Go Home

Social Security

443 documents found in 0.002 seconds.

Austerity's Dead, So Why Do We Still Have To Fight Chained CPI?

Deficit projections have already decreased by $200 billion for this year alone, so why do Republicans keep lunging for ever-more radical spending cuts like they were corn dogs at a barbecue? That's more in deficit reduction than President Obama's proposed cut to Social Security would "save" in 10. So why hasn't he withdrawn the proposal?

It would make more sense to dial back on the sequester, which is the biggest driver of these revised deficit figures, and work on the fundamental weaknesses in our economy that are prolonging the recession. In the long run this approach would do more to reduce deficits, too.

Instead of cutting Social Security, they should be strengthening the country's social safety net. A good start would be the passage of Sen. Tom Harkin's bill to increase Social Security's benefits. (If I were you I'd contact our senators and representative and demand that they support it. I already have, by signing this petition.)

The Mother of All Crises
You wouldn't know it from listening to most politicians, but there's a crisis going on. In fact, there are a few of them going on -- including the crisis of un- and under-employment, the crisis of wage stagnation, and the crisis caused by lost social mobility.

Each of these unaddressed problems feed into the Mother of All Economic Crises, the one that our mothers and fathers are facing and we'll all confront ourselves someday: the retirement crisis. Sen. Tom Harkin has a bill that starts to address that crisis, in a bill that should be passed immediately.

Harkin's bill would increase the typical Social Security benefit by roughly $800 per year. Since most seniors depend on Social Security as their primary source of income, most of that money would be spent immediately. That means the Harkin bill will also have a modest but genuine stimulus effect. And by providing added protection for lower-income retirees, which would protect more seniors from falling into poverty while increasing the stimulus effect.

And it's all paid for. Harkin's bill would pay for this benefit increase and ensure Social Security's solvency by removing the tax cap which currently exempts income above a certain level (currently about $110,000) from taxation.

Continue reading »



A Pledge for Mr. Waxman

Rep. Henry Waxman should make a promise to his constituents, but he doesn't want to. So, instead of promising that he'll protect Social Security from President Obama's proposed benefit cut, Waxman told one of his constituents the very idea of asking representatives to make "pledges" is wrong.

This notion that "pledges are bad" a new Washington cliché in this, the age of anti-democratic (with a small "d") and anti-Democratic (with a big "D") budget deals. There's just one little problem: Representatives begin their terms by taking a pledge. It's called the "Oath of Office," and in it each member of Congress promises to "support and defend the Constitution of the United States against all enemies, foreign and domestic."

The Oath of Office pledge is clearly acceptable, which raises the question: Which pledges are not?

A "pledge" is defined as "a solemn binding promise to do, give, or refrain from doing something." That sounds like a good thing, doesn't it? Of course, neither Rep. Waxman nor the president, who shares his aversion for the word, oppose pledges on principle. They've simply imbibed the conventional wisdom that members of Congress should be free to negotiate anything without being bound by commitments made beforehand.

That may even be a reasonable principle... in reasonable times. But where Washington is concerned, these are not reasonable times. Extremist Republicans are hell-bent on dismantling government and tearing up the social contract that has kept us prosperous for generations. Their counterparts in the Democratic Party are frequently too conflict-averse, too sympathetic to this corporatist agenda -- or both -- to fight.

Rather than make a clear and inarguable statement of principle, these Democrats have "pledged not to pledge." This has already led to several very bad outcomes:First, the president and many other leading Democrats have adopted the rhetoric of discredited austerity economics, which usually masquerades under the catch-all phrase "Simpson Bowles," leaving the public's wishes and interests unarticulated in our national debate. At best, they've muddied the differences between themselves and their opponents.

Secondly, the president and his fellow Democrats have agreed to a series of reckless budget-cutting measures instead of fighting for jobs and protecting the social contract. This has deepened and lengthened the lingering recession (or "Long Depression") which continues to devastate millions of American households.

And third, Democrats have set themselves up for repeated political losses by diluting their traditional pro-jobs, pro-growth, pro-Social Security and pro-Medicare agenda with mixed messages and disastrous deals. The president's waffling over Social Security and Medicare, for example, led directly to the GOP's "Seniors Bill of Rights" campaign in 2010 -- which helped Republicans retake the House and inflict a disastrous loss on Democrats that year.Democrats clearly haven't learned their lesson. When pressed by constituent Kim Kaufman to sign the "Grayson-Takano" letter pledging to reject Social Security and Medicare benefit cuts, Waxmansaid: "I can see possibilities that some things that we don't like may be in a final budget and that will get us a lot of things we do want."

The biggest "thing we don't like" on the table right now is Obama's Social Security cut, which is also a middle-class tax hike. The chained-CPI will permanently punish the country's already under-protected elderly and disabled citizens. The "things we want" are likely to be slightly less draconian cuts to other social service programs, or some "genteel" tax hikes which target everybody but the wealthy - perhaps the loss of health, child care, or mortgage interest deductions.

Continue reading »



Post: GOP Embracing Obama's Offer to Cut Social Security

So I guess this is the part where people explain to me that the Republicans are only pretending to support cutting Social Security, and it's all eleventy dimensional chess and nothing to worry about. But see, I just don't believe that, and I think the Obama administration will use his budget as the basis of a September sequester deal. (You know, the same sequester he practically begged them to impose, so he would have cover for cutting our safety net?)

Call your Congress creatures. Congressional switchboard: 800-998-0180

President Obama’s offer to trim Social Security benefits has perplexed and angered Democrats, but GOP leaders are embracing the proposal and rushing to jump-start a debate that will delve even more deeply into the touchy topic of federal spending on the elderly.

This week, two House subcommittees plan to hold hearings on “reforms to protect and preserve” programs for retirees, starting with Obama’s proposal to apply a less generous measure of inflation to annual increases in Social Security benefits.

Also on the table are higher Medicare premiums and reduced benefits for better-off seniors, and a higher Medicare eligibility age.

At the same time, House Speaker John A. Boehner (R-Ohio) said he has moved to tamp down criticism of Obama’s proposal, which quickly bubbled up from GOP lawmakers in swing districts, such as Rep. Chris Collins (N.Y.), who accused the president of cutting spending “on the backs of our seniors.” And Rep. Greg Walden (Ore.), the chairman of the House Republican campaign arm, called Obama’s plan “a shocking attack on seniors.”

The developments signal an important shift in the budget battle as party leaders nervously prepare again to raise the federal debt limit. After more than two years of talking about taxes and “wasteful” government spending, policymakers appear ready to move into the more serious and sensitive realm of entitlement programs.

Continue reading »



Bipartisan-Ship Of Fools

**The subject of this video is the kind of thing DC bipartisanship gets you

There is no word in the English language that allows the sun to poke through the clouds, inspires cherubic song and makes lobbyists high five while lording over a beer-joint urinal on in official Washington than "bipartisan". Bipartisan is just so darn cool. It's hip! It's now! It's Rand Paul's talking filibuster and Charlie Krauthammer's sardonic wit and Justice John Robert's dreamy blue eyes all rolled up into one big pig in a blanket!

Or, and I'm just thinking aloud here, perhaps when that word is uttered in Washington there is only once choice to be made: Run.

Because you see, there is actually bipartisanship that makes sense. It is all over the US. It will tell you that over 90 percent of the American public thinks there should be a 3-minute background checks before you purchase a combat weapon that can dismember kindergarten-aged kids, that the minimum wage should surpass that of Heilongjiang Province and that marriage equality is a concept long overdue.

But that is not the bipartisanship that exists in Washington. This brand of bipartisanship is based on Beltway "wisdom" and the status of who happens to be presenting the case. It's the variety that just gave us the 10-year anniversary of the tragedy in Iraq and rewarded Condoleezza Rice of the "smoking gun", "mushroom cloud" and "what does 'Bin Laden determined to attack in US' mean" with a new role as a political analyst on CBS - as if she can figure out day in and day out how to tie her shoes.

That's bipartisanship DC style. It ignored Columbine, Virginia Tech, Aurora, Trayvon Martin and finally got around to thinking we have a gun problem after grotesque inaction reached its logical conclusion, with 20 six and seven year olds mowed down like cattle in their classroom. Even so, while there is much support for gun safety measures, there is still some "bipartisan" opposition.

This kind of Washington bipartisanship looks at this war-of-choice that's now estimated to have cost in the trillions (yes, that's with a T), out-of-control health care costs via a crony-capitalism protection racket and a Pentagon so bloated with fat it's a surprise Rush Limbaugh doesn't eat it with a side of his happy pills for dinner, and concludes (behind the leadership of our very own ostensibly Democratic President) "let's rob the old moochers of their earned benefits!"

Continue reading »



Untangling the Chained CPI Hairball

True confession: When I first started writing this post, I was willing to give the president and his advisors the benefit of the doubt. As I dug deeper and listened more carefully, I realized Ezra Klein's carefully crafted justifications for cutting Social Security made absolutely no sense politically or policy-wise.

On a policy level, chained CPI is terrible, awful, Pete Peterson policy and shame on David Axelrod for spouting those policy ideas on Rachel Maddow's show and shame on the president if he's actually buying that bill of goods.

  1. It makes almost no dent in the deficit or debt now or in the future.
  2. It takes from those who can least afford it.
  3. It relies on the false premise that Social Security is somehow compromised or bankrupt, neither of which are true.

Chained CPI also has an impact on tax preferences and Medicare benefit payment schedules to providers, so it is ostensibly a way to slow the growth of tax preference items and Medicare costs. While it's important to contain those costs, chained CPI is the gnat straining at an elephant. There is no unbendable law that says chained CPI can't be used for tax preferences without linking Social Security benefits.

All of that leaves this Obama supporter confused about what possible reason he could have for including this in the White House budget proposal, particularly when he campaigned on protecting Social Security and Medicare.

According to Politico the purpose of the offer was to resolve the budget battles and move on to other pressing agenda items, like immigration and guns and pre-K for all. If that's the case, then someone should have clued this unnamed "Obama aide" in:

“We’re not going to have the White House forever, folks. If he doesn’t do this, Paul Ryan is going to do it for us in a few years,” said a longtime Obama aide, referring to the 2012 Republican vice presidential candidate who proposed a sweeping overhaul of Medicare that would replace some benefits with vouchers.

Continue reading »



Obama Offers To Cut Social Security; GOPers Offer To Let Him


Come on, you saw this coming! The campaign ads write themselves....

White House switchboard: 202-456-1414.
White House comments line: 202-456-1111.
Numbers for the Senate are here.
Numbers for the House are here.

Robert Reich explains why offering to cut Social Security plays right into Republican hands, who will turn around and campaign against "the Democrats who want to cut your Social Security." Of course, he doesn't want to acknowledge the elephant in the room: that Obama wants those cuts so much, he may be willing to accept nothing in return to get it done:

John Boehner, Speaker of the House, revealed why it’s politically naive for the President to offer up cuts in Social Security in the hope of getting Republicans to close some tax loopholes for the rich. “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,” Boehner said in a statement released Friday.

House Majority Leader Eric Cantor agreed. He said on CNBC he didn’t understand “why we just don’t see the White House come forward and do the things that we agree on” such as cutting Social Security, without additional tax increases.

Get it? The Republican leadership is already salivating over the President’s proposed Social Security cut. They’ve been wanting to cut Social Security for years. But they won’t agree to close tax loopholes for the rich.

They’re already characterizing the President’s plan as a way to “save” Social Security — even though the cuts would undermine it — and they’re embracing it as an act of “bi-partisanship.”

“I’m encouraged by any steps that President Obama is taking to save and preserve Social Security,” cooed Texas Republican firebrand Ted Cruz. “I think it should be a bipartisan priority to strengthen Social Security and Medicare to preserve the benefits for existing seniors.”

Oh, please. Social Security hasn’t contributed to the budget deficit. And it’s solvent for the next two decades. (If we want to insure its solvency beyond that, the best fix is to lift the cap on income subject to Social Security taxes – now $113,700.)

And the day Ted Cruz agrees to raise taxes on the wealthy or even close a tax loophole will be when Texas freezes over.

The President is scheduled to dine with a dozen Senate Republicans Wednesday night. Among those attending will be John Boozman of Arkansas, who has already praised Obama for “starting to throw things on the table,” like the Social Security cuts. That’s exactly the problem. The President throws things on the table before the Republicans have even sat down for dinner.



New Budget: Yes, It Includes The Chained CPI. Call Now!

Here it is, the attack on our earned benefits. Please, keep calling. The White House switchboard is 202-456-1414. The comments line is 202-456-1111.

Numbers for the Senate are here.
Numbers for the House are here.

President Obama on Wednesday unveiled a $3.77 trillion spending plan that proposes modest new investments in infrastructure and education, major new taxes for the wealthy and significant reforms aimed at reducing the cost of Social Security and Medicare.

“Our economy is poised for progess, as long as Washington doesn’t get in the way,” Obama said in announcing his budget plan on the South Lawn of the White House. He said his budget represents “a fiscally responsible blueprint for middle-class jobs and growth.”

“We don’t view this budget as a starting point in the negotiations. This is an offer where the president came more than halfway toward the Republicans,” a senior administration official told reporters Tuesday, speaking on condition of anonymity to detail the forthcoming document.

“So this is our sticking point,” the official said. “And the question is: are Republicans going to be willing to come to us to do serious things to reduce our deficits” – including raising taxes on millionaires.

So far, senior Republicans have rejected the proposal, which would sharply increase both spending and deficits next year over current projections. While the nonpartisan Congressional Budget Office forecasts $3.6 trillion in outlays in the fiscal year that begins in October, Obama calls for $170 billion more.

And while the CBO forecasts a deficit of $616 billion in 2014, Obama calls for a larger gap between spending and revenues of $744 billion, administration officials said, or 4.4 percent of the nation’s gross domestic product.

The budget gap would narrow over the coming decade, shrinking to 1.7 percent of GDP by 2023, when the national debt would also be shrinking as a measure of the overall economy.

But Obama proposes to lop only about $600 billion off projected borrowing over the next decade — trillions of dollars less than the austere, balanced-budget package that House Republicans endorsed earlier this year. While Obama proposes $1.8 trillion in new savings and tax revenue over the next decade, much of the money would be dedicated to replacing the sequester, $1.2 trillion in automatic spending cuts that went into effect March 1.

Obama’s deficit-reduction plan mirrors the offer he made in December to House Speaker John A. Boehner (R-Ohio) in negotiations over the so-called fiscal cliff. At the time, Obama called for $1.2 trillion in new taxes. The fiscal cliff deal included roughly $600 billion in new revenues over the next decade, with the bulk of the money coming from higher rates on households earning more than $450,000 a year.

[...] As he has in the past, Obama proposes to slice $400 billion from federal health programs, primarily Medicare, with the bulk of the cuts falling on drug companies and other providers. But Medicare beneficiaries would also take a hit, through higher premiums for couples making more than $170,000 a year and inducements for low-income recipients to use more generic drugs.

And for the first time, Obama formally proposes to slow the growth in Social Security benefits by applying a less-generous measure of inflation to programs throughout the federal government. The change would trim cost-of-living increases by roughly 0.3 percent a year, saving the government about $130 billion over the next decade.

White House officials said the new inflation measure — known as the chained consumer price index, or chained CPI — would not apply to programs for the poor, such as Supplemental Security Income, or SSI, and would be adjusted to reduce the impact on people 77 or older.

The deficit-reduction plan mirrors an offer Obama made in December to House Speaker John A. Boehner (R-Ohio) in negotiations over the so-called fiscal cliff. At the time, Obama called for $1.2 trillion in new taxes, but the fiscal cliff deal included roughly $600 billion in new revenues over the next decade, with the bulk of the money coming from higher rates on households earning more than $450,000 a year.

Obama’s decision to include chained CPI in his budget proposal has infuriated many Democrats, and a number of liberal lawmakers protested the Social Security cuts Tuesday at the White House. Republicans, meanwhile, who have pressed the president to put the change on the table, have so far dismissed the offer as too “modest” to justify GOP support for higher taxes.



10 Reasons Why Uncle Sam Needs More Tax Revenue

kleinbard_historicals.jpg

The Obama administration on Friday lifted the covers on its compromise budget proposal for fiscal year 2014. While Obama's blueprint would slash the national debt by a projected $1.8 trillion over the next decade (bringing the total reductions since 2011 to $4.3 trillion) through painful changes to Social Security and Medicare, Republicans are predictably balking at Obama's call for $580 billion in new tax revenue. Despite the administration's up-front concessions on spending, GOP leaders including John Boehner, Mitch McConnell and Eric Cantor continue to repeat their talking points that "the President got his tax hikes in January" and "the discussion about revenue is over."

But as a quick glance at U.S. budgets past and future shows, the discussion over tax revenue should be far from over. For starters, thanks to two wars, the new unfunded Medicare prescription drug program and the government responses to the 2008 financial meltdown, federal spending surged over the previous decade even as tax revenue as a percentage of the U.S. economy hit 60 year lows. And looking ahead, the U.S. Treasury will need to raise revenues higher than the historical average not just to fill the massive hole left by the Naughts, but to fund $2 trillion more in war-related spending, to address the aging of the U.S. population and to meet the public's demands for more, not less, spending across almost every area of government.

Here are 10 reasons why Uncle Sam needs more tax revenue. (Click a link to jump to the details for each.)

Continue reading »



Get Adobe Flash player

DOWNLOADS: (123)
Download WMV Download Quicktime
PLAYS: (1394)
Play WMV Play Quicktime
Embed

On "This Week," Greta Van Susteren failed miserably in her attempt to explain Republicans' ideological refusal to raise taxes.

VAN SUSTEREN: The reason we have paralysis is because we don't have the money. And I think people want to take care of people. I don't think people want to take the safety net away from people who really need it. Because Americans are really good, decent people.

If we didn't have a revenue fight in terms of how much money we have, the condition of the economy, the condition of the national debt, we wouldn't be having half of these fights. And the two parties might be able to come together a little bit better if we fundamentally got this economy up and roaring, we'd be fighting a little bit --

Where does one even begin to unpack this mess?

Let's start with her claim that "people" don't want to "take the safety net away" with the fact that Republicans have signed on to a budget which slashes the safety net to give tax cuts to rich people, authored by an Ayn Rand disciple who once complained that the nation's "takers" outnumbered our "makers" and famously derided Social Security as a "hammock."

Oh, and by the way, the new chairman of the Heritage Foundation just went on Van Susteren's network and basically called 70 million Americans welfare queens.

So to argue Republicans don't want to get rid of the safety net is to literally argue that up is down.

But the oddest thing about Van Susteren's Palin-esque word salad is the first sentence:

The reason we have paralysis is because we don't have the money.

The government's "money" (or revenue) comes from taxes, which are currently at historic lows and which the GOP absolutely refuses to raise.

So Van Susteren is saying, in effect: Republicans are refusing to raise taxes because tax revenue is so low.

What?

To be fair, shilling for an unpopular party that wants to slash benefits for poor people to give billionaires lower taxes is never easy these days. But Van Susteren really made a mess of it this morning.



Your Budget Represents Your Values

Jim Wallis repeats the words of Martin Luther King Jr.: "A budget is a moral document."

In the first three years of the Clinton White House, there were two memorable budget wars, in 1993 and 1995. The open fights with the Republicans were brutal, highest-of-high stakes white-knuckle showdowns where Clinton’s entire Presidency was on the line. Behind the scenes, though, our internal fights inside the White House were almost as intense. One thing I will never forget was a meeting where my old friend Bob Boorstin, one of the earliest staffers to join Clinton’s campaign, was fighting to keep some important line items in place that would help the poor, and bluntly told President Clinton, “Your budget represents your values.”

While those of us fighting for more spending to help low- and middle-income people lost a few rounds in these internal debates, we won more than we lost, and in both 1993 and 1995 the budgets Clinton presented and the ones he ended up negotiating with Congress were quite progressive. The 1993 budget raised taxes on the wealthy, lowered taxes on the poor through a big expansion of the Earned Income Tax Credit, and increased investment in programs like education, the environment, Head Start, and Student Grants and Loans. In the 1995 budget showdown with the Republicans in Congress, Clinton rejected the advice of people like Mark Penn that he avoid a showdown, and decided to draw a line in the sand to save “Medicare, Medicaid, Education, and the Environment” from cuts Gingrich wanted to impose, and he decisively won that battle. In all of the budgets that Clinton proposed and negotiated with Congress while President, he (for the most part) embraced Democratic values.

Twenty years after Clinton’s first epic budget battle, our current Democratic president is wrestling with what budget to propose to Congress. The House and the Senate have already proposed radically different ideas of what a budget should look like, so obviously what Obama proposes is just one part of a much longer budget debate, but symbolically, as a presentation of his values, it remains a very important moment. The president has been spending the last year and a half talking about how he wants to fight for the middle class, and his budget should reflect those values.

This is why it is so deeply troubling, as the Wall Street Journal and other news outlets are now reporting, that Obama is strongly considering putting a Social Security cut into his budget document. By doing this, the President can no longer fall back on what he has been telling progressives and Democrats in Congress, that he doesn’t want to cut Social Security but is willing to trade it for some good things that the Republicans would give up in a budget deal. By embracing- embracing! Social Security cuts as part of his budget, his statement of values, the President is telling the American public, senior citizens, and progressives that he wants to cut what they overwhelmingly and passionately support.

Continue reading »