Submitted by Lawrence Rafferty-Guest Blogger
It is probably just me, but it seems that every time we hear about a proposed deal to extend the debt limit and avert a government shutdown and a debt default, the plan does nothing more than cut the taxes on the wealthiest Americans and Corporations. The latest proposal by the so-called Gang of Six is just one more example of Congress attacking the Middle Class.
“The cuts in the Gang of Six plan aren’t minor, either. It proposes a chained CPI adjustment to Social Security, which may not be a bad idea when combined with other measures to boost benefits and strengthen the program, but on its own is tantamount to a $1,300 cut each year for recipients over their lifetimes. Strengthen Social Security co-chair and former Obama adviser Nancy Altman has denounced the idea as an overly harsh cut. “The chained-CPI is poor policy, and given that seniors vote in disproportionately high numbers, it is equally poor politics,” she said.” Think Progress This latest attempt by both sides of Congress to claim victory over the imaginary debt crisis just seems to be another attempt to please their corporate masters.
Does it bother anyone else that a group of Senators from both sides of the aisle would call themselves the “Gang of Six”? These Senators are doing their best to terrorize the Middle Class so maybe the moniker is appropriate. While some of the details of this proposed plan have not been agreed upon, what we do know troubles someone like myself who may be utilizing Medicare and Social Security in the next few years. “These tentative changes include repealing the Alternative Minimum Tax and establishing three simple tax brackets for individuals, while cutting “tax expenditures” and adjusting the corporate tax rate to between 23 percent and 29 percent.” Business Insider How can a tax rate be lowered for major corporations who pay no taxes now?
The proposed cuts to Social Security retirees is especially disturbing. “Lawmakers and the Obama administration are reportedly considering switching to a “chained” Consumer Price Index. According to the advocacy group Strengthen Social Security, the chained-CPI could lead to annual Social Security benefit cuts of $560 for those aged 75, $984 for those aged 85 and $1,392 for those aged 95. “The proposal to shift to the chained-CPI is actually a stealth attack on Social Security,” said Joan Entmacher, director of family economic security at the National Women’s Law Center, during a Friday conference call with reporters.” Huffington Post Is anyone surprised that the Congressional terrorists would be considering reducing payments to Seniors and reducing corporate tax rates? Just why is Social Security being discussed when it has no impact on the Deficit?
I have a novel, Gang of America idea to suggest that would actually reduce the deficit and protect Social Security. Actually, it is not my idea, but the idea of the vast majority of Americans who are repeatedly telling Congress to tax the wealthy and Corporations and to leave Social Security alone. I realize my Gang does not have much lobbying power, but we have millions of votes. Congress, it is time to get on board with the Gang of America’s ideas and you just might save the economy and your jobs. Let’s hear your ideas to “fix” the imaginary debt crisis.
Respectfully submitted by Lawrence Rafferty-Guest Blogger
HenMan,
This one’s for you:
Mike Spindell, you do realize that all those payroll taxes you paid all those years while working kinda went to the SS benefits you started drawing out upon retirement. You know you can do the same thing with private disability insurance and an annuity with a much better raet of return. Or are you that much of a financial jellyfish that you needed the government to force you to save for your own retirement?
Mike S.-
I heartily agree with your comment. I know from first hand experience that the best cure for the Ayn Rand delusion is growing up and seeing the real world around you. All men are NOT created equal. Some need a little help and some need a lifetime of help. When one person is helped, everyone benefits. When a poor kid goes to college on a scholarship, we are all better off than having him in the street dealing drugs, or in prison, or dead. Who benefits when someone is trampled into the dust? I say no one. The Republicans and the “God-Fearing Teapartiers” say, “You’re on your own, Mack”. Basically, “Republican” is just another word for “Cheapskate”.
IMHO two large systemic factors are at play:
1.) The “checks and balances” system of government makes it extremely
difficult to enact meaningful reform. The necessity to horse trade to
get legislation passed and the ability to put riders onto the bill further
dilutes or defeats progress. For my example of “progress”, I would
point to living in a country where the #1 cause of bankruptcy is not
medical debt.
2.) Money. Too much greasing too many wheels. The combination of easy
injection of unlimited money and the system of government has shifted
the federal government from a democratic one to what is clearly a
corporate oligarchy.
It would be nice if Obama grew a pair, but that is presupposing he is really on the side of Main Street.
kderosa-
That $11,000 you contribute to Social Security every year would indicate an income around $180,000 a year. I hope you’re giving a good chunk of that to your Mom for living in her basement and using her computer.
@HenMan, you are forgeting the employer’s part of your income which get’s sent in. Also I pay self employment tax anyway.
Swarthmore Mom,
The lock box was broken up for good, long ago. A lot would have been different if the Supremes had not broken the law in 2000.
Where’s Al Gore’s lock box?
Well said HenMan! It isn’t a poker game when you want the result that you are agreeing to.
kderosa-
You contrbute $11,000 a year to Social Security? You need a new tax advisor. The maximum annual contribution for 2009 and 2010 was $6621.60. The maximum annual contribution this year is $4485.60.
The reason for the reduction this year is that the world’s worst poker player, Barack Obama, once again got snookered by the Republicans. Instead of taking the 2% withholding reduction out of the Federal Withholding Tax, the Republicans conned him into taking it out of the Social Security contribution, thus setting a terrible precedent and opening the door to future raids on the Social Security System.
Mike S.,
Well said. This so-called deal hurts those that need the help the most.
Elaine,
Thanks for the links! I just hope the sane can prevent this “grand bargain”.
“People never planned for or retired before social security?”
Erykah,
What planet are you living on? Most people in this country’s history lived from paycheck to paycheck. There was no extra money available to plan for retirement. I was forced to retire at age 60 because of severe health reasons, had it not been for SS Disability, I would have been in poor shape.
Seven years later SS represent a sizable part of my income. By the way I worked more years than you’ve probably lived and most of the time with two jobs and my wife working also. People with your political bent helped to rob the SS Trust Fund and even so SS is stable until 2037. It is obvious though that you don’t care a whit for the effect this will have on people, because you’ve got yours and damn the rest.
That should be taken into account the next time you comment on social justice for “your” people. As much as you pretend to care for your brethren, you turn a deaf ear to the economic realities they face, due to the racism of this country. In your beliefs you seem to be someone who got hers and damn everyone else, as long as your interests are not affected.
Frank: Stop your lying ways
There will always be popular support for taxing other people to pay for stuff you are getting. And when poll questions are revised to ask if people would like their taxes raised to pay for their stuff, popular support mysteriously vanishes. Why do you suppose that might be?
Kdreadful – you don’t read much do you? Even the majority of teabaggers support raising taxes according to any reputable poll taken.
But then silly things like facts never get in your way do they.
Kderosa, I think popular support leans toward raising taxes on the wealthy and no cutting of Social Security and Medicare.
@Swarthmore mom, which suggests there is quite a bit o fpopular support for cutting spending and not raising taxes. Don’t you like democracy?
http://tpmdc.talkingpointsmemo.com/2011/07/democrats-set-drop-dead-date-for-debt-ceiling-backup-plan.php?ref=fpa
The tea party is committed to making drastic cuts with no revenue increases. If only they had not been elected last fall……
@AY, What you have is a pretty IOU and a note to raid your grandchild’s future to pay off the “debt” for your retirement. Good luck trying to collect. You have no propoerty right to that money. And, politicians can raise the eligibiity age and/or decrease benefit amounts whenever they want. That’s quite the system you’ve got there.
You do know when social security was started the retirement age was higher than the median age of death for workers. Perhaps we should go back to that system.