPI, as proposed by the White House, would cut the COLA by 3% for workers retired for ten years and 6% for workers retired for twenty years. This translates to a benefit cut of $130 per year in Social Security benefits for a typical 65 year-old, including today’s retirees. The cumulative cut for that individual would be $4,631 or more than three months of benefits by age 75; $13,910 or nearly a year of benefits by age 85; and $28,004, more than a year and a half of benefits by age 95. Losing three months up to more than a year and half of income would count as “slashing benefits” by anyone’s standards, especially for America’s oldest retirees, veterans and people with disabilities living on modest incomes. These chained CPI cuts also deliver a larger percentage cut to seniors’ annual income than the tax increases on the wealthiest Americans passed earlier this year deliver to our nation’s millionaires.   An analysis by Dean Baker with the Center for Economic and Policy Research shows the after tax income for wealthy Americans was reduced by less than 0.7 percent after January’s tax hike.  By comparison, the percentage of income Social Security beneficiaries will lose would be three times as much if the chained CPI is adopted.

So Much for “Shared Sacrifice”

Requiring benefit cuts to Social Security, Medicare and Medicaid in the name of deficit reduction has always been the goal of the billion dollar corporate and Wall Street backed crisis campaign driving Washington’s deficit hysteria. These millionaires, billionaires and their supporters in Congress have used the economic recession to fuel their anti-Social Security and Medicare mission. The Obama administration and some Democrats in Congress have bought into the flawed idea that they must trade away middle-class benefits just to get Republicans to the table and further, if a millionaire loses a tax break then the middle class and poor most also lose their modest benefits in Medicare or Social Security.  There’s nothing balanced about this type of deal.  But it does explain how the deficit reduction passed since 2011 includes 75% cuts (mostly to programs serving the poor and middle-class) and only 25% revenue increases (not just from the wealthy). This mythological “shared sacrifice” continues as President Obama has now told Congress he’s "willing to back $2 in spending cuts for every $1 in tax revenue" in any future deal.  Even that isn’t enough for Republicans who expect average Americans to foot the entire deficit reduction bill through program cuts rather than closing the trillion dollars of wasteful millionaire and corporate loopholes and tax breaks.

“In addition, we should not fool ourselves that your negotiating partners will be satisfied with lowering Social Security COLAs or raising the Medicare eligibility age.  Each debt limit increase, Continuing Resolution or sequestration will give them a second, third and fourth ‘bite at the apple.’  In November, you won the confidence of the American people by defending the middle class.  I urge you not to let them down now by supporting a deal that undermines the last remaining retirement security pillars for middle-class Americans.”  Letter to President Obama, March 20, 2013

Americans Won’t Be Fooled

Inside the Beltway, members of Congress might also be able to kid themselves that middle-class families won’t notice a Social Security benefit cut here and a Medicare benefit cut there. However, they will find a very different truth when they go home to their Congressional districts.  Not because America is a nation of “takers” or “greedy geezers” but because Americans understand the difference between harmful benefit cuts to the poor and middle-class and reasonable reforms, such as lifting the Social Security payroll tax cap and allowing Medicare to negotiate for lower drug prices. They don’t believe a dollar in millionaire taxes is the same as a dollar cut from the average annual $14,000 earned Social Security benefit. Most importantly, the American people are willing to pay to preserve and even strengthen these vital benefits.  They’ve said this over and over again, most recently at the polls in November. 

Will Congress listen now that the election is over? If not, they shouldn’t be surprised that voters deliver the same message when they return to the polls next time.