While many chuckle over Paul Ryan getting booed at the AARP conference – and sure, that is funny – President Obama actually made some news in his appearance. Because it’s a year divisible by four, he returned to a progressive idea on Social Security that he endorsed in his last campaign.
President Barack Obama revived a 2008 campaign promise on Friday, telling the crowd at an AARP forum that he would be open to raising the level of income on which Americans pay Social Security taxes.
“You know, I do think that looking at changing the cap is an important aspect of putting Social Security on a more stable footing,” Obama said, via satellite feed. “And what I’ve said is, is that I’m willing to work with Republicans and examine all their ideas, but what I’m not going to do, as a matter of principle, is to slash benefits or privatize Social Security and suddenly turn it over to Wall Street — because we saw what could happen back in 2008 and 2009 when the stock market crashed, and we are still recovering from that.”
You’ll notice that he really hit opposition to privatization hard, which isn’t really on the table at the moment.
As you know, we have a payroll tax cap, currently at around $110,000. Someone making that amount pays the same in Social Security payroll taxes as the highest-paid CEO in America.
When Obama first looked at this in 2008, he suggested a kind of doughnut hole. You would exempt payroll taxes from $110,000 to $250,000, and then lift the cap on all income above that. This would provide enough revenue to cover most of the 75-year shortfall in the Social Security program. You could probably adjust that doughnut hole downward, making it even more progressive while taking in relatively the same level of revenue. And this happens to be the most popular way to deal with the shortfall, which I should explain is PROJECTED and not actually set in stone. Actuarial projections vary wildly, and while the ones for Social Security actually don’t show much of a shortfall relative to the possible solutions out there, they should be viewed with a jaundiced eye.
Do I expect this legislation to take off as part of a grand bargain. No. But between this, Joe Biden’s assurance that there will be no changes to Social Security, and the letter from Harry Reid and 29 Senate Democrats in all pledging not to cut the program, there could certainly be worse signs out there. I’m all for talking about how to cover the projected shortfall in Social Security, outside of the grand bargain/catfood commission process. And Obama’s position, stated today, represents the best possibility for a successful resolution.




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“And what I’ve said is, is that I’m willing to work with Republicans and examine all their ideas…”
Why?
Any bets on how long it will take O to abandon his support for raising the cap? Will it take as long as it took to abandon the public opton? Or negotiated prices for pharmaceuticals? Or support for unions?
My guess is he’ll lose his support for raising the cap faster than he lost his comfortable shoes.
The 2012 payroll tax cap for income is $110,100 to be precise.
http://www.socialsecurity.gov/planners/maxtax.htm#maxEarnings
We, the working class and the retired need a pre-election pledge by President Obama not to cut Social Security benefits by any means.
http://www.cepr.net/index.php/op-eds-&-columns/op-eds-&-columns/does-president-obama-want-to-cut-social-security-by-3-percent
Because, beneath it all, the man’s a puss.
I would suggest a subsequent post on why you believe this new round of campaign promises given the near total fail on the last set.
LizinOregon
If Obama supports raising the cap, I suggest he submit a bill to Congress calling for just that.
I can’t understand why he hasn’t done it in the FOUR YEARS he’s already been President, though. I mean, he’s very honest and would never pander for votes, right?
The Obama must just be really busy or something. Poor baby.
Yes, because Obama never breaks his campaign promises.
Yup, candidate Obama is a pretty good democrat.
President Obama? Not so much.
He’d better be careful about exposing seniors to his “triflin’ ways”, however. Collectively, they have long memories. And they vote.
Too bad he’ll never have to face them after he goes back on this promise – again.
In the meantime the alleged “shortfall” is caused by not taxing working Americans now so Obama can say he has to cut benefits.
Barack “FDR” Obama:
The Bush tax cuts for the rich will be extended and Social Security benefits will be cut (the only question is when and by how much).
What I notice is that he continues to promise not to “slash” benefits. He doesn’t promise not to cut them, or to lower them, or to use a chained CPI, or to otherwise diminish them. He only says he won’t “slash” them, and leaves that term undefined.
Has anyone ever seen Bay & Pat Buchanan in a room at the same time?
Methinks Pat’s got a Mrs. Doubtfire act goin on to double his intake of cash.
Right. Weasel words. Here’s another, “suddenly.” He vows not to turn SS over to Wall Street “suddenly.”
The privatization thing is not even on the table. Why bring it up, and why insert a weasel word in your denial?
I think you are correct…voice, taste in clothes…No doubt, indeed.
So would the last three words be sorta like the operative phrase?
On the other hand:
Copy that.
Come on DD. This one isn’t hard. Obama does want to raise the income cap a bit and he does want to make the income tax a little more progressive. That’s what makes him suck less.
So, you’ll get a modest increase in income under the cap and he won’t “cut” social security benefits. He’ll “slow the rate of growth” in the program possibly with a chain linked inflator, and in the process “make the program solvent for future generations.” And you’r f@cking retarded if you do anything other than applaud loudly.
And we see Romney campaigning on removing “God” from the coinage, which nobody looks at and nobody is talking about doing.
Much better to campaign on imaginary stuff than talking about real solutions (which will be painful if they exist at all) to real (terrifying) problems.
SS needs more than some tweaks.
SS is supposed to be part of a three-legged stool supporting retirement, the other two are your savings (average savings for a new retiree today is something like $10,000) and your defined-benefit pension (ask your parents about those).
We need to face the reality that for most people retiring today and into the future, SS is the ONLY thing they are going to have. It needs to go from a supplement to a full public pension. Once again, the private sector has failed and the public sector needs to pick up the slack.
The second reality we need to face is that there simply isn’t enough paid work to go around, and we need to get people out of the work force. Instead of talking about raising the retirement age, we need to drop it to 55.
We need to implement a surtax on the wealthy to finance the planned, orderly redemption of the bonds in the SS trust fund (which is a savings plan, not an investment portfolio), remove the cap on income subject to SS taxation, then look for new revenue to both increase benefits and reduce the retirement age.
Or, we could campaign on ramping up the War on Unicorns.
Be wary of Obama reviving any campaign promise he made in 2008. Remember he had a majority in both houses of Congress for the first two years of his term and very little was passed because he insisted on negotiating with the GOP. Didn’t he give an interview recently in which he stated that he was willing to “compromise” with the GOP should he be re-elected? Compromise? His code for capitulation. I expect we’ll see proposals from the Catfood Commission to be revived and couched in Beltway spin.
He has shown us again and again that SAYING he supports something does not mean he supports it. In fact, it usually means just the opposite. Talk is cheap.
You don’t say. And I should believe what Candidate Obama says … WHY???
Fool me once etc etc
Intent with the last ‘reform’ was to hit 90% of earnings. So, hit 90% of everyone’s declared income (not just earnings), providing a low & middle class tax cut and fully funding the program to return retirement ages and COLAs to those promised. Heck, we could probably even reduce the retirement age to free up jobs, or else lower the ding %.
“Endorsing” something means saying you think it’s the best course, and why you think that, and what you plan to do to make it happen. Just using the words “looking at changing the cap” (changing?) doesn’t mean anything.
This is the man who supported a chained CPI in July 2011 and was willing to offer raising the Medicare eligibility age in exchange for Republican agreement on revenue. A one percent change in the CPI would lead to a 20% cut in Social Security benefits by the age of 85. That is assuming the person retired at 63. A chained CPI works like a negative compound percentage of a cut, increasing in potency the longer you live and receive benefits. Works out to being a punishment for living a long life.
This is a President who has been saying that he is going to cut retirement benefits since January, 2009. So saying that he won’t ‘slash’ benefits again, sounds like double-talk. Sorry, but that is how it looks from here.
It was July 6th,2011: Obama agreed to cuts to Social Security, Medicaid, Medicare if the Rs would agree to revenue increases.
HERE.
4 trillion in a ‘grand bargain’./s
people, people, people,
Our leader hasn’t said that he even supports the idea of raising the cap, he supports looking at the idea. That’s a big difference, and one that will be pointed out about 2014 when one of us “f’in retards” tries to bring it up.
He said: “I do think that looking at changing the cap is an important aspect of putting Social Security on a more stable footing”
This has to be repeated:
Fool me once, shame on you. Fool me twice, shame on me.
Anyone who believes anything (economically progressive) that Obama says is a fool.
Here is a list keeping track of all Obama’s most important campaign promises and how he has lied on key promises where they matter most. There are other websites keeping track of similar lists, I am sure.
http://www.Obamatheconservative.com
There is a long list of proof that Obama’s agenda is to wage a war on the middle class. eg. he appointed Simpson and Bowles to the commission to cut the deficit; he cut contributions to social security by 30%–without being asked–and tied it to the federal budget–something no Repub president before him has succeeded in doing or even attempted to do.
This guy says whatever it takes to get elected, and after he is elected, he stabs you in the back. It has happened already. And please, he is NOT weak, he does NOT cave.
The proof that Obama and all of our Representative politicians aren’t even trying is that you could cut Social Security Tax by over half if it was applied to everyone. It would be the biggest job encouragement that could be given to small business and impossible to politically defeat.
Right chef ,only the congenital suckers believe he is weak and always caves .His unique ploy of self-negotiated capitulation shows he doesn’t lose the fights ,but instead ,intentionally throws the fights .He’s devised a ruthless passive/aggressive scam by which he wins by losing pursuant to advancing the same corporate agenda as the pubs while still keeping the illusion of being well-intentioned but weak and misguided in seeking bipartisan consensus and fighting fairly .
He wouldn’t fulfill his Constitutional duty to use executive power in the 2011 debt crisis pursuant to plying this invidious ploy for advancing his austerity obligation to his bankster paymasters,and it worked perfectly .He even tried it with medical weed by claiming he was powerless to reclassify it because of the pubs ,then he went silent when my fellow ”retards” reminded him it could be done by executive order ….Vote Jill Stein .
I agree totally agree about Obama’s scams, defogger. The only mystery is why we live in a mainstream media-created alternative reality where scams are not acknowledged as scams, especially when they come from Obama, who in the media’s eyes can do no wrong.
Mind you, he uses executive orders where it suits him, eg. to fight democracy. For example, he used executive orders to try to institute SOPA and PIPA by the backdoor, via ACTA. He used executive orders to give himself the power to declare martial law etc.
Yes, we need to maintain and bump up Jill Stein’s votes, to hopefully 5%. Right now, she has 2.1% in just a few weeks of campaigning. Buy some campaign banners from her site, and paste them on your windows, if your windows face the street.
“Because it’s a year divisible by four…”
No smileface big enough. :o)
Well said chef ,you delivered the executive power ruse full circle .Have a nice evening .
hmmn. yeah. you’re right. i should have read o’s statement a little more closely. with O, it probably just comes down to: crap policy always wins out over good policy, regardless of what comes out of his mouth.