Robbing the Poor to Feed the Rich
It?s curious how quickly some in Washington have amnesia when it comes to discussing our nation?s deficit. Fiscal hawks in the House and Senate, who were adamant about extending Bush?s tax cuts for the rich (which would increase the deficit by more than $700 billion over the next two years) now insist they want to ?get serious? about the deficit by cutting Social Security. Very curious, indeed.Ignoring the fact that Social Security has a $2.6 trillion surplus and does not contribute to the deficit, fiscal hawks like Sen. Lindsey Graham (R-SC) are already on record saying they refuse to vote on raising the debt ceiling in March, without significant cuts to Social Security. Raising the debt ceiling is necessary to avoid economic disaster and default on U.S. debt obligations. Despite this, Graham still wants to take Social Security hostage:
The U.S. will likely need to increase its debt ceiling this spring, and Congress blocking that would be very bad for the country, Graham said.?To not raise the debt ceiling could be a default of the United States? bond and Treasury obligations,? he said. ?But this is an opportunity to make sure the government is changing its spending ways. I will not vote for the debt ceiling increase until I see a plan in place that will deal with our long-term debt obligations, starting with Social Security.?Making Social Security solvent will likely require raising the age when benefits can be taken and testing individuals for whether they financially need to tap the system, he said. That test should also apply for Medicare Part D, the prescription drug program.
As the new Republican majority House of Representatives readies for 2011, all reports say the focus will be on austerity and spending cuts. Brian Reidl, of the conservative Heritage Foundation, has outlined a deficit reduction plan for House Republicans to consider, that would cut Social Security.
?The difficulty for Republicans is that they?re concentrating their cuts in a small sliver of the budget,? Mr. Riedl said. ?They should also be addressing large entitlement programs, such as Medicare and Social Security, which are the main source of our budget problems. Cutting $100 billion from these other programs isn?t just a matter of eliminating waste, fraud and abuse. It will involve real cuts in real programs.?
The threats to Social Security are real. Despite the fact most Americans have not recovered from the recession and suffered serious losses in their 401(k)s and savings, some in Washington still would take away what little economic cushion lower and middle income workers have left for their future. This is why the National Committee to Preserve Social Security and Medicare will start a new radio ad campaign tomorrow, when the 112th Congress convenes, reminding our representatives ?Hands Off Social Security!?If you want to send a reminder of your own, use the National Committee?s E-Card, which can be sent to Senate Majority Leader Harry Reid, Speaker of the House John Boehner, Senate Minority Leader Mitch McConnell and House Minority Leader Nancy Pelosi.
Happy Holidays: Will 2011 Be a Brighter New Year?
Boomers are also more downbeat than other adults about the long-term trajectory of their lives — and their children’s. Some 21% say their own standard of living is lower than their parents’ was at the age they are now; among all non-Boomer adults, just 14% feel this way, according to a May 2010 Pew Research survey. The same survey found that 34% of Boomers believe their own children will not enjoy as good a standard of living as they themselves have now; by contrast, just 21% of non-Boomers say the same.2 Economically, Boomers are the most likely among all age groups to say they lost money on investments since the Great Recession began. Baby Boomers also are the most likely (57%) to say their household finances have worsened. And a higher share of Boomers than older Americans (but not younger ones) say they have cut spending in the past year. Among those Baby Boomers ages 50 to 61 who are approaching the end of their working years, six-in-ten say they may have to postpone retirement. According to employment statistics, the older workforce is growing more rapidly than the younger workforce.
And if Washington fiscal hawks have their way in the New Year, future generations of Americans will face even longer work lives and less Social Security benefits in their retirement, meaning even more economic uncertainty than workers and retirees are facing now. Hard to imagine, right?This is not the kind of future working Americans have dreamed for themselves or their children. That?s why the National Committee will mark the New Year with a new campaign to remind Washington that cutting Social Security benefits is NOT fiscal responsibility. We?ll mobilize our members and advocates as part of our National Committee Truth Squad to ensure the White House and Congress understands cutting benefits for millions of middle-class Americans under the guise of deficit reduction is simply not an option. We?ll have more details about our 2011 Social Security campaign the first week of January. Until then?
Happy Holidays from the National Committee!
A Holiday Only Scrooge Could Enjoy
Will Washington Keep it’s Promise to Generations of Working Americans?
Senate Vote on Tax Cuts: 3pm
The Senate is expected to vote this afternoon to end debate on the bill that extends the Bush tax cuts for the wealthy and cuts $120 billion in payroll contributions to Social Security. The vote for passage could then come as early as tomorrow.Email your Senator today. NOWis the time for seniors and working Americans to say enough is enough. There are other ways to stimulate the economy without extending tax cuts for the rich combined with cuts to Social Security?s funding. Some of those other ways? Seniors advocates have proposed extending, or even expanding, the ?Making Work Pay? tax credit or reducing employees income tax liability. However, as economist and IWPR President, Heidi Hartmann, explains the White House has shown no interest in alternatives:
What is most troubling now is that even though the risk to Social Security has been pointed out to the White House, these same staffers continue to insist that the rebate must take the form of a payroll tax cut delivered in every paycheck in 2011 and that other alternatives won?t do. For example, Congressman Brad Sherman has suggested issuing a rebate check to each worker early in 2011 for 2 percentage points of the 6.2 percent FICA tax each paid in 2010. Dollar-wise, that?s essentially the same as giving workers 2 percentage points in 2011. Sure, there will be more workers in 2011 (if we?re lucky and get some employment growth), but they could be included by issuing rebate checks early in 2012 based on what they earned in 2011. Also, even though research shows that lump sums aren?t spent as readily as smaller amounts, the portion spent after 3-6 months is quite substantial. And since we will need stimulus all through 2011, the difference between these two distribution systems can?t be so great as to make the Sherman alternative totally unacceptable to the White House ? when it has the very important advantage of never reducing the payroll tax rate to 4.2 percent and so never having to figure out how to get it back up to 6.2 percent. While Sherman?s proposal virtually mimics the payroll tax cut, Nancy Altman, co-chair of Social Security Works and a leading advocate against the payroll tax rate cut, suggests a more progressive alternative, one that would likely increase the stimulative value of the tax cut ? an identical lump sum to every worker who paid FICA tax. Such a method would direct more dollars toward lower earners (the average benefits would be on the order of $800) and therefore generate more spending.
Social Security Works has created a graph which clearly shows how this Payroll Tax cut benefits higher earners. While the President and members of Congress would receive $0 under the “Making Work Pay” tax credit extension, they will receive $2,136 in tax cuts under this payroll tax proposal. A minimum wage earner received $400 from “Making Work Pay” in 2010 and could receive $800 if extended again. However, under this payroll tax plan that same worker receives $302. Under this flawed payroll tax plane, millions of state, local and federal workers who are not covered by Social Security receive absolutely nothing.The American people understand that cutting funding to Social Security makes no sense and it?s not even the most effective way to provide stimulus to working Americans.Call your Senator and member of Congress TODAY.We?ve created a number of easy one-step ways for you to connect with your Senator and Congressional representatives. To phone them?call our Legislative Hotline at:
800-998-0180
Would you rather send an email? Go to our Leg Action Center whereyou can use our sample Payroll Tax Holiday letter or, even better, write your own.
Legislative Action Center
Robbing the Poor to Feed the Rich
The U.S. will likely need to increase its debt ceiling this spring, and Congress blocking that would be very bad for the country, Graham said.?To not raise the debt ceiling could be a default of the United States? bond and Treasury obligations,? he said. ?But this is an opportunity to make sure the government is changing its spending ways. I will not vote for the debt ceiling increase until I see a plan in place that will deal with our long-term debt obligations, starting with Social Security.?Making Social Security solvent will likely require raising the age when benefits can be taken and testing individuals for whether they financially need to tap the system, he said. That test should also apply for Medicare Part D, the prescription drug program.
As the new Republican majority House of Representatives readies for 2011, all reports say the focus will be on austerity and spending cuts. Brian Reidl, of the conservative Heritage Foundation, has outlined a deficit reduction plan for House Republicans to consider, that would cut Social Security.
?The difficulty for Republicans is that they?re concentrating their cuts in a small sliver of the budget,? Mr. Riedl said. ?They should also be addressing large entitlement programs, such as Medicare and Social Security, which are the main source of our budget problems. Cutting $100 billion from these other programs isn?t just a matter of eliminating waste, fraud and abuse. It will involve real cuts in real programs.?
The threats to Social Security are real. Despite the fact most Americans have not recovered from the recession and suffered serious losses in their 401(k)s and savings, some in Washington still would take away what little economic cushion lower and middle income workers have left for their future. This is why the National Committee to Preserve Social Security and Medicare will start a new radio ad campaign tomorrow, when the 112th Congress convenes, reminding our representatives ?Hands Off Social Security!?If you want to send a reminder of your own, use the National Committee?s E-Card, which can be sent to Senate Majority Leader Harry Reid, Speaker of the House John Boehner, Senate Minority Leader Mitch McConnell and House Minority Leader Nancy Pelosi.
Happy Holidays: Will 2011 Be a Brighter New Year?
Boomers are also more downbeat than other adults about the long-term trajectory of their lives — and their children’s. Some 21% say their own standard of living is lower than their parents’ was at the age they are now; among all non-Boomer adults, just 14% feel this way, according to a May 2010 Pew Research survey. The same survey found that 34% of Boomers believe their own children will not enjoy as good a standard of living as they themselves have now; by contrast, just 21% of non-Boomers say the same.2 Economically, Boomers are the most likely among all age groups to say they lost money on investments since the Great Recession began. Baby Boomers also are the most likely (57%) to say their household finances have worsened. And a higher share of Boomers than older Americans (but not younger ones) say they have cut spending in the past year. Among those Baby Boomers ages 50 to 61 who are approaching the end of their working years, six-in-ten say they may have to postpone retirement. According to employment statistics, the older workforce is growing more rapidly than the younger workforce.
And if Washington fiscal hawks have their way in the New Year, future generations of Americans will face even longer work lives and less Social Security benefits in their retirement, meaning even more economic uncertainty than workers and retirees are facing now. Hard to imagine, right?This is not the kind of future working Americans have dreamed for themselves or their children. That?s why the National Committee will mark the New Year with a new campaign to remind Washington that cutting Social Security benefits is NOT fiscal responsibility. We?ll mobilize our members and advocates as part of our National Committee Truth Squad to ensure the White House and Congress understands cutting benefits for millions of middle-class Americans under the guise of deficit reduction is simply not an option. We?ll have more details about our 2011 Social Security campaign the first week of January. Until then?
Happy Holidays from the National Committee!
A Holiday Only Scrooge Could Enjoy
Will Washington Keep it’s Promise to Generations of Working Americans?
Senate Vote on Tax Cuts: 3pm
The Senate is expected to vote this afternoon to end debate on the bill that extends the Bush tax cuts for the wealthy and cuts $120 billion in payroll contributions to Social Security. The vote for passage could then come as early as tomorrow.Email your Senator today. NOWis the time for seniors and working Americans to say enough is enough. There are other ways to stimulate the economy without extending tax cuts for the rich combined with cuts to Social Security?s funding. Some of those other ways? Seniors advocates have proposed extending, or even expanding, the ?Making Work Pay? tax credit or reducing employees income tax liability. However, as economist and IWPR President, Heidi Hartmann, explains the White House has shown no interest in alternatives:
What is most troubling now is that even though the risk to Social Security has been pointed out to the White House, these same staffers continue to insist that the rebate must take the form of a payroll tax cut delivered in every paycheck in 2011 and that other alternatives won?t do. For example, Congressman Brad Sherman has suggested issuing a rebate check to each worker early in 2011 for 2 percentage points of the 6.2 percent FICA tax each paid in 2010. Dollar-wise, that?s essentially the same as giving workers 2 percentage points in 2011. Sure, there will be more workers in 2011 (if we?re lucky and get some employment growth), but they could be included by issuing rebate checks early in 2012 based on what they earned in 2011. Also, even though research shows that lump sums aren?t spent as readily as smaller amounts, the portion spent after 3-6 months is quite substantial. And since we will need stimulus all through 2011, the difference between these two distribution systems can?t be so great as to make the Sherman alternative totally unacceptable to the White House ? when it has the very important advantage of never reducing the payroll tax rate to 4.2 percent and so never having to figure out how to get it back up to 6.2 percent. While Sherman?s proposal virtually mimics the payroll tax cut, Nancy Altman, co-chair of Social Security Works and a leading advocate against the payroll tax rate cut, suggests a more progressive alternative, one that would likely increase the stimulative value of the tax cut ? an identical lump sum to every worker who paid FICA tax. Such a method would direct more dollars toward lower earners (the average benefits would be on the order of $800) and therefore generate more spending.
Social Security Works has created a graph which clearly shows how this Payroll Tax cut benefits higher earners. While the President and members of Congress would receive $0 under the “Making Work Pay” tax credit extension, they will receive $2,136 in tax cuts under this payroll tax proposal. A minimum wage earner received $400 from “Making Work Pay” in 2010 and could receive $800 if extended again. However, under this payroll tax plan that same worker receives $302. Under this flawed payroll tax plane, millions of state, local and federal workers who are not covered by Social Security receive absolutely nothing.The American people understand that cutting funding to Social Security makes no sense and it?s not even the most effective way to provide stimulus to working Americans.Call your Senator and member of Congress TODAY.We?ve created a number of easy one-step ways for you to connect with your Senator and Congressional representatives. To phone them?call our Legislative Hotline at:
800-998-0180
Would you rather send an email? Go to our Leg Action Center whereyou can use our sample Payroll Tax Holiday letter or, even better, write your own.