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From the monthly archives: February 2018

We are pleased to present below all posts archived in 'February 2018'. If you still can't find what you are looking for, try using the search box.

Lifting Social Security Payroll Tax Cap Would be a Valentine to Seniors

This Valentine’s Day marks the date when Americans with wages exceeding $1 million stop paying into Social Security for the year.  That’s because anyone earning at least that much hits the Social Security payroll tax cap of $128,400, barely seven weeks into 2018.  In stark contrast, the average American worker contributes payroll taxes throughout the year.  

“This red letter day takes on added significance because of the need to address the long-term solvency of Social Security and a political climate where seniors’ earned benefits are under constant threat.” - Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare.

The payroll tax cap prevents billions of additional dollars from flowing into the Social Security Trust fund, which is projected to be able to pay about 80% of benefits beginning in 2034 if Congress takes no action. While some on the political right have advocated cutting benefits and raising the retirement age to address the shortfall, the National Committee believes that benefits should be boosted and the program’s solvency strengthened by lifting the payroll tax cap – so that millionaires pay their fair share. 

"Normal Americans pay social security tax on every cent of income they earn throughout their entire lives, but millionaires like me pay it on just a fraction of our earnings. By raising the cap on payroll taxes, we can guarantee that millionaires pay the same rate as everyone else, and we can ensure that our seniors live and retire in dignity." - Morris Pearl, Chair of Patriotic Millionaires 
"Instead of providing massive tax cuts to the richest one percent, we should be making them pay their fair share by scrapping the cap.  America is facing a retirement crisis, and by scrapping by the cap, we can ensure fully-funded Social Security benefits for all generations to come." - Frank Clemente, Executive Director, Americans for Tax Fairness,
Raising the payroll tax cap needn’t be an elusive goal.  There is already legislation in Congress to do just that.  Senator Bernie Sanders’ Social Security Expansion Act would subject earned income over $250,000 to the Social Security payroll tax. Congressman John Larson’s Social Security 2100 Act would apply the payroll tax to wages above $400,000, then phase out the cap altogether.  Both bills would modestly increase Social Security benefits and keep the system solvent for most of this century.
Perhaps someday – I hope very soon – we will not have to mark this day in mid-February that represents such a gross disparity in what working Americans and the wealthy contribute to Social Security.” - Max Richtman.

 For a more detailed analysis of the President's 2019 budget, click here

Trump 2019 Budget Shortchanges Seniors, Poor, Disabled

President Trump released an FY 2019 budget today proposing deep spending reductions for Medicare, Medicaid, Social Security Disability Insurance (SSDI), and myriad other federal programs that help older Americans, the poor, and people with disabilities.

“This budget once again lays bare the Trump administration’s terribly misguided priorities.  In the wake of massive tax cuts for the wealthy and profitable corporations, President Trump proposes to slash programs that help retirees and working Americans attain proper medical care and make ends meet.  Not only is this budget callous toward society’s most vulnerable, it breaks explicit promises that candidate Trump made to the American people ‘not to touch’ Medicare and Medicaid.” -  Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. 

Here are some of the highlights (or lowlights) of the President’s proposed FY 2019 budget that impact society’s most vulnerable:

*Some $500 billion in Medicare spending reductions over ten years, most of which would affect providers and suppliers, but could potentially impact beneficiaries, too.

*$1.4 trillion in cuts to Medicaid (which covers long-term care for millions of seniors).   

*Some $700 billion in spending reductions from “repealing and replacing Obamacare.”

*$64 million in cuts to Social Security Disability Insurance (SSDI).

*Reduces the Social Security Administration’s request for administrative funding by $90 million from FY 2017 levels, which would further exacerbate SSA's customer service issues.

*Defunds the Low Income Home Energy Assistance Program (LIHEAP), which helps low income seniors pay their heating bills.

In stark contrast to the Trump budget, Congress last week struck a bipartisan deal to lift spending caps on non-defense discretionary spending, making billions of dollars available to many of the domestic programs that the White House proposes to cut. 

“We strongly favor the bipartisan budget agreement in Congress, which recognizes the real and growing needs of working class Americans. To the extent that the president’s budget is mostly a ‘messaging document,’ we roundly reject the administration’s message that federal taxation and spending policy should favor the wealthy and powerful --- at the expense of the elderly, poor, and the disabled.” - Max Richtman
Click here for a more detailed analysis of the President's 2019 budget.

Bipartisan Budget Bill a Pretty Good Deal for Seniors

The bipartisan budget bill passed by Congress early this morning is, on balance, good news for seniors and the federal programs that provide them with financial and health security. 

“Seniors will feel these changes in their pocketbooks and even in the way they feel physically. We have been fighting for these measures for quite some time and are happy to see Congress take action on a bipartisan basis.” - Max Richtman, National Committee president 

On the positive side, the budget bill:

*Closes Medicare Part D “donut hole” in 2019.  The prescription drug coverage gap embedded in the original law, which the Affordable Care Act has been gradually closing, will be altogether eliminated one year early. This will save seniors thousands of dollars in out-of-pocket prescription drug costs.

*Repeals Medicare therapy caps.  The bill scraps arbitrary caps on physical, speech, language and occupational therapies that have cost seniors money – or delayed care at crucial times.  Beneficiaries will now find it easier – and more affordable – to get the therapies they need without undue interruption. 

*Lifts non-defense domestic spending caps, allowing Congress to appropriate more adequate funding for the Social Security Administration’s operating budget. The SSA has suffered from draconian budget cuts since 2011 which have impinged on customer service, even as 10,000 Baby Boomers retire every day.  This badly-needed (but yet unspecified) higher level of funding should allow SSA to improve customer service for the program’s 67 million beneficiaries.

On the negative side, the bill increases Medicare premiums for some individuals by further expanding Medicare means-testing. 

“Congress continues to expand Medicare means-testing, and they will not stop until middle-class seniors are burdened with higher Medicare premiums.” - Max Richtman.

Here is a more detailed summary of the budget bill’s implications for seniors. 

For more on this story, view our Behind the Headlines broadcast live from Capitol Hill here





   

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