President’s Social Security Plan Reneges on Promise to Middle Class Americans
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: