Archive for earned benefits

“If Obama wants to help Social Security, he should start by lifting the cap on taxable earnings.”

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grand bargain social security

Today’s L.A. Times letters to the editor, because our voices matter:

Re “Obama’s entitlement gambit,” Opinion, April 10

The current calculation used to determine adjustments to Social Security benefits is based on the cost of living for an urban worker, not a senior. Therefore, it doesn’t account for the greater percentage of income the average senior spends on healthcare. Because the cost of healthcare rises faster than other necessities, even the current formula does not adequately protect seniors from inflation.

Switching to the “chained CPI” to determine payouts, as President Obama proposed to do in his 2014 budget, would only make a bad situation worse.

Steve Mehlman

Beaumont

***

This debate over entitlements is about a long-term solution to a long-term problem. Much more important than getting a deal is getting a good solution.

Can we get a good solution now? Of course not. The partisan divide is deep.

If the president is so concerned with his legacy, maybe he should start doing more of the right things, like restoring traditional tax rates on the wealthiest. Today, CEOs and financiers pay much lower effective federal tax rates than doctors. That is socially unsound.

And if Obama wants to help Social Security, he should start by lifting the cap on taxable earnings.

David Greene

San Pedro

***

Doyle McManus suggests the president is doing “the kind of thing a second-term president can do.” Later, he says the president’s proposal is evidence that he “still yearns for a grand bargain.”

The former declaration is an empty explanation, while the latter justification provokes the question: A grand bargain for whom? Certainly not for the elderly and disabled dependent on Social Security.

Ben Miles

Huntington Beach

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White House and Senate Dems Should Eliminate Social Security Tax Cap for the Rich: Stop CPI Scam on Elderly

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social security tax cap

Your Daily Dose of BuzzFlash at Truthout, via my pal Mark Karlin:

[B]ecause the Obama White House has adopted the austerity meme of the Republicans, the option to the cat food chained CPI doesn’t get discussed much.  That is because Obama, as is often the case, is accepting the GOP and Wall Street “frame” of the deficit being reduced, in part, on the backs of the middle class and poor.  As we’ve noted recently; the president may even believe the false meme.

Remapping Debate, in an April 10 article, Remapping Debate disclosed:

For all the talk of the Social Security system running out of money, it is well established that raising or eliminating the cap on the wages subject to payroll taxes would guarantee a healthy Social Security system for many decades, and do so without cutting benefits or raising the retirement age.

Public support for elimination of the payroll tax cap is high.  [...]

Nevertheless, these routes to ensuring the promises made to workers that they could rely Social Security benefits are kept is little discussed on Capitol Hill. [...]

… That is probably because they don’t want to be undercutting the position of their party’s president. [...]

In The Nation, William Greider developed an interesting theory:

In fact, there is an even bigger lie concealed by the fiscal scolds and ignored by witless media, too. Again and again, self-righteous critics have portrayed Social Security as the profligate monster borrowing from the Treasury and sucking the life out of federal government.

Guess what? It’s the other way around. The federal government borrows from Social Security.  [...]

That is the real crisis that makes the financial barons and their media collaborators so anxious to cut Social Security benefits. They would like to get out of repaying the debt—that is, giving the money back to the people who earned it. The only way to do this is cut the benefits—over and over again. Count on it…

Please read the entire post here.

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Elizabeth Warren on Pres. Obama’s chained CPI proposal: “We cannot allow Social Security to be dismantled inch by inch.”

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elizabeth warren banks

chained cpi social security 2

From my inbox (bolding is mine):

Elizabeth Warren for Massachusetts

Hi Laffy,

My brother David has always had the special spark in our family.

Like our two older brothers, David served in the military. When he got out, he started a small business — and when that one didn’t work out, he started another one. He couldn’t imagine an America where he wasn’t living by his wits every single day.

Year after year, my brother paid into Social Security. He never questioned it. He figured he was paying so that he — and a lot of other people — could have a secure retirement.

Today my brother lives on his Social Security. That’s about $1,100 a month. $13,200 a year.

I’m telling you my brother’s story not because it’s unusual, but because it’s like the story of so many other people. I can almost guarantee that you know someone — a family member, friend, or neighbor — who counts on Social Security checks to get by.  

That’s why I was shocked to hear that the President’s newest budget proposal would cut $100 billion in Social Security benefits. Our Social Security system is critical to protecting middle class families, and we cannot allow it to be dismantled inch by inch.    

The President’s policy proposal, known as “chained CPI,” would re-calculate the cost of living for Social Security beneficiaries. That new number won’t keep up with inflation on things like food and health care — the basics that we need to live.

In short, “chained CPI” is just a fancy way to say “cut benefits for seniors, the permanently disabled, and orphans.”

Two-thirds of seniors rely on Social Security for most of their income; one-third rely on it for at least 90% of their income. These people aren’t stashing their Social Security checks in the Cayman Islands and buying vacation homes in Aruba – they are hanging on by their fingernails to their place in the middle class.

My brothers and I grew up in an America that invested in its kids and built a strong middle class. An America that allowed millions of children to rise from poverty and establish secure lives. An America that created Social Security and Medicare so that seniors could live with dignity.

We can’t chip away at America’s middle class and break the promise we make to our seniors.

Thank you for being a part of this,

Elizabeth

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Fox: “Federal Budget Deficit Shrinks in March from Year Prior.” Since the deficit is shrinking, leave earned benefits alone

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chart deficits lower under Obama

shrinkage smaller

This news comes to us by way of Fox, so of course, they must have broken it begrudgingly:

The U.S. federal budget deficit fell to $107 billion in March, compared to $198 billion in the same month in 2012, the Treasury Department said. The year-to-date budget gap stood at $600 billion, also less than the $779 billion logged over a comparable period in 2012.

So considering the deficit CONTINUES to shrink, then how about we leave chained CPI out of this whole budget plan thing, mmkay? President Obama? Please do not proceed. Leave our earned benefits alone.

ronald reagan against the machine

“Social Security has nothing to do with the deficit.” Thankyouverymuch:

chained cpi social security

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“So the White House can’t get even a basically Republican budget passed.”

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grand bargain social security 2

I expressed my disappointment over President Obama’s alleged proposed cutbacks to Social Security and Medicare in my previous post, Sen. Bernie Sanders: “Having [Obama] go back on his word will only add to the rampant political cynicism…”

I also provided a way to contact your Senators.

And with that, your Daily Dose of BuzzFlash at Truthout, via Mark Karlin: 

Obama either continues to believe in the now inexcusably naïve notion of “bi-partisanship” or he is, as some will argue, at heart a fiscal corporate neo-liberal Wall Street true believer [...]

The NYT, which clearly received the leak about the Obama budget from White House sources, is reflecting an Oval Office viewpoint that the president is compromising in order to win over “moderate” Republican votes.  Say what? Earth to planet Obama: have you learned nothing from continually starting negotiations with the Republicans letting them advance to 10 yards of their goal – and them allowing them to walk over into the end zone for a victory twist and shake?

If you want to know the low threshold of weakness Obama is negotiating from, read the viewpoint of his aides, as reported in the NYT:

Neither the president nor senior aides privately hold much hope that Republican leaders — Mr. Boehner and Senator Mitch McConnell of Kentucky, the Senate Republican leader — will compromise. So Mr. Obama’s strategy of reaching out to other Senate Republicans reflects a calculation that enough of them might cut a budget deal with the Democratic Senate majority. If that happens, the reasoning goes, a Senate-passed compromise would put pressure on the House to go along.

Uh, so the White House can’t get even a basically Republican budget passed – with some crumbs of federal spending.  They have to, as they see it, concede grovel and pray.

Bill Clinton said a long time back: “We [Democrats] have got to be strong. When we look weak in a time where people feel insecure, we lose.  When people feel uncertain, they’d rather have somebody who’s strong and wrong than somebody’s who’s weak and right.”

Doesn’t Obama run the danger, in his budget and many of his legislative proposals of appearing both weak and wrong?

Or is it that he actually believes in what he is proposing? [...]

[H]istory will judge him – and the seniors, unemployed, and poor who watch helplessly — as President Obama thrusts a stake through the heart of the New Deal, while perpetuating a system of systemic oligarchy.

Please read the entire post here.

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Sen. Bernie Sanders: “Having [Obama] go back on his word will only add to the rampant political cynicism…”

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grand bargain social securitychained cpi social security

Hey, remember this? V.P. Biden “flat guarantees” no changes in Social Security, which “effectively takes Social Security off the table.”

So this happened: Obama budget would cut entitlements in exchange for tax increases:

President Obama will release a budget next week that proposes significant cuts to Medicare and Social Security and fewer tax hikes than in the past, a conciliatory approach that he hopes will convince Republicans to sign onto a grand bargain that would curb government borrowing and replace deep spending cuts that took effect March 1. [...]

Obama proposes, for instance, to change the cost-of-living calculation for Social Security in a way that will reduce benefits for most beneficiaries, a key Republican request that he had earlier embraced only as part of a compromise. Many Democrats say they are opposed to any Social Security cuts and are likely to be furious that such cuts are now being proposed as official administration policy. [...]

Overall, the budget request reflects Obama’s stark shift in strategy over the last month, as he has adopted a far more congenial posture toward the opposition

“Millions of working people, seniors, disabled veterans, those who have lost a loved one in combat, and women will be extremely disappointed if President Obama caves into the long-standing Republican effort to cut Social Security,” Sen. Bernard Sanders (I-Vt.), who caucuses with Democrats, said earlier this week, after reports surfaced that Obama might include the change in his budget.

“In 2008, candidate Barack Obama told the American people that he would not cut Social Security. Having him go back on his word will only add to the rampant political cynicism that our country is experiencing today.”

“Disappointed” indeed.

Why does President Obama still not grasp that Republicans do not like him  (maybe he does), refuse to compromise (maybe he doesn’t), and will continue to do everything they can to obstruct sensible Democratic plans and to make mincemeat of his legacy? They’ve always wanted him to fail, and they continue to want him to fail. They’re doing whatever it takes to make that happen. As has always been the case, they have no intention of working with him, only against him, the well-being of the rest of us be damned.

Why does he still insist on bargaining from the center and moving right instead of starting from the left and moving center-left? Well, for one thing, as I’ve always said, he’s no liberal, as I made clear in this post:

…President Obama’s willingness to cut Social Security benefits? Or his strong consideration of signing off on a disaster-in-waiting (see: State Dep’t. draft report looks promising for backers of Keystone XL pipeline)? Or his indefinite detention of detainees at Guantanamo Bay? Or his stance on wiretaps? Or his reluctance to go after Bush, Cheney, and company for lying us into a fraudulent invasion of a sovereign country and torturing prisoners? Or allowing nearly all of the Bush tax cuts to remain in place? Some liberal.

It’s one thing to be realistic and understand where a deal will likely end up. It’s another to break promises, to doom any chances of keeping the programs intact that those on the left (and most voters) hold dear and rely upon, and to cater far more to those on the right.

The GOP was going to reject Democratic ideas regardless of what the president came in with, so why not begin negotiations with a more Progressive stance and one that is more popular overall?

Here’s an idea, why not eliminate the payroll tax earnings cap? Oh, and there’s this. The sequester was designed to force Democrats into supporting a Grand Bargain.

The following chart is from StrengthenSocialSecurity.org. Please follow the link to see how proposed changes would also affect veterans, and so much more.You can find more charts and information here, too.

chart social security chained CPI

The important thing to know is that this change would cut the benefits of all beneficiaries, including current retirees, disabled workers, and others–even after politicians promised repeatedly that any changes to Social Security would not affect current beneficiaries. The COLA cut is a real threat to the financial security of every American who does currently or will rely on Social Security.

And please read Why Social Security Recipients Shouldn’t Be Shackled With The Chained CPI. More here.

The always astute Dave Johnson (@dcjohnson) had this to say in an email:

The Obama budget is going to offer “Grand Bargain” cuts in Social Security and Medicare, hoping to get Republicans to offer tax increases. We are heading into a retirement crisis. The 401K experiment didn’t work. Companies have pulled back on pensions. And the squeeze that has been on regular people for decades means that people also do not have the savings they need to get them through old age. And all the money went to the top. The last thing the country needs is cuts in essential services for the elderly.

Who Could Have Predicted:

“If the president believes these modest entitlement savings are needed to help shore up these programs, there’s no reason they should be held hostage for more tax hikes. That’s no way to lead and move the country forward,” Boehner said in a statement.

If they say they are offering to ”protect”  the oldest and poorest from this, then what does this mean is going to happen to the rest?

Want to try to make a difference? Contact your Senators here. I just did.

grand bargain social security 2

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“Like NRA who scares the Bejesus out of elected officials when we talk gun control, rich do same with loop holes”

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gutting

Another guest post is by our pal and regular TPC contributor, David Garber:

 WHO’S GUTTING WHO?

Here’s the headline currently on Huffington post: “Obama: ‘We’re Probably Not Gonna Get A Deal’ If GOP Insists On ‘Gutting’ Medicare, Social Security, Medicaid”

Okay, on the surface, that sounded reasonable until I focused on the word, Obama’s word, ‘Gutting’. Wait a minute — that should be touching, not gutting. Stop way before gutting. The holy trinity cannot be touched. Period.

Why are we even discussing this? Has Obama lost sight of his victory from last November? Here we are, just beginning his second term, and he’s out trying to strike a grand bargain. Why? Is America clamoring for one? Maybe, but not the one Obama or the Republicans are talking about.

What we the people are looking for is a deal on immigration reform and gun control. And jobs.

But do you know what we need even more? An overhaul to the tax system. We want a fair and efficient system — with more revenue for the Dems and less government for the Repubs. And you want to know how easy that is to accomplish? Very.

Don’t let the liars in Washington fool you. Or the shortsighted news readers on the TV and radio. Overhaul is as simple as a stroke of the pen.

How? Simply slash the outrageous tax breaks for the super rich. Before you tune me out, just consider this:

  • No more yacht write-offs (how many people do you know that have a yacht? You pay taxes to cover their write-off).
  • No more private jet write-offs (again, how many people do you know that have private jets? You’re paying for their write off with your taxes).
  • No more corporate off shore stashing of profits to avoid taxes (you have to pay taxes, why shouldn’t they?).
  • No more subsidies to oil companies thus giving them billions in profits with unfair write-offs like off-shore banking. (You’re paying for it with your taxes).
  • No more tax breaks to companies for outsourcing jobs. (Yes, we give a break if a company hires workers in a foreign land as opposed to a legal worker here in the states.)
  • No more giving free money to banks (too large to fail or jail) thus giving them even larger corporate writeoffs for managing the money they’ve been loaned).

Do you realize we give big banks interest-free money and let them keep it and call it profits? Yup, and they’re not even encouraged to use it for customer loans or service. It’s OUR TAX MONEY. Yet go in and try to get a loan. Good luck.

If a big bank needs cash to stay afloat, force them to use that money for loans to individuals and small businesses, or else the bank must return the money within two years WITH a punitive interest payment for the use of the money. If you borrowed money, whether you used it or not, you’d have to pay the piper. Why not JP Morgan/Chase or Citibank?

Implement these suggestions and watch how quickly financial institutions start giving out home mortgages to those who qualify or start up capital for small businesses to get launched. Need new equipment to modernize your small company? The banks will loan it because if they don’t, they will have to pay interest. Watch the economy jump then. Big banks will become smaller and new banks will start up and carry those who leave the big established financial institutions for those who care about their customers. No depositor will be losing money. Nor will the banks unless they’re unscrupulous, in which case, leave them. There will be options.

What’s holding us back are loopholes that should never have been in existence in the first place. Their purpose has long since retired — along with the crooks who wrote them into the tax codes.

And just like the NRA who scares the Bejesus out of our elected officials when we talk any sort of gun control, the rich do the same if you threaten their loop holes.

Politicians think only the rich put money into their campaigns so the poor and middle class don’t matter. Ask Karl Rove how that went. Our vote is what they need even more than money. And our vote counts just as much as the millionaires’ or business tycoons’.

So demand what’s important — our elected representatives start representing us — the poor and middle class. The rich don’t need our help. Obama and Congress should be talking about gutting — but gutting the tax system, not our security nets.

The Holy Trinity, Medicare, Social Security and Medicaid cannot be tampered with. They’re not the problem. We can even improve them and cut our taxes at the same time — hear that, Republicans, tax cut — if you stop protecting your rich cronies and do your job.

Congress, we can remove you — and we will. We’ll gut you (with our votes) like Jack the Ripper — a sacrifice that’s more important than gutting 99% of the public. Dump the Chump!

For the past 25 years, David Garber has been serving as the show runner and or writer on some of television’s biggest hits… Saved By The Bell, Power Rangers, 227, Bill Cosby Show and many other network series. His writing and producing have also netted David two very prestigious awards:the PRISM AWARD and the TV CRITICS AWARD – TV SPECIAL OF THE YEAR. Currently he’s authoring a short story series called “A Few Minutes With…”

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