Mike Stark caught up with Democratic Majority Whip James Clyburn and asked him where he stood with regard to the Deficit Commission and potential plans to cut Social Security benefits.
Clyburn said he met with the commission yesterday, had confidence in its composition and had worked with Nancy Pelosi to choose the Democratic members from the House.
Mike asked him if he thought Social Security benefits would ultimately be cut. Clyburn replied “I don’t think it will be cut, I think there will be modifications, I think there will be adjustments.” But he also told Mike that he supports means testing, and that is explicitly a benefit cut:
CLYBURN To be fair — and I may get beaten up by some people on this, and that’s all right, I get beaten up a lot. But I think to be fair, you cannot possibly not modify a program that at the time of its enactment, we had 17 people working for every one person that was a retiree. Today, you have about three people working for every one person that is a retiree. Now that is unsustainable.
Now what we got to do is really get real about how we make that kind of adjustment. People are living longer, at the turn of the last century the life expectancy in this country was less than fifty years, at the turn of this century life expectancy got over 70 years.
When I was a little boy, my dad was 55 years old, I thought he was an old man. Come July 21 if all goes well, I’m going to be 70 years old. I’m not thinking about retiring. And so most 70 year olds I know are not thinking about retiring any more. And so all of that needs to be taken into consideration going forward.
STARK: Is means testing the fairest way?
CLYBURN: I think that’s one way we ought to be…we ought to be discussing means testing. I think that those of us who operate at the income level that I operate at ought to be means tested.
Clyburn is repeating George Bush’s debunked claim about “17 workers for every retiree” — there were a million people working for every retiree when Social Security was first implemented. The ratio declined quickly, and it’s been it’s been roughly 3:1 since the early 1970s. The actual dependency ratio (workers to nonworkers) reached its peak in 1965 and has declined ever since. Clyburn also echoes George Bush’s arguments about the population living longer. Because health care has improved more children do live longer. But life expectancy for those who reach age 65 has gone up relatively little since 1983 when the retirement age increase was enacted, so there is no reason to raise it now.
And while it’s great that Clyburn and the people he sees every day as a member of congress feel no desire to retire at a spry age 70, he can’t assume that those who spend their lifetimes enduring hard manual labor share those sentiments.
However, if the Treasury is indeed going to default on its bonds (as PIMCO’s Scott Mather is now predicting), it’s unclear why Clyburn thinks senior citizens who have paid into the Social Security trust fund should have to bear the burden of it (rather than, say, China).
As Dean Baker and Mark Weisbrot note in their book Social Security: The Phony Crisis, means testing puts a disproportionate tax burden on the elderly:
Some policy analysts and advocates have argued for “means testing” on the grounds that the government should not pay money to wealthy senior citizens while it cuts programs for poor chidren.
There are compelling reasons, however, to reject this approach. Most important is the danger that it poses to the program’s broad base of political support. One reason it has been so difficult to cut, privatize, or dismantle Social Security is that 43 million beneficiaries receive it. The more that base is reduced, especially by cutting off those seniors who have relatively more of a voice in politics the shakier Social Security’s position becomes.
It is not just the absolute numbers that are significant but the nature of the program as well. Social Security is a social insurance program in which retirement benefits are proportaional to one’s payments into the system. Means-testing would convert the system into a welfare program. And we know from the recent cancellation of the most important federal welfare entitlement, AFDC, how much more difficult it is to defend welfare against political attacks than it is to defend social insurance.
The justification for denying benefits to people who have paid taexs into the system is also questionable. We do not deny interest payments to the wealthy owners of U.S. Treasury bonds, for example, and it is difficult to se how the payment of Social Security benefits to rich senior citizens is any less appropriate. Indeed, why single out senior citizens as a group for special treatment in this regard? If we think that the rich are getting too much of the economic pie, then they should all be getting taxed more — not just the ones who happen to be over 65.
Is Clyburn saying that he agrees with PIMCO, and that the Treasury intends to default on those bonds? That would be news.
James Clyburn is a senior member of the Democratic leadership in the House. He has been meeting with the Debt Commission. He’s close to the White House, and he very much knows what everyone is planning and discussing. The fact that he is on board with Social Security benefit cuts (no matter what he wants to call it) should be of concern to everyone who cares about the future of the program.
Note: this post was edited slightly from its original version to clarify the points about retiree-to-worker ratio and life expectancy.




87 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL Action
Yeah, means testing — or to use Pete Peterson’s focus group tested term, “affluence testing” – is a big threat because it sounds progressive. It would, in fact, drain Social Security of political support by turning it into a welfare program, making larger cuts possible.
And because there aren’t many rich elderly people, it wouldn’t score much money — it’s main impact would be political, not fiscal.
Maybe it is time for means testing for Congress. Don’t let anyone get elected who’s personal wealth is over 1/2 million.
check the fucking cloakroom for pods – who in bloody hell knew Strauss’s most reliable, effective foot soldier’s would have a D after their names ??
none. let me repeat that, none of the other major prog sites are discussing this. am lucky to have some pretty wonky on policy FB friends – and even with their increasing cynicism, none of them think ‘anything’ will happen to SS/Medicare – whatev
thank you Jane and thank dog for FDL
This is rank BS. Like everyone else I paid increased SS rates starting in 1983. If benefits are cut, I want that money back, with interest. And I want it to come from the rich who got huge tax cuts, which were hidden by the massive increase in SS accounts.
And to make this perfectly clear, lots of people don’t want to work their whole lives, and die a few weeks after quitting, or work until they get some horrible disease. I know plenty of people who scrimped and saved so they wouldn’t have to die working. Clyburn is lost in the DC bubble. He should go home and talk to his constituents and see how many want to work until they are 70, assuming they even have a job.
I’m told you’d have to take it down to people making $80,000 a year in order for it to have any significant impact. Which would be an all-out attack on the middle class.
It’s purely a political step.
Here’s a clue, Mr. Clyburn: if you’re so worried about the worker/retiree ratio, why don’t you start doing something useful, like preventing all our good-paying jobs from being off-shored? Or maybe encouraging your little buddy Obama to use the Sherman Anti-Trust Act so we don’t have more of these non-productive mergers that put thousands of people out of work? Just sayin’, you sellout.
No means testing. People have been paying one hell of a lot of money their whole lives for this retirement account. Nobody’s getting anything for free here.
Increase taxes on the top income brackets.
I once thought that as well – HCR forced me to rethink.. it’s not like it will ‘look, walk, or quack’ like cuts, it sure as hell wont be reported as such. we’ll hear a lot about said ‘means’ and deficit reduction – and the ever expanding veal pen, high on the pragmatism of it all, will be holding forth on ‘the greater good’
and I’ll be in Mexico, hoping for a decent broadband connection
Now the Democrats are doing the dirty work of dismantling the last vestiges of the New Deal. Pathetic!
Thank you.
I did not understand that.
It’s just that so many people completely depend on SS and I don’t think they will take a cut quietly. Grannies get really upset sometimes. :)
Thanks against to Mike Stark.
I thought the End Social Security Commission was closed door and private.
Exactly!
Why is nobody talking about rolling back Bush’s and Reagan’s huge tax cuts for the rich? The revenue lost from these cuts was later partially replaced by tax rises on other classes, but the tax cuts on the rich were never repealed.
I know. and please don’t think I was lecturing you. like so many here, am angry, frustrated, and feeling a tad helpless to stop the pluocratic hits that just keep coming.
I believe in means testing as a solution, but on the revenue side. It’s called removing the cap on payroll taxes.
From what Clyburn is saying, it seems like the Rahm strategy is to go with defensive cuts like Clinton did with welfare reform. But we know that when the masters of the universe get half a loaf, they want the whole loaf next time around.
@13 Damn right. People on Social Security won’t take a cut. Even the ones with rich 401(k) plans; they’re the ones who are going to be means tested out. The rest will be treated like they are on welfare.
Sounds like another guy who needs to hear from us! Call him up and point out that undoing Bush’s and Reagan’s tax cuts for the rich would bring in a lot more money than making grannies and grandpas eat cat food:
*
COLUMBIA
1225 Lady Street, Suite 200
Columbia, SC 29201
Phone: (803)799-1100
Fax: (803)799-9060
*
FLORENCE
Business & Technology Center
181 East Evans St., 314
Florence, SC 29506
Phone: (843)662-1212
Fax: (843)662-8474
*
SANTEE
176 Brooks Blvd.
Santee, SC 29142
Phone: (803)854-4700
Fax: (803)854-4900
*
NORTH CHARLESTON
Berkeley, Charleston, Dorchester Council of Governments Bldg.
1362 McMillan Ave, Suite 100
N. Charleston, SC 29405
Phone: (843)529-2708
*
WASHINGTON
2135 Rayburn House Office Building
Washington, 20515
Phone: (202)225-3315
Fax: (202)225-2313
*
Contact Field Offices Toll Free at 1-888-JIM-0006 (1-888-546-0006)
They’ll get around that by grandfathering it out. The people who currently have SS won’t lose anything, but future generations will. And this is all so the multinational corporations can make even more money.
Could someone tell me why it is considered possible (politically) to cut SS now?
Is it because our democratic president and his followers would support it and make it bipartisan?
Didn’t think that at all. I am thinking of all the old people I have known who had only SS and how they manage is unknowable.
I am old and not totally dependent on SS but I just shudder to think of the pain this could cause.
Translation: We’ll be trying to make cuts.
“Catfood. It’s what’s for dinner. Bum Bum Bum.”
(Sincere apologies to the late Aaron Copland for bastardizing the already bastardized.)
Clyburn’s affluence testing will subject Social Security to all the Randian rhetoric about ‘achievers v looters’ and will quickly drain it of political support where it is most needed: among people who vote, write to their Congresscritter, and are politically active in AARP and their communities. Old people, in other words, for whom Social Security is pocket change.
Has anyone ever measured the actual impact of means-testing benefits to remove the millionaires from the pay-rolls of Social Security? How much impact would that have on our federal deficit versus, say, ending our foreign adventure in Iraq six months earlier than projected?
Yeah, I thought not.
Assume everything they say is spin to benefit their own class and
hurt everyone else.
Even Clyburn has crossed over.
They are all out to destroy us.
Just want to make sure I’ve got this straight:
1. Middle class people pay into Social Security trust fund for retirement insurance
2. Treasury borrows money from trust fund, issues bonds in exchange
3. George Bush gives tax cuts to the rich that deplete Treasury
4. Treasury defaults on bonds issued to trust fund
5. Trust fund defaults on retirement insurance payments to middle class people
6. Efficient transfer of wealth from middle class to wealthy
I suppose I could add “Treasury defaults on bonds issued to social security trust fund to reassure Chinese that bonds issued by Treasury to them will hold their value.”
Do I have that right?
in the short time I have been paying close attention, Clyburn is Leadership’s proxy – or should I say velociraptor, he’s the one always testing the fences
Now there’s some real tapdancing.
“Pay no attention to those bonds behind the mirror…”
When social security was first implemented there were “17 workers for every retiree.” When Social Security was first implemented one farmer fed about seventeen people. Now one farmer feeds over one hundred, yet no one starves. The reason is increased productivity, brought about through the collective efforts of the previous generations. Vastly improved infrastructure, better educated and higher skilled workforce, etc. The problem w/ Social Security is the way it’s funded. Funding it solely out of payroll taxes rather than requiring the all wealth-producing activity to contribute impoverishes the program from the outset. Social Security should be funded out of profits. Remove the wage cap and require all incomes contribute to Social Security without limit, regardless of origin, including capital gains.
Jane, have you read Peter Orszag’s plan to cut social security, which he wrote with someone from Brookings?
He doesn’t propose means testing, rather straight up benefit cuts, the more severe the younger you are.
http://www.brookings.edu/views/papers/orszag/200504security.pdf
Clyburn is silly to talk about not retiring. He has a cushy job where he does no more than walk from one place to another. How about the guy who is in the building trade and just can’t do the work any more at 70? Just keep going until you drop I guess. Clyburn should keep his mouth shut. He’s inviting problems for himself.
I sense sino-phobia here. Let’s not lash out. This of America’s own making.
So what are the chances the catfood commission will propose eliminating the income cap on SS withholding?
And while we’re at it, when do I get my pony?
The point is that Social Security replaces a portion of your income up to the cap. Raising the cap is another way of turning Social Security into a benefit instead of a standard form of insurance like any other.
Remove the cap on FICA; means test the upper 10%. All these arguments about turning Social Security into a welfare program etc. are incomprehensible to me. It should be about economic security for the retired. If you are economically secure, as the upper 10% are, then you shouldn’t be on it.
If the catfood commission had any intention of raising the cap on FICA, you already would have heard of it by now.
No Orwellian language, please.
George Bush incentivized hard working dead people by reducing the taxes on their estates
and hard working hedge fund managers by treating their earnings as capital gains.
“Means Testing” is how they screwed thousands of Vets of their benefits!
We can’t let them do this to SS which we have been paying into since your very first employment.
Don’t Touch My Social Security!!
And forcing the middle class to work longer is just like saying you are worthless and every thing you worked for to retire was for naught!!
Well stated. We have a Congress which represents special interests and is completely out of touch with middle America.
“It is not just the absolute numbers that are significant but the nature of the program as well. Social Security is a social insurance program in which retirement benefits are proportaional to one’s payments into the system. Means-testing would convert the system into a welfare program”
Wouldn’t lifting the fica cap, without increasing benefits to wage earners who now have increased fica liability, also convert SS into a welfare program?
Ditto
All of this is bullshit, when the truth of the matter is Social Security isn’t even in real trouble anyway. It’s supposedly (haha) got a huge surplus from which to draw AND it’s not even supposed to start dipping into that surplus for many years.
It’s the general revenues that are well short of the governments other general expenditures. And that is because of tax cuts to the rich and two wars.
ALL of which are off the table.
Mad enough yet? I just can’t believe the shit that’s happening since this complete fake BHO became President, and really can’t believe why the hell we aren’t saying ENOUGH yet.
“Come July 21 if all goes well, I’m going to be 70 years old. I’m not thinking about retiring. And so most 70 year olds I know are not thinking about retiring any more.”
Is this guy for real?
I have:
http://firedoglake.com/2009/02/12/obama-social-security-and-the-diamond-orszag-plan/
Ian Welsh wrote about it during the last go-round:
http://firedoglake.com/2009/02/20/social-security-the-diamond-orszag-plan-is-not-the-liberal-alternative/
It looks like they’re headed for some mixture of adjusting the COLA, raising the retirement age, reduction of benefits for younger workers (a la Orszag) — all of which they will say isn’t “cutting” benefits. The argument, or so says Brad DeLong, is that the money would start to run out anyway, so this just redistributes the payouts.
Then they will also probably try to tack on universal private accounts of some sort, which they will say doesn’t constitute privatization because they’re ad-ons, not a carve out. But when you’re cutting benefits at the same time, it absolutely is.
To top it all off, they are also going to apparently go for a deal on the VAT, which they will trade for Republican votes by reducing corporate taxes. But it appears leadership is actively working with the commission, and so they will have some certainty that whatever it reports, they can pass.
I think SS taxes are like a tithe- you give for the common good…if you don’t need it pass it on.
The rich have a lower rate of tax anyway and a plethora of deductions to whittle their taxable income down during their working years.
Raise taxes. The reverse of complaints about “welfare mentality” is the selfishness of taking what you don’t need; the psychology that says you should take all that’s coming to you works both ways. Rich people need $ to give to their Paris Hiltons?
What I find so repulsive is the these little catch phrases designed for the media to exploit and confuse people. They love telling us how we really don’t understand the bill, or it’s too complicated for people. But the media is tasked with muddying the waters till half the country says I guess it’s OK.
And another mission accomplished by the morally bankrupt!
“Means testing” Not everyone knows what that means.
Means testing my ass.
Hey, Jimbo, why don’t you cut the crap and tell people straight out
that you’re not going to honor the pact the government
made to all Americans since 1935.
Can anyone tell me what portion of our current 10-11 trillion??? debt comes from Social Security??? (Cause I’d bet the answer is 0, but admittedly am unsure.)
And if the answer is 0, why did they call this a “Debt Commission” when all they’re looking at is Social Security, the one thing the government is doing that isn’t adding to the debt currently???
Shouldn’t it have been called the “Reform Social Security Commission” or something?
Clyburn is as much a scumbag as Rahm. I should have voted Republican, because at least they tell me they are going to screw me, instead of WH lies.
It feels to me like I did vote Republican. I voted for Obama.
Its soooo monumentally important to get out in front of the mssging on this, and not get HCR’d. there is no desire to “fix” Social Security in 99% of the congressional districts in the country, but as with HCR, that wont matter if they are allowed ANY room to move. hold up HCR’s wild unpopularity as an example of what will happen if they are permitted to “fix” social securty in the same way
This is more than scandalous. This is criminal. WTF is going on with the Democratic party these days? They are sounding more and more like Republicans these days. Goldman Sachs, BofA, Citibank, Oil corporations get our tax dollars and grandma’s will eat cat food now. Where is the God Damn Change I voted for?
I particularly like the part where they pay no taxes yet get a huge tax refund.
Check your pockets, it’s the only change I’ve seen since voting for this asshole.
The Democrats are now screwing the poor, the middle class, and the elderly.
I am DONE with them. No money and no votes.
It is outrageous to expect anyone to work a manual job, or an average office job until 70 (or older). Both kinds are exhausting, and take their tolls on our bodies in their own ways. My office job is certainly not as comfortable as Mr. Clyburn’s :)
I can’t help but wonder if President Obama is intentionally trying to destroy the “former” Democratic party which once represented the average citizen in favor of a “neo-liberal” corporate Democratic Party. Since both parties are now representing corporate interests, unless citizens rebel and either “primary” a non-corporate candidate or move to a third party, the working and middle class will continue to erode.
Are those in Congress now so insulated in Washington D.C. and corrupted by constant lobbying that they are truly unable to relate to citizens?
At least we could stop paying their moving expenses….
“I can’t help but wonder if President Obama is intentionally trying to destroy the “former” Democratic party”
Clinton already did that. Obama only made it permanent. Wake up. Bolt the Party.
The catfood commission is holding sham town halls on June 26th. Please find the one nearest you and give them a piece of your mind!
http://www.americaspeaks.org/
I don’t get the Dems at all. Are they trying to make sure they don’t get re-elected in 2010/2012?????? Do they really think Dems/Independents/GOP are just going to sit back and let them fuck over SS without raising a stink????
I guess the Dems just aren’t that different from the GOP. If McCain were in office and his Deficit Comm was talking seriously about tinkering with SS, OMG, the citizenry, the Dem caucus would be raising holy hell like you’ve never seen. But because Obama is in office and it’s his Deficit Comm, nobody is saying a word. Really pitiful and sick. If the Dems in this country don’t start voting these shits out of office and making it clear there will not be more votes for Dems if they don’t shape-up, then things will never change.
As social security gets whittled away/disappeared, what are “current workers” supposed to live on when they retire [if they get to]?
Because for most of us, that 401(k) is now a 201(z), and any value we might have had in our house has disappeared down the dumpster as well.
People everywhere are hurting. I’ve got two college-graduate kids; neither can find a job. Nor can the similarly-situated kids of any of my friends. [Thus none of them will be adding to the "worker base" to support ss recipients like me.]
I’d really like to see some “Obama-villes,” like the “Hoovervilles” of the Depression. The individual stories of pain, unemployment, medical need, lack of housing need to be told, and featured daily in our rotten media.
That SOB showed his colors when he could not keep his world to Hillary. Now we turn Social Security into Welfare – stop thinking about it as an earned program paid for by specified taxes. It has been a goal of the right for years – Welfare is always easy to cut so as to get more tax cuts for the rich and corporate.
How you close a career will impact how you are remembered. Liberal star “Ron” Dellums really earned his progressive anti-war rep and only his fighting and then giving up to the pressure of Sam Nunn and the GOP’s push to put the Reagan gay ban into law soils his record – but rising star James Clyburn – 77th most liberal in House by some rankings – is on his way to a more than a bit of soil on his record. I should have known his true colors when he supported Gephart (private conversations with CEO’s that laughed about Gepharts fake union support was an early lesson – 1985 – in how two faced some folks are).
“I can’t help but wonder if President Obama is intentionally trying to destroy the “former” Democratic party ”
Obama faked being a progressive so as to beat Hillary in the primary. Now those that supported him are having a hard time dumping him without dumping the party.
SS gets included in debt because those SS Trust Fund Assets – gov bonds – get cashed in a few years and taxes on the rich that had tax cuts for the rich that were financed by gov borrowing must occur – or new debt issued to China.
And you know tax increases on the rich is not a “centrist” approach – better to screw the aged – and rip the social safety net apart.
I forgot – you are correct -
the debt does not change if we cash out the SS Trust Fund bonds with money raised via bonds sold to China. It is just that this is such a good opportunity to screw the aged. The 3rd highest ranking Dem in the House seems to think he needs more love from the rich.
Avoiding the power of the rich to cut welfare was the genius of the FDR (via my acquaintance SS Chief Actuary Myers)concept. It is SOCIAL insurance prepaid by a specified tax so you can’t just cut it – but with means testing/welfare mindset that will change quickly.
BINGO – spot on.
Give massive large benefits to the rich – because the taxes they will pay will be several times even more massive (the benefit calculation formula is progressive with only the tax “flat”). NO CAP and INCLUDE INVESTMENT INCOME (as is in the health reform act) and all problems go away.
Raise the cap – and the benefit – by using all income that is taxed in the calculation.
papau, I’m not sure I understand. Is it because means testing would “imply” to the rich and powerful the idea that cutting SS benefits is OK- because they have no capacity to see the real world outside their gated communities?
Raising the cap and tax all income is logical but I am tired of facilitating the greed and unnecessary “needs” of this misguided culture by increasing the benefits for people who need no benefit. Or just raise taxes on higher income levels for the general welfare of the nation.
…and stop fighting wars
And there seems to be some kind of stupidity leading Dems to attack unions and labor in general. Andrew Cuomo did it in announcing his running mate: praised the guy for having taken on municiple unions and he was going to be doing the same kind of thing.
What is going on with the Dem Party? Gone to Repubs every one….
It is the difference between an earned benefit and a welfare check.
We have laws that say your earned benefits – like your pension from your employer – can not be reduced by your employer after they have been earned, but
If your employer has you as charity that he gives to, he can reduce that income at any time.
A “means” test means you did not earn the benefit you thought you earned – part is being taken away and I – the US Gov – have the right to take it away – despite the taxes you paid over the years – because the benefit is just a charity that I can cut at anytime. Put a means test in and a basic protection – coming from our concept of the difference between earned benefit and welfare – of old age is destroyed – and with the destruction of that protection, all old age benefits paid for by payroll taxes become welfare and easily cut to finance the next tax cut for the rich (it will not be sold that way – first will come the tax cut for the rich followed by deficit worries followed by cuts to “welfare” – rinse, repeat).
Indeed it makes the aged into deadbeats – not living on a pension but a drag on the good life that those “productive rich” should be allowed to live lest they not have enough incentives. And as with current welfare with its 5 years and out to a job rules, we can expect new “work as best you can until you drop” rules for the aged.
And it all is so un-necessary given the solution of no cap on either benefits or wages (including investment income) that are included the tax and the benefit calculations.
There is such fear by the rich that they will be required to give back the Bush tax cut for the rich – rather disgusting. About 6 months ago there was floated the idea of additional bond sales to China so as to retire the SS Bonds over time – but the Club for Growth will not let go of this opportunity to kill the New Deal – they have the money to buy Congress – and this time they have a President “they can work with”. The “they can work with” line is the same that went through CEO conversations in the primary as to why they were so fiercely supporting Obama over Hillary despite the Defense/State professionals being much more comfortable with Hillary’s backbone and point of view. One thing my life outside the door of the boardroom taught me is that the CEO’s get what they want – and they want what they want for obvious reasons that they don’t always keep inside the boardroom. One of my CEO’s called me his “token liberal” – I guess I should have been honored. There are liberal CEOs – but in my finance companies I just never worked for one.
I recall once offering two company investment paths – the higher profit one had a higher tax rate so we killed it – the rich hate to have higher taxes and do not trust young actuary’s hopes of greater net after tax profits. CEO’s went from hired management to the one who got most of the reward once saved for the entrepreneurs that started/owned the company – and now need to run the country to keep that income level going without “losing too much to taxes” – and they decide what is too much.
end of rant – its late and I am rambling and the meds have kicked in – sorry if the above is not coherent.
quick answer
paying un-needed benefit to rich already in Current system – making it larger is small price to pay for the massive new tax on the rich that can lower the tax for the rest of us – or if we like – be seen as making the SS system solvent forever.
Rich white, rich black – no difference. I want to see numbers. Exactly HOW much money would we save by denying SS to those making $200k+ per year?? There are so few of them – the top 1% and all that… And is it an income test, or an asset test?
All this is, is a Trojan Horse. Tell Clyburn we know our Greek history. And keep your hands the FUCK off Social Security!
Yep, till those tax cuts are rolled back & one unjustified war i.e. iraq war is quickly and responsibly winded down our economy will not recover. period. In my opinion all the money gained with those unjustified and immoral tax cuts is being sent off-shore to spur economy in totalitarian country for a easier more profitable buck.
Anyway what is the logical reason preventing bringing back those taxes. Rich will be rich with incentive to earn still present. Our market economy structure meshes extremely well with progressive taxes. Progressive taxes is good for the economy and society. Regressive taxes are aimed by only those who want to create a totalitarian structure gradually. If President Thomas Jefferson was present today he would have railed against the gutting important institutions instead of doing logical fixes for trivial pursuit of leadership positions by our policy makers.
If they touch social security in any way there is no reason for me to think democratic party is there anymore. Social Security= Democratic party. Only reason democratic party can touch social security is because Republicans know that if they touch it they will lose by a landslide to Democratic party and so it is left to aspiring leaders from Democratic party to try to squeak in a change so that they can gut it entirely in a generation.
Social security is good for economy. Our seniors spend it in our local economy, even in this recession they are the ones supporting local market place in a reliable way and feel proud that in America they are taken care of by their fellow citizens after couple of decades of hard work and sacrifice unlike the fate suffered by their counter-parts in third world countries.
Exactly right. Remove all cap on the income and reinstate progressive taxes. Progressive taxes is the only and right solution with incentive to earn and rise higher in society still present in our market economy. If we go either extreme of no taxes or regressive taxes which the current panel in my opinion in its short-sighted greed is trying to put in place the economic system will simply crumble and disintegrate.
There is a reason for it to be called social security. We all as a society come together and say thanks to the individuals who have worked hard to maintain our inherited infrastructure and give them a truly golden, peaceful & joyous years irrespective of whether they achieved great successes or losses in life with the risks they took.
Health Care which I really followed from start to end showed me one thing. I think it starts as one thing getting everybody energized but at the end by the time it comes to conference & signing it is just simply a bill lobbyists have plotted all-along, Classic bait and switch stuff. After that I am seeing the same in the financial reform bill . So I think all classic reform bills go this route.
Social security path is different since it is extremely well working, well liked and cherished program. The panel composition itself as Sister Jane pointed out a while back is decked majority in favor of gutting the system. So they already have the answers even before they joined the panel and my belief is that the panels sole job and purpose is now how to frame questions such that a well running & well funded system looks to be in peril.
If they touch social security benefits in any way it will be the end of the democratic party. From the time I started to vote I associated democratic party with social security.
Only thing they can do if they want to improve the economy in a real way, increase jobs in a real way and still touch it is remove the cap and drop the social security rates both for employees and employers. That requires a real battle with entrenched lobbyists and people making money just by working on tax loop-holes.
Since that requires lot of heavy lifting best thing to do is to leave alone a well running and well funded institution and give executive branch some good ideas on how to end a unjustified war in iraq and make it happen soon.
Thank you. But the basic assumption is still reading reality accommodating a value system I cannot accept.
Social Security was once a handshake of trust in community- that trust is gone. Pulled kicking and screaming into the New Deal, the rich, bolstered by a camouflage of public shareholding, have been contriving to make the majority support them. The genetic drive of greed, evident throughout our culture, has been systematically ordained as the path to success through the misreading of individualism and capitalism. The idea of the common good has been extinguished because there is no common. At a point in history when we Americans could progressed to a more honest democray, we have been divided and conquered by the few among us who, defusing whatever commonsense the common may still have, point to convenient enemies to war against or, closer to home, something to buy. Sorry for my rant. I expect we agree on much
“The idea of the common good has been extinguished because there is no common.”
The point on which I believe you feel we disagree is actually one on which we agree. I believe you see means testing as a way to stop the rich from getting something they do not need – and if we actually had a rich cohort that as a hole felt tied to non-rich via the commons, I agree. But the reality is that the rich only follow “what is fair” as defined by them. Social Security gets around this attitude by making it a social insurance system that “we are all in”. Remove benefits and we are no longer all in the system – and that is not fair – it is welfare. The progressive benefit formula irks the rich – “I can buy an annuity for less” but it is accepted. Because of the progressive formula the rich will “overpay” for those large SS benefit checks – but those large checks mean we are all in the system – the common – and the result is vastly improved Social Security finances. The SS actuaries calculate no cap but with giving the rich benefits as a 2% tax revenue increase if tax on wages plus investment, or 1.75% increase if on wages alone. No benefit increase for the rich – a means test approach – is only a 0.2% saving. To get something equal to the removal of the cap you need to go down to to about 2 times poverty level – 30000 to 50000 – to start the means test.
Lets keep everyone in the system.
Thank you, padua, for taking the time to go backwards into old entries to help me understand. I think I understand the inclusive progressive SS math and rationale now, although it made more sense in my parents lifetimes when the gap wasn’t so wide and the graph of American family incomes wasn’t as wide a pyramid shape.
This is dangerous to say but: it isn’t that I resent the rich their Social Security; but I question the morality of people who feel excess is an entitlement and needful or not they deserve it. It is social security- not personal security. Anyway Americans seems to have lost the credibility to feel moral now anyway.
I agree with you. Although I have been a lifelong Democratic party member, I HAVE “bolted” the party. This new corporate, neo-liberal party does not represent my interests or the interests of most citizens.
Palli, Progress and Papau, thank you for well thought out comments. If you aren’t already, you both should write blogs, diaries, or letters to the editors in newspapers.
What happened to the Dem Party?
Obama, a true corporatist and the Citizen’s United decision.
So, they’re dropping all the pretense now and telling us to f__k off.
A few months before elections, they’ll be promising the moon and won’t honor anything. Many will get the boot, and we’ll get the same treatment from their replacements.
Ignore them all. Don’t participate in their sham. Leave them hung out to dry like they’ve hung us out.
If you “can’t help but wonder,” you haven’t been paying attention. This has been and continues to be Obama’s agenda since long before he declared himself to be a candidate for President.
The MSM will ignore them.
Clyburn – Another P.O.S. Democrat…..
Democrats suck and are good for nothing…..
So, I’m 55. Been working about 40 years now. I’ve paid into the system and dearly, for the last 25, (Thanks, Gipper!). There was supposed to be TRILLIONS of dollars sloshing around just waiting to be doled out to me when/if I was able to retire. But, because of the thievery of our government, year after year, the money is gone and now they can’t make good on the IOU’s they left behind. Therefore, the treasury notes being held by Soc. Sec. can be defaulted on but the ones held by Goldman/AIG/Citi/etc. are sacrosanct, at a 100 cents on the dollar, no less. Maybe hell won’t be such a bad place. It’s possible I can spend eternity beatin’ the shit out of each and every one of these miserable bastards. Believe me, they’ll all be there.