Archive for social security

“How about a red line on chipping away at Social Security to preserve low taxes on the wealthy?”

red line syria

Reminder: In August 2012, V.P. Biden “flat guaranteed” no changes in Social Security, which “effectively takes Social Security off the table.”

Apparently not.

Chained CPI is a benefit cut. Please go to Strengthen Social Security for more. And here’s more about what “chained CPI” would do (scroll).

And with that, here is today’s (very short) L.A. Times letter to the editor, because our voices matter:

Re “White House wants Syria proof,” April 26

President Obama established a “red line” on Syria’s use of chemical weapons. How about a red line on chipping away at Social Security to preserve low taxes on the wealthy?

Russ Nichols

Los Angeles

Social Security belongs to all of us. Don’t let them cut it.

social security no cuts obamaPetition here

chained cpi food purchase cutschart graph chained cpi reduced paymentsSocial Security belongs to all of us. Don’t let them cut it!

August 2012: V.P. Biden “flat guarantees” no changes in Social Security, which “effectively takes Social Security off the table.”

So much for that “guarantee.”

Via Strengthen Social Security:

Some politicians in Washington are preparing to cut your Social Security COLA for good–even after two years without getting a COLA. This COLA cut has an obscure name: chained-CPI. But it would do real damage by changing the formula used to calculate the COLA. Here’s what you need to know about it:

  • It’s a benefit cut. It’s not some minor technical change to the COLA. It’s a real cut to the benefits you have earned every year into the future.

  • It cuts benefits more with every passing year. After 10 years, your benefits would be cut by about $500 a year for the average retiree. After 20 years, your benefits would be cut by about $1,000 a year.

  • It hits today’s Social Security beneficiaries. Politicians like to say that their cuts to Social Security will not affect those getting benefits today. Wrong! Switching to the chained-CPI would hit all current beneficiaries.

  • We need a higher COLA, not a lower one. The current COLA is not large enough–it does not adequately account for large health care cost increases faced by seniors and people with disabilities.

Please go to Strengthen Social Security for more. And here’s more about what “chained CPI” would do (scroll).

Howard Dean: “If this passed I would have to reevaluate if I belong in the Democratic Party.”

howard dean

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Points off for misspelling "independent," but anyway…

As BuzzFeed notes, Howard Dean is none too thrilled about the president's budget proposals, specifically over the increased defense spending and those wrongheaded Social Security cuts by way of the chained CPI plan. Here are all our posts about how such policies would negatively affect the elderly and disabled (scroll).

How about lifting the cap on taxable earnings, Mr. President? Or at least try to? Or at least voice support for those of us who would like some debate about that instead of contradicting your own vice president's 2012 campaign promise? Here’s what “chained CPI” would do.

I'm not sure I'd go as far as Howard Dean, but I would be very disappointed.

Dean:

"I just think that's unacceptable… If this passed I would have to reevaluate if I belong in the Democratic Party. If this were passed with Democratic votes, I think it would be impossible to be Democrat…. I would have to oppose any Democrat that is supportive of this… If the businessweek.com article I sent you is correct, it means the Prez proposed chain CPI cutting SS benefits while asking to restore Pentagon spending. He would never get that through either chamber… What the hell are they thinking or is BW wrong?… I don't think Democrats will vote for it… I can't imagine Republicans voting for this in swing districts."

More at BuzzFeed.

What I will not write about today

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Sometimes I get so frustrated and/or disheartened and/or annoyed by some of the news stories of the day that I can’t bring myself to write about them. Here are a few recent reports that made my blood pressure hit the roof. I am avoiding delving into them at length out of concern for my physical and mental health.

See what I mean? So who’s up for a couple of Margs or a trough of wine?

 drunk v alcoholic

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

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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

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

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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.

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

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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