Tag Archives: Social Security

As One Budget Battle Ends, Another Begins …from -Joan Entmacher and Judy Waxman, National Women’s Law Center


Thank you for all you have done to help protect women and their families. We are counting on you in the struggles to come to fight these efforts to destroy programs that millions of Americans need every day.

from …

Joan Entmacher

Vice President, Family Economic Security

National Women’s Law Center

Judy Waxman

Vice President for Health and Reproductive Rights

National Women’s Law Center

As you’ve probably heard, Congress has approved and the President signed a spending bill for the remainder of the federal government’s current fiscal year. And thanks to your support, we were able to safeguard (and even increase) funding for some vital programs.

Under this plan, which funds programs through the end of September, the budget for Head Start will increase, allowing 60,000 low-income children to continue receiving a valuable jumpstart to their education. Plus, we put the brakes on the effort to take away funding for Planned Parenthood and other critical family planning services across the country. If anti-choice politicians had prevailed, many women would have had nowhere to turn for contraception and preventive health screenings.

Unfortunately, however, these actions came at a high price: the 2011 budget agreement forbids the District of Columbia from using its own local tax dollars to give low-income women access to abortion services they need, putting an already vulnerable population at increased risk. And the agreement includes cuts to health, education and human services programs that will be detrimental to women and their families.

But the fight we had over this year’s budget is dwarfed by what we’re facing farther down the road. The House Republican majority just voted today for a budget for 2012 and beyond that would give more tax breaks to millionaires and corporations while eviscerating Medicaid, Medicare and other programs vital to women.

In supporting Representative Paul Ryan’s budget proposal, the House voted to:Cut, then cap, Medicaid, which would cause millions of vulnerable women to lose their health coverage. End Medicare as we know it, replacing the current guaranteed insurance system with a voucher program that would stick seniors with higher health care costs.

Cut taxes for the wealthy and corporations, permanently extending the Bush-era tax cuts, capping the top personal income tax, extending the December 2010 reduction in the estate tax for multi-million dollar estates, and lowering corporations’ tax rate from 35 percent to 25 percent.

Put Social Security cuts on a fast-track in Congress, placing millions of women and others who rely on Social Security benefits at risk.

Other provisions in the bill would slash funding for domestic programs such as child care, Head Start, K-12 education, Pell grants, family planning and other women’s health services, job training, housing and energy assistance, and services for the elderly.

The list goes on, but here’s the bottom line: this budget would unravel the fragile safety net for millions of Americans even as it puts TRILLIONS of dollars in the pockets of corporations and the wealthy. This isn’t a fiscal plan — it’s an attack on the very idea that our society should protect its most vulnerable members and on public structures that give ALL Americans a chance at a better life.

Thank you for all you have done to help protect women and their families. We are counting on you in the struggles to come to fight these efforts to destroy programs that millions of Americans need every day.

Sincerely,

Joan Entmacher

Vice President, Family Economic Security

National Women’s Law Center

Judy Waxman

Vice President for Health and Reproductive Rights

National Women’s Law Center

We need a budget that works for all of us …


You may have seen in the news recently how GE¹—like many other multinational corporations—is getting away with paying zero taxes, even though it raked in $26 billion in record profits.

Unbelievable, right? Well it’s only going to get worse—if we don’t stop it.

http://afl.salsalabs.com/dia/track.jsp?v=2&c=yHzrr33xgU1Ywr6ssSyVENJtMUMH5SJ%2B&url=http%3A%2F%2Faction.afscme.org%2Fc%2F51%2Fp%2Fdia%2Faction%2Fpublic%2F%3Faction_KEY%3D1882%26amp%3Btag%3DAdvE_201104_BackToFuture_blast-32792%26amp%3Btrack%3DAdvE_201104_BackToFuture_blast-32792%26amp%3Butm_source%3Dblast-32792%26amp%3Butm_medium%3Demail%26amp%3Butm_campaign%3D BackToFuture

This week, House leadership released a budget that is an extreme version of old policies to hand more tax breaks to millionaires and corporations—while putting all the sacrifice on the backs of working people. This back to the future budget would radically undermine the economic security of America’s middle class.

According to the Economic Policy Institute, “House Budget Committee Chairman Paul Ryan’s fiscal year 2012 budget resolution would undermine the modern social safety net, reversing the gains America has made in health and economic opportunity. This resolution would deny millions of middle-and low-income households access to the American Dream.”

Please click here to tell your representative NO to going back to the future. It’s time to move forward with a budget that works for everyone.

http://afl.salsalabs.com/dia/track.jsp?v=2&c=yHzrr33xgU1Ywr6ssSyVENJtMUMH5SJ%2B&url=http%3A%2F%2Faction.afscme.org%2Fc%2F51%2Fp%2Fdia%2Faction%2Fpublic%2F%3Faction_KEY%3D1882%26amp%3Btag%3DAdvE_201104_BackToFuture_blast-32792%26amp%3Btrack%3DAdvE_201104_BackToFuture_blast-32792%26amp%3Butm_source%3Dblast-32792%26amp%3Butm_medium%3Demail%26amp%3Butm_campaign%3D BackToFuture

Many vital public services and programs are targeted for near destruction by Ryan:

The budget would end the guaranteed benefits of Medicare that seniors and the disabled depend on. Medicare would be replaced with a voucher that would be paid to insurance companies. The plan is designed to shift more costs onto seniors while giving insurance companies more control.

The budget would slash support for seniors and the disabled in nursing homes by cutting Medicaid by nearly $800 billion over ten years.

This budget even lays out a plan for making future cuts to Social Security.

These leaders in Congress are so committed to protecting tax breaks for their corporate donors, that they are about to shut down the federal government rather than compromise. Instead, they are demanding a budget that would destroy public services, jobs, K-12 schools, public safety and more.

Enough. Please take a moment to send a message to your member of Congress now. Click here. http://afl.salsalabs.com/dia/track.jsp?v=2&c=zFp8q5VhdL9DKRZe1iPYHtJtMUMH5SJ%2B&url=http%3A%2F%2Faction.afscme.org%2Fc%2F51%2Fp%2Fdia%2Faction%2Fpublic%2F%3Faction_KEY%3D1882%26amp%3Btag%3DAdvE_201104_BackToFuture_blast-32792%26amp%3Btrack%3DAdvE_201104_BackToFuture_blast-32792%26amp%3Butm_source%3Dblast-32792%26amp%3Butm_medium%3Demail%26amp%3Butm_campaign%3D BackToFuture

Thanks for all you do, 

Chuck Loveless

Legislative Director

AFSCME

Rep. Chris Van Hollen …CRITICAL FEC DEADLINE: Fight the Radical Republican Agenda


It’s a sham.

House Republicans think they can impose their right-wing agenda — privatizing Social Security and ending Medicare as we know it — under the pretext of deficit reduction.

And here’s the scary part: if we don’t stop them, that’s exactly what they’ll do.

The DCCC is up with ads calling Republicans out on their real agenda, but with only 3 days until the FEC deadline hits, they are still more than $200,000 short of hitting their Million Dollar grassroots goal.

Contribute $3 or more right now and my fellow House Democrats and I will match every dollar you give with $2 of our own, tripling your impact.

http://www.dccc.org/page/m/1d63cb4c/1b9dd8ab/57a3a5e6/4e0d1563/1704337409/VEsE/

Republicans are not serious about deficits. If they were, then why give huge tax breaks to the Big Oil companies and the wealthiest Americans that will add a trillion dollars to the deficit?

I’ve seen their budget plans. Here’s what they are really serious about:

**Stopping Planned Parenthood from offering cancer screening and family planning services.

**Repealing Health Insurance Reform

**Ending Medicare as we know it and imposing the cost of rising health care on senior citizens. Under their scheme, seniors would lose their current Medicare guarantees and be left to the whims of the insurance industry.

We can’t stand by and let House Republicans launch this risky experiment with our seniors’ health care.

Contribute $3 or more right now and my fellow House Democrats and I will match every dollar you give with $2 of our own, tripling your impact.

http://www.dccc.org/page/m/1d63cb4c/1b9dd8ab/57a3a5e6/4e0d1563/1704337409/VEsE/

As a former DCCC Chairman and current Ranking Member of the Budget Committee, let me tell you from experience: the numbers that each party reports after these FEC deadlines can make all the difference. The media, pundits, and Members of Congress here on Capitol Hill will be watching to see which side has the momentum. We can’t fall short now — Contribute today.

Thank you,

Rep. Chris Van Hollen

P.S. The first FEC quarterly deadline of the year is just 3 days from now. We must exceed our $1 million grassroots goal to show Republicans, their special interest backers, and pundits that we are united, strong, and determined to fight back against the right-wing Republican agenda. Contribute now.

Can you call Senator Cantwell?


Please call Senator Cantwell and tell her…  “Don’t vote for a budget that makes cuts to education, health care, and Social Security, and puts corporations and millionaires above hardworking Americans.”

I never wanted a handout.

I just wanted to get my nursing degree and build the life I’ve dreamed of. I wanted to provide my daughter with the opportunities that my mother couldn’t give me when I was growing up.

That’s my dream, but I’m afraid my dream is about to die.

Republicans are trying to cut the financial aid I rely on to pay my tuition. Last year, as a student, I couldn’t find steady work and earned less than $4,500. If my financial aid is taken away from me, I won’t be able to afford to get my nursing degree.

Once again I’m going to have to choose between paying rent or buying diapers, between having heat or having enough food for my family to eat. Can you imagine the pain involved in making those choices?

Can you help save my dream? The Senate is on recess, and Senator Maria Cantwell is home in Washington. Can you call her in her district office in Everett, and ask her to vote against any budget that makes cuts to education, health care, and Social Security, and puts corporations and millionaires above hardworking Americans like me?

Here’s where to call:

Senator Maria Cantwell

Everett office: 425-303-0114

I recently got a part-time job at Walmart and with that money, along with my student aid, I’m now able to cover all my expenses. I even had enough money to get new glasses for the first time in six years. I’ve struggled to get this far, but I finally feel like I’m going to be able to make a good life for myself and my daughter.

Please, don’t let the Republicans take all this away from me. You see, the cuts they want to make aren’t abstract. And they aren’t limited to student aid, either. They’re trying to cut job training, food aid to women and children, and more. Congress doesn’t seem to understand the consequences to people like me all across the country if these programs are cut.

Can you call Senator Maria Cantwell, and ask her to vote against any budget that makes cuts to education, health care, and Social Security, and puts corporations and millionaires above hardworking Americans like me?

Senator Maria Cantwell

Everett office: 425-303-0114

Thank you.

–Katryna Wade, Arkansas

5 Social Security Myths That Have to Go …By Eric Schurenberg


Social Security isn’t the only cause of America’s fiscal problems, but it is Exhibit A in why it is so hard to fix them. No serious solution to our debt can ignore a program that will tax and spend about 4.8% of GDP this year and account for about 20% of all federal spending-and that within a few decades will count almost a third of the population as beneficiaries. But whenever I write about Social Security here at CBS MoneyWatch, I’m always struck by how much disagreement there is about how the system really works.

A handful of misconceptions tend to crop up repeatedly-often having to do with that fiscal fun-house mirror, the Social Security trust fund. And despite the efforts of writers like Allan Sloan and experts like the Urban Institute’s Eugene Steuerle, the myths won’t die. This column won’t kill them either, but that doesn’t mean we shouldn’t take a whack. Here goes:

Myth: Social Security didn’t create the deficit and shouldn’t be cut to fix it

This is a much loved progressive slogan. “Blaming Social Security for the deficit is like blaming Iraq for 9/11,” writes Dave Johnson of OurFuture.org in one of the cleverer examples of the genre.

Technically, the first part of the myth is true-or rather, used to be true. From 1983 until last year, Social Security revenues actually lowered the Treasury’s need to borrow in the public markets, as excess payroll taxes collected under Social Security’s flag helped fund other government programs.

The surplus years are over, however. The Social Security trustees’ report estimates that last year payroll taxes fell short of the sums paid out to beneficiaries. Small surpluses will return for a few years; then the red ink will return for good in 2015. To make up the annual shortfall, Social Security will have to draw on revenues from the general budget. In other words, from here on out, year after year, Social Security only makes the deficit larger.

Myth: Social Security benefits are earned; reducing them amounts to confiscation

It’s not hard to see why this illusion exists, since Social Security’s own website refers to “earned credits” and sometimes refers to payroll taxes as contributions. But despite Social Security’s fetish for language that echoes private pensions, no one ever vests in Social Security. You don’t own your benefits until you cash the check.

It’s more accurate to say your benefits are an entitlement granted by act of Congress and subject to change at any time by another act of Congress. As long as voters consider benefits inviolate, they will be. When voters decide fiscal responsibility is more important, then Social Security benefits- “earned” or not-will be up for review.

Myth: Social Security is funded until 2037

The Social Security trust fund–the ledger on which Uncle Sam records the surplus taxes that the program has accumulated over the years–is large enough that the program need not ask for extra money to pay benefits until 2037, the year that the trust fund “runs dry” if nothing changes. But that’s not the same as being funded-at least not in a way that has any economic meaning.

As you may know, the trust fund is, for accounting purposes, assumed to be invested in IOUs from the U.S. Treasury. When Social Security needs money beyond what it expects to collect in payroll taxes, it can redeem some of these IOUs. But it’s not as if the trust fund is a giant 401(k). It’s more like access to a rich but cash-strapped daddy’s credit card.

What that means is that Social Security can get what it needs from Treasury without having to ask permission from Congress. But when it redeems one of these IOUs, the Treasury (just like Daddy) has to come up with the money the old-fashioned way, by raising taxes or, more likely, borrowing more.

Dolly Madison at Daily Kos seems to think that Social Security’s need for cash can be met from the interest credited to the trust fund-that is, with more IOUs. Allan Sloan disagrees:

You know, of course, why this wouldn’t work — at least, I hope you know. It’s because the U.S. government ultimately has to pay its bills with cash, not with its own IOUs. In the long run, you need cash — real money — not funny money.

“Fully funded” suggests that the money to maintain today’s benefits until 2035 is already locked up. It isn’t. Redeeming IOUs from the trust fund (and the income imputed to those IOUs) will only put another burden on taxpayers who are simultaneously paying for Medicare, interest on the debt, and all the other purposes of government. At some point, the total burden will be too much.

Myth: The trust fund is invested in Treasury bonds, the most secure investments in the world. To suggest that the trust fund wouldn’t pay is blatant fear mongering.

The trust fund’s IOUs are entered on the Treasuries books as non-trading “special issue” bonds, paying interest at a rate equal to an average of outstanding Treasuries. And yes, the Treasury will undoubtedly pay if Social Security asks.

But that’s not the issue. The issue is whether taxpayers think it’s so important to maintain Social Security benefits that they will gladly absorb the burden of paying off those bonds on the current schedule. Remember, Congress (that is, you know, taxpayers) can cut benefits-and thus postpone the need for Social Security to redeem any bonds–just by passing a law.

In other words, the myth misses the point. Whether Social Security continues to pay benefits at today’s rates isn’t a question of credit quality. It’s a question of politics and priorities.

Myth: Social Security is an easy fix

Any policy wonk worth his or her spreadsheet can quickly come up with ways to bring Social Security into long-term actuarial balance. You can conjure up solutions yourself using the Committee for a Responsible Federal Budget’s calculator. You’ll find it’s not that hard to wipe out the system’s long-term deficit.

The only problem is, most such solutions regard Social Security as a closed system. They assume that the trust fund is an ATM that gushes cash whenever the trustees demand, and that workers will never balk at stepping up to higher payroll taxes.

Which brings us to what may be the most destructive myth of all: The idea that Social Security is, fiscally speaking, an end in itself. In the real world that Social Security actually operates in, the government and its citizens all have other obligations. As Steuerle puts it:

Social Security as a budget issue revolves not simply around its internal accounting balances and trust funds, but rather how much of the economy it occupies and how much of future growth it absorbs.

The discussion we need to have, then, isn’t simply whether we can pull the levers to bring Social Security into balance. That is easy. Instead, we need to ask a larger, tougher question: In light of all we owe-to our creditors, our children and our future-how much do we want to spend supporting everyone who happens to live past 62? We want to spend something, to be sure, and maybe a lot. But myths and slogans shouldn’t persuade us that we can avoid the question. We can’t.

[A version of this post previously appeared on The Fiscal Times]

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