DeFazio, Senate Democrats offer plan to stabilize Social Security's finances

[Poll_Blind]

(image: Charles Pope/The Oregonian)
-->See the video in the DU video forum!<--

From OregonLive:

WASHINGTON -- Rep. Peter DeFazio and Senate Democrats offered a defense of Social Security on Wednesday along with a plan to ensure the touchstone program's long-term financial survival.

Social Security is "irreplaceable. It is the bedrock for 50 million Americans today and more in the future. We have to guarantee that we will continue this program as far as anyone can predict," DeFazio said, flanked by three senators.

"And this one simple step will actually do that."

That "step," which is spelled out in bills that DeFazio introduced in February and on Wednesday by eight Democratic senators, would require people earning more than $250,000 to pay Social Security taxes.

Much more at the link!

Hey, don't forget- the President and the Catfood Comission may have Social Security and Medicare cuts in their sights- but there are real Democrats out there who are still willing to fight to preserve and protect it!

Don't give up on these folks, they haven't given up on you!

PB

[ProSense]

1. Here's is the release from Senator Sanders

Strengthen Social Security

"Social Security is the most successful government program in our nation's history. For 76 years, through good times and bad, Social Security has paid out every benefit owed to every eligible American," Sen. Bernie Sanders on Wednesday told a Capitol press conference. He introduced legislation to keep the retirement program sound for another 75 years. "The most effective way to strengthen Social Security is to eliminate the cap on the payroll tax on income above $250,000. Right now, someone who earns $106,800 pays the same amount of money into Social Security as a billionaire. That makes no sense. The Keeping Our Social Security Promises Act will ensure the long-term solvency of Social Security without cutting benefits or raising taxes on the middle class."

Sanders's measure is cosponsored by Sens. Daniel Akaka, Patrick Leahy, Barbara Boxer, Claire McCaskill, Sheldon Whitehouse, Al Franken and Richard Blumenthal. Rep. Peter DeFazio introduced the companion bill in the House.

Under the proposed legislation, the wealthiest Americans would pay the same payroll tax already assessed on those with incomes up to $106,800 a year. Social Security officials have calculated that the simple change would keep the retirement program strong for another 75 years.

The legislation also follows through on a proposal that President Barack Obama made in 2008 when he was running for the White House.

Since it was signed into law 76 years ago, Social Security has kept millions of senior citizens, widows, widowers, orphans, and the disabled out of poverty. Before Social Security, about half of senior citizens lived in poverty. Today, less than 10 percent live in poverty and more than 53 million Americans receive retirement or disability benefits.

The most successful government program in our nation's history has not contributed one dime to the federal deficit. It has a $2.5 trillion surplus, and it can pay out every nickel owed to every eligible American for at least the next 25 years, according to the Social Security Administration. A recent report from the non-partisan Congressional Budget Office estimated that Social Security is in even better financial shape and can pay all promised benefits until 2038.

If McCaskill actually support this, there is no reason it shouldn't get 53 Democratic votes in the Senate.

[avaistheone1]

2. Thank you.

[movonne]

3. I am in DeFazio's district and just love him...he had a town meeting

here in our small town and standing room only...very red neck tea party type in my area but we have a large number of dems here as well...and thank God for Portland and Eugene...

[Bluenorthwest]

5. This is a large district

Just doing the townhalls could be exhausting. I looked at the map of the NY district that just had a special election, and it is like a postage stamp.

[jannyk]

9. Me Too. He's one Dem I'll support to the end.

[Bluenorthwest]

4. This is an idea I have supported for years. Obama campaigned

on the idea of raising the cap, although like most of his campaign rhetoric, he never mentioned it once elected.

[Poll_Blind]

7. It's funny you should mention that- the articles about it today also mentioned that....

...once he was elected, the rhetoric turned into another famous Obama No-Show.

The thought that Obama will probably fight against the very Progressive rhetoric which he used to get elected is a highly depressing thought, BTW. It's not like we haven't seen the exact same thing happen Re: Medical Marijuana.

PB

[in_cog_ni_to]

6. If Defazio and Sanders support it, I know it's good and fair

:thumbsup:

[Hell Hath No Fury]

8. Two politicians I actually trust --

More power to them! What they are attempting is righteous. :applause:

[exboyfil]

10. Why the gap between $107K to $250K?

Those folks should pay on that income as well. It is only fair. I would go with paying at a reduced rate to reflect they are getting nothing for this extra contribution (4.2% versus 6.2% for example).

I would like to also see it written in blood that the withholding rate will never be greater than 7.5%/7.5% (up from 6.2%). Also I want to go to a pay as you go system for now, draw down the Trust Fund when the economy gets better, and remain with a pay as you go forever after that. No more Trust Funds. I think with these extra contributions that the actual withholding rate can be reduced from 6.2%/6.2%.

If insufficient money exists in the pay as you go (even after all income withholding raised to 7.5%/7.5%) then benefits should be slashed over the initial $9K (inflation adjusted) for everyone.

[hulka38]

11. It sounds like a very good Democratic idea.

I wonder if it will get support from the top of the Party.

[Poll_Blind]

12. Top of the Party used the idea to get elected and then Top of the Party promptly...

...forgot all about it once in office. :(

Maybe "forgot" is too kind a euphemism...

PB

[hulka38]

13. I think we both know it is.

Thanks for the info about the works of the good senators.

[kenny blankenship]

14. Oh, those Three Little Words! (How *hard* they are for some guys to say!)

"Raise the cap."

And whatever problem you think is there is definitively solved. You see donkeys, that's all you had to say.

[Poll_Blind]

15. .

:kick:

PB