House Democrats “Get It”
The House Democratic caucus has voted against consideration of the White House negotiated tax deal unless changes can be made.There is so much not to like about this ?deal? including the so-called payroll tax ?holiday? which GOP Senators have now acknowledged is no holiday at all and they fully intend to keep these cuts in place?draining $120 billion dollars a year from Social Security. Ryan Grim reports:
Republicans acknowledged that the expiration of the tax holiday will be treated as a tax increase. “Once something like this goes into place, a year from now, when it expires, it’ll be portrayed as a tax increase,” said Sen. Bob Corker (R-Tenn.). So in a body like Congress, precedents matter and this is setting a precedent. I think that certainly is going to create some problems down the road if it passes.”Given that Congress, under Democratic control, can’t gather itself to let tax cuts for the wealthiest Americans expire, members of both parties are convinced that letting the payroll tax rate revert back to its current spot will be near impossible. “Once you bring a rate down, if it goes back up, people will feel that. They’ll feel their paycheck being less and that argument” — that letting it expire amounts to a tax hike — “eventually is bound to be made,” said Sen. Mike Johanns (R-Neb.).“There’s always a tendency to continue those things… Once something comes in, it’s very difficult to change it,” said Sen. George Voinovich (R-Ohio.) He then volunteered, without prompting, that “It would be detrimental to the Social Security system, especially when it’s in bad shape.”HuffPost noted that some of his colleagues would likely treat the deprivation of Social Security funds as a benefit of such a circumstance rather than a drawback.“I suspect so, yes,” agreed Voinovich.
This is “starve the beast” politics all over again, taking $120 billion a year from Social Security?s funding knowing that fiscal hawks won’t replace it…forcing massive benefit cuts instead.Thank goodness House Democrats have put the brakes on. Now, hopefully they?ll ensure this flawed payroll tax plan is not included in any final tax plan.So, what about the Senate? The National Journal reports some Democrats have already expressed their opposition but others are on the fence:
?While some Senate Democrats, including Bernie Sanders, Tom Harkin of Iowa, Mark Udall of Colorado, Patrick Leahy of Vermont, and Russ Feingold of Wisconsin, have indicated they plan to oppose the package or are leaning toward doing so, they are outnumbered by Democratic supporters. Harkin was among Democrats who emerged from their Wednesday meeting sounding like he was more likely to back the deal.
Senate Democratic leaders have scheduled debate to begin as soon as today. Now?s the time to wake up your Senator?do they really understand what this proposal will do to Social Security? Send them an email from our Legislative Action Center and tell them the payroll tax ?holiday? is anything but for millions of American retirees and their families.
America’s Seniors Face 2nd Year Without a COLA Increase
Congressional Votes Reject One-Time Payment for Seniors
?The cruel irony of Washington?s priorities continues to hit home for America?s seniors. While Congress and the White House negotiate a tax deal which extends trillions of dollars of tax cuts for wealthy Americans, today we?re told that providing $250 for America?s seniors and their families is considered too generous. The House and Senate have ignored the reality that despite a relatively low rate of general inflation, seniors’ costs are going up. Health care costs especially are rising, and the elderly on fixed incomes spend a significantly larger share of their income on health care. This economy has only made the situation worse.For the millions of seniors who rely upon Social Security as their only source of income, and millions more who rely upon it for at least half of their income, a cost of living adjustment in their Social Security benefits is not a luxury, it?s a necessity. We also know that money in the hands of seniors is successful stimulus. The 2009 Social Security payment in the stimulus bill translated to about 125,000 jobs created or saved due to these payments. No cost of living increase for two years in a row ? no one-time relief for seniors ? and promises of benefit cuts ahead. It?s no wonder so many middle-class seniors? and their families feel such a disconnect with some in Washington. ? …Barbara B. Kennelly, President/CEOSee how your Congressional representatives voted here:SenateHouse
Cutting contributions to Social Security Signals the Beginning of the End
Payroll Tax “Holiday” is Anything But
“Even though Social Security contributed nothing to the current economic crisis, it has been bartered in a deal that provides deficit busting tax cuts for the wealthy. Diverting $120 billion in Social Security contributions for a so-called “tax holiday” may sound like a good deal for workers now but it’s bad business for the program that a majority of middle-class seniors will rely upon in the future.” Barbara B. Kennelly, President/CEO
Conservatives have long dreamed of a payroll tax holiday because it fulfills two ideological goals, lower taxes and weakening Social Security’s finances. The White House claims the 2% payroll tax cut won?t impact Social Security; however, we disagree.
“There’s no such thing as a “temporary: tax Cut. If Congress is unwilling to allow tax cuts for wealthy Americans to expire in the midst of economic crisis now, then why would it allow this so-called “holiday” to end in one year? The short answer–it wouldn’t. Americans should expect that when this tax “holiday” ends, restoring Social Security’s funding will be portrayed by those opposed to the program as a massive tax hike, rather than the legislated end of the “holiday”. That leaves Social Security permanently dependent on general fund revenues rather than worker contributions which have successfully funded the program for 75 years. If extended, this payroll tax cut would then double Social Security’s 75 year projected shortfall. This 2% payroll tax cut is the beginning of the end of Social Security as we know it. Worker contributions have successfully funded the program for 75 years and that critical linkage between contributions and benefits is what keeps Social Security a self-funded program. Proposals like this threaten the program’s independence, forcing Social Security to compete for limited federal dollars. Cutting contributions to Social Security isn’t the best way to stimulate the economy. The Tax Policy Center reports the wealthiest 40% of households benefit most from a payroll tax cut. According to The Center for Budget and Policy Priorities, extending the “Making Work Pay Tax Credit” is a much better and targeted stimulus.
For all of these reasons, the National Committee does not support proposals to cut the payroll tax. America’s seniors understand the vital role Social Security plays during these difficult economic times and they’re not willing to trade promises of possible short-term economic gains for real and measurable damage to this vital program which would impact generations of Americans to come.
Social Security COLA Vote Coming Up-Call Congress Today!
Congressional leaders have put emergency COLA legislation on the calendar?with a vote expected as early as tomorrow. Unfortunately, its passage is far from certain.Which makes it more than just ironic (you could say it?s actually infuriating) is that many of the same fiscal hawks who fought hard to keep $4 trillion dollars in tax cuts for the wealthy, will blithely argue on the floor of the Senate and House this week that America can?t afford to give seniors–who will go without a cost of living increase for two consecutive years–$250.Contrary to the ?greedy geezer? mythology preferred by these Washington?s fiscal hawks, the truth about this COLA legislation has absolutely nothing to do their us-versus-them, young-versus-old propaganda. In fact, these $250 one-time payments have been proven to be effective economic stimulus and a job creator, as was the case in 2009:While its share of the overall Recovery Act spending was very small, this lump-sum payment was one of the quickest-acting components of the overall package?the majority of payments were received just months after the Act was passed (by the end of May 2009). This Social Security and SSI payment by itself likely boosted GDP by roughly 0.5% in the second quarter of 2009, which would roughly translate to about 125,000 jobs created or saved due to these payments.?? ?Downpayment on Economic Recovery,? September 2010Ask your representatives in Congress?
?Where do you stand on COLA relief legislation for millions of retirees??
and then
?Where do you stand on extending $4 billion in tax cuts to the wealthy??
The answers to these questions will tell you a lot about Washington?s current fiscal priorities.Pushing tax cuts for the wealthy while rejecting any COLA relief and even proposing benefit cuts in Social Security are not America?s fiscal priorities. This Washington disconnect is not good for our nation or our economic recovery and it?s time we deliver that message loud and clear.Use our 24-hour Legislative Hotline to connect directly to your members:
800-998-0180
Or send an email from our Legislative Action Center. You can see a sample email message there and personalize it with your own message to Congress.
Tell Congress ? it?s time to get their priorities straight!
National Committee President/CEO Barbara Kennelly?s Statement on Failure to Issue a Fiscal Commission Report
?In spite of months of deliberations in a process that appeared intent on reducing the deficit by cutting Social Security, the fiscal commission has failed to reach a consensus on a plan.I?m not surprised given that this fiscal debate spent so much time on the wrong track. Working Americans, who continue to suffer in this economic crisis, want fiscal sanity returned to Washington. However, they also know that Social Security isn?t the problem. Unfortunately, it?s clear that many in Washington will continue to search for a way to reduce Social Security benefits in order to avoid repaying the $2.6 trillion dollars in bonds currently credited to Social Security. That is not fiscal responsibility — that?s $2.6 trillion dollars contributed to Social Security by America?s workers that Washington?s fiscal hawks want to keep.If anything good has come from this commission effort, it?s that the root causes of our fiscal woes have been identified. The commission has begun the process of examining how we can rein in our debt and deficits, which are by definition outside the Social Security portion of the budget. This is where our future efforts must begin.Moving forward, National Committee members believe that Congress must stay focused on reducing the deficit while remembering that today?s middle-income workers are tomorrow?s retirees. Given the economic challenges millions of Americans face now and into the future, it?s clear that preserving and strengthening Social Security benefits should be Washington?s only goal for this program.??Barbara B. Kennelly, President/CEO
House Democrats “Get It”
The House Democratic caucus has voted against consideration of the White House negotiated tax deal unless changes can be made.There is so much not to like about this ?deal? including the so-called payroll tax ?holiday? which GOP Senators have now acknowledged is no holiday at all and they fully intend to keep these cuts in place?draining $120 billion dollars a year from Social Security. Ryan Grim reports:
Republicans acknowledged that the expiration of the tax holiday will be treated as a tax increase. “Once something like this goes into place, a year from now, when it expires, it’ll be portrayed as a tax increase,” said Sen. Bob Corker (R-Tenn.). So in a body like Congress, precedents matter and this is setting a precedent. I think that certainly is going to create some problems down the road if it passes.”Given that Congress, under Democratic control, can’t gather itself to let tax cuts for the wealthiest Americans expire, members of both parties are convinced that letting the payroll tax rate revert back to its current spot will be near impossible. “Once you bring a rate down, if it goes back up, people will feel that. They’ll feel their paycheck being less and that argument” — that letting it expire amounts to a tax hike — “eventually is bound to be made,” said Sen. Mike Johanns (R-Neb.).“There’s always a tendency to continue those things… Once something comes in, it’s very difficult to change it,” said Sen. George Voinovich (R-Ohio.) He then volunteered, without prompting, that “It would be detrimental to the Social Security system, especially when it’s in bad shape.”HuffPost noted that some of his colleagues would likely treat the deprivation of Social Security funds as a benefit of such a circumstance rather than a drawback.“I suspect so, yes,” agreed Voinovich.
This is “starve the beast” politics all over again, taking $120 billion a year from Social Security?s funding knowing that fiscal hawks won’t replace it…forcing massive benefit cuts instead.Thank goodness House Democrats have put the brakes on. Now, hopefully they?ll ensure this flawed payroll tax plan is not included in any final tax plan.So, what about the Senate? The National Journal reports some Democrats have already expressed their opposition but others are on the fence:
?While some Senate Democrats, including Bernie Sanders, Tom Harkin of Iowa, Mark Udall of Colorado, Patrick Leahy of Vermont, and Russ Feingold of Wisconsin, have indicated they plan to oppose the package or are leaning toward doing so, they are outnumbered by Democratic supporters. Harkin was among Democrats who emerged from their Wednesday meeting sounding like he was more likely to back the deal.
Senate Democratic leaders have scheduled debate to begin as soon as today. Now?s the time to wake up your Senator?do they really understand what this proposal will do to Social Security? Send them an email from our Legislative Action Center and tell them the payroll tax ?holiday? is anything but for millions of American retirees and their families.
America’s Seniors Face 2nd Year Without a COLA Increase
Congressional Votes Reject One-Time Payment for Seniors
?The cruel irony of Washington?s priorities continues to hit home for America?s seniors. While Congress and the White House negotiate a tax deal which extends trillions of dollars of tax cuts for wealthy Americans, today we?re told that providing $250 for America?s seniors and their families is considered too generous. The House and Senate have ignored the reality that despite a relatively low rate of general inflation, seniors’ costs are going up. Health care costs especially are rising, and the elderly on fixed incomes spend a significantly larger share of their income on health care. This economy has only made the situation worse.For the millions of seniors who rely upon Social Security as their only source of income, and millions more who rely upon it for at least half of their income, a cost of living adjustment in their Social Security benefits is not a luxury, it?s a necessity. We also know that money in the hands of seniors is successful stimulus. The 2009 Social Security payment in the stimulus bill translated to about 125,000 jobs created or saved due to these payments. No cost of living increase for two years in a row ? no one-time relief for seniors ? and promises of benefit cuts ahead. It?s no wonder so many middle-class seniors? and their families feel such a disconnect with some in Washington. ? …Barbara B. Kennelly, President/CEOSee how your Congressional representatives voted here:SenateHouse
Cutting contributions to Social Security Signals the Beginning of the End
Payroll Tax “Holiday” is Anything But
“Even though Social Security contributed nothing to the current economic crisis, it has been bartered in a deal that provides deficit busting tax cuts for the wealthy. Diverting $120 billion in Social Security contributions for a so-called “tax holiday” may sound like a good deal for workers now but it’s bad business for the program that a majority of middle-class seniors will rely upon in the future.” Barbara B. Kennelly, President/CEO
Conservatives have long dreamed of a payroll tax holiday because it fulfills two ideological goals, lower taxes and weakening Social Security’s finances. The White House claims the 2% payroll tax cut won?t impact Social Security; however, we disagree.
“There’s no such thing as a “temporary: tax Cut. If Congress is unwilling to allow tax cuts for wealthy Americans to expire in the midst of economic crisis now, then why would it allow this so-called “holiday” to end in one year? The short answer–it wouldn’t. Americans should expect that when this tax “holiday” ends, restoring Social Security’s funding will be portrayed by those opposed to the program as a massive tax hike, rather than the legislated end of the “holiday”. That leaves Social Security permanently dependent on general fund revenues rather than worker contributions which have successfully funded the program for 75 years. If extended, this payroll tax cut would then double Social Security’s 75 year projected shortfall. This 2% payroll tax cut is the beginning of the end of Social Security as we know it. Worker contributions have successfully funded the program for 75 years and that critical linkage between contributions and benefits is what keeps Social Security a self-funded program. Proposals like this threaten the program’s independence, forcing Social Security to compete for limited federal dollars. Cutting contributions to Social Security isn’t the best way to stimulate the economy. The Tax Policy Center reports the wealthiest 40% of households benefit most from a payroll tax cut. According to The Center for Budget and Policy Priorities, extending the “Making Work Pay Tax Credit” is a much better and targeted stimulus.
For all of these reasons, the National Committee does not support proposals to cut the payroll tax. America’s seniors understand the vital role Social Security plays during these difficult economic times and they’re not willing to trade promises of possible short-term economic gains for real and measurable damage to this vital program which would impact generations of Americans to come.
Social Security COLA Vote Coming Up-Call Congress Today!
Congressional leaders have put emergency COLA legislation on the calendar?with a vote expected as early as tomorrow. Unfortunately, its passage is far from certain.Which makes it more than just ironic (you could say it?s actually infuriating) is that many of the same fiscal hawks who fought hard to keep $4 trillion dollars in tax cuts for the wealthy, will blithely argue on the floor of the Senate and House this week that America can?t afford to give seniors–who will go without a cost of living increase for two consecutive years–$250.Contrary to the ?greedy geezer? mythology preferred by these Washington?s fiscal hawks, the truth about this COLA legislation has absolutely nothing to do their us-versus-them, young-versus-old propaganda. In fact, these $250 one-time payments have been proven to be effective economic stimulus and a job creator, as was the case in 2009:While its share of the overall Recovery Act spending was very small, this lump-sum payment was one of the quickest-acting components of the overall package?the majority of payments were received just months after the Act was passed (by the end of May 2009). This Social Security and SSI payment by itself likely boosted GDP by roughly 0.5% in the second quarter of 2009, which would roughly translate to about 125,000 jobs created or saved due to these payments.?? ?Downpayment on Economic Recovery,? September 2010Ask your representatives in Congress?
?Where do you stand on COLA relief legislation for millions of retirees??
and then
?Where do you stand on extending $4 billion in tax cuts to the wealthy??
The answers to these questions will tell you a lot about Washington?s current fiscal priorities.Pushing tax cuts for the wealthy while rejecting any COLA relief and even proposing benefit cuts in Social Security are not America?s fiscal priorities. This Washington disconnect is not good for our nation or our economic recovery and it?s time we deliver that message loud and clear.Use our 24-hour Legislative Hotline to connect directly to your members:
800-998-0180
Or send an email from our Legislative Action Center. You can see a sample email message there and personalize it with your own message to Congress.
Tell Congress ? it?s time to get their priorities straight!
National Committee President/CEO Barbara Kennelly?s Statement on Failure to Issue a Fiscal Commission Report
?In spite of months of deliberations in a process that appeared intent on reducing the deficit by cutting Social Security, the fiscal commission has failed to reach a consensus on a plan.I?m not surprised given that this fiscal debate spent so much time on the wrong track. Working Americans, who continue to suffer in this economic crisis, want fiscal sanity returned to Washington. However, they also know that Social Security isn?t the problem. Unfortunately, it?s clear that many in Washington will continue to search for a way to reduce Social Security benefits in order to avoid repaying the $2.6 trillion dollars in bonds currently credited to Social Security. That is not fiscal responsibility — that?s $2.6 trillion dollars contributed to Social Security by America?s workers that Washington?s fiscal hawks want to keep.If anything good has come from this commission effort, it?s that the root causes of our fiscal woes have been identified. The commission has begun the process of examining how we can rein in our debt and deficits, which are by definition outside the Social Security portion of the budget. This is where our future efforts must begin.Moving forward, National Committee members believe that Congress must stay focused on reducing the deficit while remembering that today?s middle-income workers are tomorrow?s retirees. Given the economic challenges millions of Americans face now and into the future, it?s clear that preserving and strengthening Social Security benefits should be Washington?s only goal for this program.??Barbara B. Kennelly, President/CEO