THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY & MEDICARE
~ Trusted ~ Independent ~ Effective ~
January 20, 2012
NEWS RELEASE
Don’t Make Seniors Pay for Payroll Tax Holiday
The National Committee opposes extending Social Security payroll cuts beyond February 29 and, as an alternative, calls on Congress to renew the “Making Work Pay” tax credit. NCPSSM President/CEO, Max Richtman, told Members of Congress in a letter dated January 20th that the payroll tax cut could undermine Social Security’s integrity as a self-financing program. He also objected to any proposals to cut Medicare to pay for this proposal.
“We are particularly troubled by the insistence of some lawmakers to use Medicare to help pay for the payroll tax cut. If cuts in benefits or increased cost sharing were to be made, Medicare beneficiaries would be required to help pay for a tax cut from which most of them would not benefit. The unfairness of such measures is, we believe, obvious.
The National Committee appreciates the importance of a strong and healthy economy in protecting the financial well-being of all Americans, young and old alike. While we agree that providing tax relief to middle class Americans is likely to help our economic recovery continue, we do not believe that extending or expanding cuts to Social Security’s revenue stream is the best way to accomplish this goal.” Max Richtman , NCPSSM President/CEO
The National Committee has prepared a new analysis of the payroll tax cut and proposals to pay for this legislation. NCPSSM’s analysis is available on our website at: https://www.ncpssm.org/news/archive/vp_payroll_tax_cut_debate/ and shows there are more effective ways to provide stimulus which don’t threaten Social Security’s financial integrity. As an alternative to extending the payroll tax cut, the National Committee urges conferees to extend the “Making Work Pay” tax credits. “Making Work Pay” is preferable to the payroll tax holiday because it is available to all workers, not just those covered by Social Security (approximately 6 million state and local government workers do not pay into Social Security) and it is more favorable to workers earning less than $20,000. The payroll tax holiday would provide a worker earning $100,000 a tax cut that would be ten times greater than the one received by a worker earning $10,000. The National Committee’s payroll tax letter to Congress is on our website at: www.ncpssm.org .
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