The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Saturday, May 31, 2014

Social Security: Ronald Reagan Continues To Haunt Us! How About His Social Security Legacy?

RePost from Connect The Dots USA. 

I trust you recall The Obama Team floated "Chained CPI" as the last Grand Bargain moved to a flop!

DROP THE CAP on Social Security!

While President Reagan was famously slashing tax rates for the wealthy, he was also slashing Social Security benefits and increasing taxes for workers and the middle class. In 1983, he forged the famous "bipartisan grand bargain" with House Speaker Tip O'Neill to gradually raise the retirement age from 65 years to 67 years. 

If you were born in 1960 or after, that grand bargain just robbed you of nearly $30,000 in retirement benefits for the average worker, and about $60,000 for higher wage earners (in $2012). Would you tolerate that if your company’s CEO reached into your 401k, took out that much money and put it in his pocket?

And even if you take early retirement at 62, your benefits are still reduced based on your full retirement age:

And now the Teapublicans and the advocates of "bipartisan grand bargains" are at it again — trying to trick folks into further raising the full retirement age because "Americans are living longer now" (not if you’re poor or blue-collar) and the "Social Security is in crisis" scare tactic.

In 2012, I watched now retired Senator Kay Bailey Hutchinson (R-Texas) propose a plan to gradually raise the full retirement age to 69, starting with folks 59 and younger. She also wanted to raise the early retirement age from 62 to 64 and decrease the cost-of-living adjustments (COLA) so Social Security benefits get eaten away by inflation. 

Of course, she never mentioned raising or scrapping the unfair, arbitrary wage cap and collecting taxes on income over $117,000. They never do — Republicans don't want you to know about that option because folks might like it. Remember this simple rule of thumb: Any politician or pundit discussing Social Security fixes who fails to even mention the $117,000 wage cap is either STUPID or LYING.

Wall Street CEOs have already decimated traditional pensions and are now hacking away at 401k's. Don't let them scam you out of your Social Security, too. It comes down to a choice: Either the top 2% pay Social Security taxes on all their earned income or the rest of us take a big haircut in benefits. Who are you going to fight for?

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