I. Sanders Says Tax The Rich At Yesterday’s Social Security Summit.
The Social Security fight has taken a new turn. Senator Sanders is demanding that the rich and corporations pay their fair share in taxes, both to close the small gap for Social Security and to address the government’s need for revenue. Yesterday, at the Social Security Summit in Washington, D.C., Senator Sanders led the coalition opposed to the chained cpi and other safety net cuts, and demanded that politicians oppose President Obama’s budget cuts to Social Security. His summit statement pdf is here.
In what appeared to be a Scrap The Cap push forward, Sanders did not mention starting the FICA cap scrap at 250K of income, but instead appeared to be calling for the FICA cap to be done away with altogether. This is a smack down for Obama who promised no tax increases for the middle class and a reversal of Sanders earlier support for a FICA cap change which only kicked in above 250K in wages.
The new turn appears to be the call for the rich and for corporations to pay their fair share of FICA and of income taxes. At this point, FICA taxes are not collected (capped) when a person’s income exceeds 113K. Scrapping the Cap would solve Social Security’s funding problems forever.
II. Fix The Debt blames Old People Again. This time it is for High Youth Unemployment.
Fix The Debt, an organization devoted to tax cuts for corporations and to cuts to social program spending, released a call yesterday for cuts to social spending and blamed government spending for the high unemployment among young people. This was just a new twist to pour gasoline on the fire of generational tensions between young and old.
If Fix The Debt, who are rich as Midas, were serious about helping unemployed youth, they would call for a Universal Jobs Program, created by government and purposed to do all of the jobs we ask government to do. The Works Progress Administration created millions of jobs under President Roosevelt’s direction during the Great Depression. We could do this again. But Fix The Debt would rather screw the youth than employ them.
III. The Cutters Hate Young People As Much As They Hate Old People.
If Fix The Debt, Bowles-Simpson, Peter Peterson have their way, young people stand to lose Social Security benefits under the current proposals to raise the retirement age, to reduce benefits through indexing, and through the cpi. The CBPP chart below shows how little youth would receive when they retire at 2050: