Don’t Raid Social Security To Pay Down The Federal Debt

There is no time to waste.  At this very moment, pressure is the highest it has been to solve the country’s debt crisis by tackling our entitlement programs… and making some very unpopular, very unfair spending decision under the guise of “fiscal responsibility.”

The National Committee to Preserve Social Security and Medicare has fought hard –and won—against recent legislative proposals for entitlement commissions.  We strongly believe in “regular order” that keeps accountability for critical spending decisions on the shoulders of the legislative body –not a handful of appointees.

But with a commission created by Executive Order firmly in place, we urgently need everyone in the battle – to protect future benefits,which will also allow seniors to have enough money to eat.

And we’re in for a very tough battle, because … the call for entitlement spending cuts is now louder than ever, fueled by the highest federal debt in our nation’s history.  But here’s the fact that keeps getting pushed under the rug:  President Bush’s tax breaks for the wealthy—not Social Security and Medicare – jumpstarted the historic deficits that have since mushroomed in the wake of federal bailouts and economic recovery efforts.

And that is why one of our National Committee’s top priorities at the moment is to remind our fiscal commission leaders that retired Americans know the real score and will fight for what’s right.  While some say and think  there is not enough caring about preserving Social Security for future beneficiaries… that’s just not true.  After all, who would preserving these programs be for?

The National committee is the watchdog on guard to protect benefits for today’s retirees – your Social Security COLA, for example… but, millions of grassroots members and supporters also know how critically important Social Security and Medicare will be for our children and grandchildren.  Keeping this in mind, many Baby Boomers are approaching retirement with Social Security as their major –if not only –source of income.

For this reason amid others, that’s why many have rallied together to defeat harmful plans—including Social Security privatization –that threaten future benefits. 

The fiscal commission can not think for even one moment that retired Americans don’t care if they continue to raid the Social Security and Medicare “piggy bank” to pay down the federal debt!  If we don’t make ourselves heard and often throughout this process, there is no telling how deeply Social Security and Medicare might be impacted.

The President’s 18-member commission is tasked with slashing the current deficit down to 3 percent of the gross domestic product (GDP) over the next five years.  Today it is more than triple that size, at 10.6%. That’s a lot of slashing left to do.

And while the National Committee supports this effort to return fiscal sanity to Washington, cutting Social Security is not the answer.  Social Security is not to blame.  Social Security is not to blame for the nation’s fiscal problems.  Indeed, its Trust Fund surplus has been used for years to help hide the true size of federal deficits!  Meanwhile, the fiscal commission’s recommendations for Social Security and Medicare spending are in development and due before Congress by December.

At this time of unprecedented federal debt, difficult decisions must and will be made.  And with growing numbers of Americans relying on these programs just to afford basic needs, it is up to every one of us to make sure that cutting Social Security and Medicare isn’t one of them.  Therefore, we don’t want a raid on Social Security to pay down the Federal Debt!!

Senior Citizens: No COLA?

Food, housing and Medicare costs are going up—our Senior Citizens may not get a Social Security Cost –of- Living Adjustment (COLA.)  For the first time since 1975, low inflation from the economic recession is projected to eliminate the entire COLA for all Seniors through 2011. Time is running out for Congress to ensure seniors get at least a minimal COLA in January.

Already, millions of retirees have lost every penny of their Social Security COLA and more to pay for Medicare-out-of-pocket cost alone.  And with no COLA, at all, can they afford to “ride out” this economy?

Automatic COLAs were started in 1975 to prevent this from happening—to protect the buying power of Social Security beneficiaries.  It is up to this Congress –this year—to uphold that promise! Congress needs to know that seniors need a COLA to help them keep food on their plates and keep pace with rising out-of-pocket health care costs.  Even before it was passed, the Medicare Modernization Act of 2003, was fought—with its enormous subsidies to private insurers –that is still driving-up the out-of-pocket Medicare costs and reducing the value of Seniors Social Security checks today.

We need to help our Seniors by demanding relief from rising prescription drug and health care costs.  Legislation has been endorsed to help raise the Social Security COLA and relieve pressure on seniors’ pocketbooks by establishing a new and more accurate Consumer Price Index (CPI) for Elderly Consumers.  This bill would establish a new CPI reflecting basic costs for individuals 62 years and older—including escalating health care cost – to be used in calculating the annual Social Security COLA.

Similar legislation needs to be passed immediately because Medicare out-of-pocket costs have grown to consume not only 100% of the COLA for millions, but an average of nearly 40% of the entire Social Security benefit check to Seniors.  Imagine the impact if Congress allows the COLA to drop to zero next year for our Seniors’.  This is a battle we must wage for every struggling senior to make ends meet in this economy.  We must convince lawmakers that an immediate legislative priority must be ensuring seniors get a fair COLA next year, and, every year.  It is my opinion, that seniors are already taking a double-whammy from plummeting home values and 401(k) investments on one side… and soaring health care and living costs on the other.  As a result, if Congress does not take action this year? This Zero% COLA will start January 01, 2010.

Rest assured, we can make an impact for our loved ones and the aged: Take time to to write members of congress and push legislation that:

• provides at least a minimal COLA in 2010 to help with procurement of food and health care costs; and
• tackles soaring Medicare out-of-pocket costs that continue to erode the value of the Senor Social Security benefit check.

Vulnerable Seniors: Social Security “Notch Baby” Reform

Americans born from 1917 through 1926 receive Social Security  benefits that are lower than those for persons born before or after this period with the same earnings record.  This long-standing injustice has shortchanged Social Security beneficiaries known as “Notch Babies” since 1977.  The term “Notch Baby” refers to the disparity in Social Security benefits currently being paid to people born between those years.  Done mistakenly, this has caused serious harm to the benefits of those notch babies. The standard of living and /or financial condition could change for many with the increase in money owed to them i.e. be able to buy more food to eat properly and eat more healthfully.

Legislation has recently been introduced in the U.S. Senate and House that, if passed, will result in a settlement payment of a Social Security benefit check in the amount of $5,000 to these “Notch Babies.”  It is my opinion that, passage of this critical Social Security reform legislation is long overdue.  The bills are titled The Notch Fairness Acts of 2009 and were introduced into the Senate by US Senator David Vitter of Louisiana and into the House by US Representative Ralph Hall of Texas.  This legislation will finally correct this injustice, but as we know, congressional passage is not guaranteed—not by a long shot.

I would urge you to ask your Senators and your Representative to co-sponsor( S.81 and H.R.1067) “The Notch Fairness Act.”  This would be a giant- step- forward for our American Senior Citizens.  It seems that many members of Congress do not understand this Notch Baby issue and the unfair burden it places on our most vulnerable Seniors.  Please do what you can to assist in correcting the Notch Baby disparity by writing to Congress, helping the elderly, and giving every other Social Security beneficiary fair and equal treatment we all deserve.

Thank you for taking the time to read.

Don’t Use Social Security and Medicare to pay down the deficit

Today’s retirees are relying more and more on Social Security and Medicare as our 401(k) balances have diminished, housing values have plummeted, and food, health care, and energy costs have soared.

We are in a debt crisis created not by Social Security and Medicare, but by spending on “other” priorities: tax cuts for mostly wealthy Americans…seemingly endless federal bailouts—an economy in recession--  And now, with mounting public concern over the projected $1.8 TRILLION current year deficit, federal spending on Social Security and Medicare is being questioned like never before.

Some days it seems like a growing number are joining fiscal conservatives in labeling Social Security and Medicare as economic threats that should be slashed to reduce the federal deficit.  Barely a day goes by when someone in the media buys into this false claim to some degree.  And at a time when proposals are on the table for dangerous entitlement spending cuts and “reforms”—who will congress be listening to? 

Social Security and Medicare—our largest and most successful entitlement programs—did not cause the economic problems we face; however, Social Security and Medicare do need Congress’ priority attention, but not as part of a deficit reduction plan.  As critical lifelines for tens of millions of America’s retirees, these programs must not be “lumped” together and subjected to spending cuts to achieve arbitrary budget goals.  Social Security’s long-term health relies on a plan that will close-up its long-term gap, not weaken its finances! 

And Medicare, with skyrocketing costs driven by privatization and health care inflation, must be strengthened as part of national health care reform – not crippled by spending cuts that hurt beneficiaries!  Even still, these facts are falling by the wayside as powerful forces in Washington continue to advance an agenda to unravel our entitlement programs.  Fiscal conservatives in Washington are making it increasingly clear:  They want to put a large bull’s eye on Social Security and Medicare.

Indeed, this politically influential group of economists, conservative think tanks, and deficit hawks applaud any proposal that includes entitlement cuts.  This group said the debt crisis is “an opportunity” to make the case for entitlement cuts.  And these proponents of entitlement spending cuts have put big money behind their high-profile campaigns.  We cannot begin to match their financial strength, but neither can we afford to retreat from a battle so critical to the well-being of those approaching and those of retired Americans.

Let’s be reminded about Peter G. Peterson, who has poured $1 BILLION into a foundation to “educate” Americans that the government can no longer afford Social Security and Medicare.  This is an absolute myth.  Other organizations have also followed suit, including the Concord Coalition (founded by none other than Peter G. Peterson) and the Urban Institute—both using the debt crisis as justification to cut entitlements.  These dangerous ideas are being fought and staving off harmful proposals—since they began gaining momentum under the Bush Administration.  And now, against the backdrop of a $1.8 TRILLION current year deficit that is strangling federal spending, we have to fight harder than ever.  This is the one proven way to ensure Social Security and Medicare are protected from proposals that would undermine future benefits. 

Opponents of this fight, continue their efforts through the media to convince the public—and, of course, the White House and Capitol Hill –that Social Security and Medicare are unsustainable.  Social Security and Medicare did not cause the deficit crisis and must not be sacrificed to solve it; rather, these programs need to be addressed individually and strengthened to meet the future needs of those nearing retirement and of retirees today, and in generations to come!