Alan Simpson to AARP and NCPSSM: You’re phonies! Social Security sinking fast(er)!
Social Security is in real trouble and Alan Simpson is spitting mad at the two groups he thinks are standing in the way of reform. Turn em off, says Simpson, they’re all phonies …. and just for good measure, the AARP is just a bunch of marketers. “They sell stuff”.
Alan Simpson, co-chair of the President’s deficit commission let’s it all hang out, as he usually does, in going after the people he believes are leading the charge against social security reform. And based on figures released last night, he has good reason to be angry.
First, they’re raising the red storm flag a little earlier than expected on the solvency of social security. The CBO reports that Social Security will begin paying out more in benefits than it takes in THIS YEAR, instead of 2016 as previously projected.
Social Security will post a $45 billion shortfall in fiscal 2011 and will pay out more in benefits than it accepts in payroll taxes through at least 2021 without legislative changes, the Congressional Budget office said on Wednesday.
The CBO made the forecast in its twice-annual assessment of the U.S. budget. The non-partisan office, which provides budget and economic analysis to the U.S. Congress, said that deficits would total $547 billion over the period from 2012 to 2021.
It get’s worse. The CBO reports if something isn’t done the fund will run dry in 2037. And if something isn’t done you can lay some on the blame on the friends of old people, AARP and, while he doesn’t mention them by name, the National Committee to Preserve Social Security and Medicare. The latter, headed up by Connecticut’s own Barbara Kennelly, has been running adds against Republicans and Simpson’s Committee, charging they want to eliminate the programs and privatize them. That was enough to set Simpson off. It’s a great bite because he also explains what he would like to do.
httpv://www.youtube.com/watch?v=wMalfgFRslw
What brought about the accelerated decline of the SSTF? AP at Hot Air makes a strong case here, with some depressing charts.
Remember the payroll tax cut for employees that was part of last month’s tax cuts deal? Democrats warned at the time that that would play into the GOP’s hands on entitlement reform by establishing a new lower baseline rate that’s insufficient to fund the program. (The current rate is temporary, but as we’ve learned, temporary tax rates are hard to raise.) The result: An accelerated, expanded shortfall in Social Security that will inevitably intensify cries that the program is unsustainable and needs to be reformed. Which, of course, it does:
Indeed. Both Simpson and Paul Ryan have offered reform plans. Neither would change the current program for people over 54 years old. For younger workers, options for retirement would be voluntary. Here’s Paul Ryan’s outline. As Alan Simpson reminded viewers last night, SS was never meant to be a retirement program and unless young people can be convinced to begin planning for retirement, sans SS, the program will collapse. It makes you wonder, are these groups really trying to help senior citizens, or simply preserve a failing federal program that is the flagship of progressivism? I think the latter.
UPDATE: Here’s Simpson’s Commission Plan. http://www.fiscalcommission.gov/
11 Comments
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Jim, now that I had since 2009 crossed into "AARP" land, I get all kinds of stuff from these folks, just to "beg" for membership. PLEASE, IMHO, age is just a number, most days, except when it comes to shoveling out "snow" LOL! :)=^..^=
But on a more serious note, this group is simply one of the many Democrats and liberal front groups, AARP.
Jim, just posted your article on Free Republic. Here is the URL:
http://www.freerepublic.com/focus/f-news/2664052/…
Time to call in the markers from the Feds. Only thing wrong with that is that it adds to the deficit. We stole your money from SS now we're going to rob your pockets to pay you back.
You are right TomL. Unfortunately the ways of getting the money back in (at the State/Municipal pensions too), is going to painful for everybody. I hope nobody gets a free pass, because all of us had a hand in the cookie jar.
Never joined AARP although I sure am old enough. It's just like GreenPeace was in the 80's, it starts with laudable ideals than gets infiltrated by a wily political organization and becomes a very effective political lobby.
With the current tax burden for most at 40%, they wonder why it is so difficult for people to save for their own retirement.
Only answer is complete tax reform and allowing people to be responsible for themselves instead of stealing my resources to pay others.
But that takes real leaders to drastically cut government spending, reign in the out of control unions and get back to only constitutionally allowed legislation.
I can dream can't I?
Social Security Trust Fund? There's no trust and no fund.
"Stealing from Peter to pay Paul" has become "stealing from Peter to pay Peter"! It was bad enough as originally conceived as a Ponzi Scheme of huge proportions, but now (well, late 60's anyway) the asshats in Congress have stolen from SS to finance the general fund so they could pretend that their social engineering was far cheaper than it really was/is!!
Mark my words: next up is the theft of the 401K's and other retirement programs to prop up SS, just like they are doing in parts of Europe and Argentina. They are running out of legit options, and none of them has the cashews to do what needs to be done.
Hi Jim! Here is the RVO article via Free Republic:
http://www.freerepublic.com/focus/f-news/2664052/…
Opps, I forgot, I posted the FR article yesterday! Me bad, sorry! :)=^..^=
It's obvious that Simpson, as a Republican, wants old people to die on their own without the government's help.