By Susan Duclos
Immediately after news broke that Barack Obama's budget proposal would address changes to the Social Security program, liberals went on a rampage with statements vowing to stop him.
Before looking at those reactions, it is worth noting what the 2012 summary from the Social Security and Medicare Boards of Trustees, says:
The long-run actuarial deficits of the Social Security and Medicare programs worsened in 2012, though in each case for different reasons. The actuarial deficit in the Medicare Hospital Insurance program increased primarily because the Trustees incorporated recommendations of the 2010-11 Medicare Technical Panel that long-run health cost growth rate assumptions be somewhat increased. The actuarial deficit in Social Security increased largely because of the incorporation of updated economic data and assumptions. Both Medicare and Social Security cannot sustain projected long-run program costs under currently scheduled financing, and legislative modifications are necessary to avoid disruptive consequences for beneficiaries and taxpayers.Social Security and Medicare are the two largest federal programs, accounting for 36 percent of federal expenditures in fiscal year 2011
Lawmakers should not delay addressing the long-run financial challenges facing Social Security and Medicare. If they take action sooner rather than later, more options and more time will be available to phase in changes so that the public has adequate time to prepare. Earlier action will also help elected officials minimize adverse impacts on vulnerable populations, including lower-income workers and people already dependent on program benefits.
It is clearly stated that without changes, Social Security as well as Medicare are unsustainable.
Liberal Reactions:
“President Obama’s plan to cut Social Security would harm seniors who worked hard all their lives,” said MoveOn.org’s executive director Anna Galland. “That’s unconscionable. It’s even more outrageous given that Republicans in Congress aren’t even asking for this Social Security cut. This time, the drive to cut Social Security is being led by President Obama and Democrats.”
Stephanie Taylor of the Progressive Change Campaign Committee accused Obama of “proposing to steal thousands of dollars from grandparents and veterans” and threatened to subject any Democrat who votes for a Social Security benefit cut to a primary challenge.
“You can’t call yourself a Democrat and support Social Security benefit cuts,” Taylor said in a statement. “The President has no mandate to cut these benefits, and progressives will do everything possible to stop him.”
Jim Dean, the chair of Democracy For America, called the reports a “profoundly disturbing shot across the bow for the progressives who called their neighbors, spent weekends knocking doors and donated millions to reelect [President Obama].”
Obama's budget proposal is addressing Social Security for the main purpose of attempting to make the "grand bargain" of addressing entitlements in exchange for more tax increases.
Nancy Altman, who leads the advocacy group Social Security Works accuses Obama as using Social Security as a "bargaining chip," with liberals insisting Obama is doing this as a deal for another round of tax increases " to spread the burden of deficit reduction more evenly."
Two issues there..... Altman is correct, Obama is using Social Security as a bargaining, rather than addressing Social Security because it is unsustainable.
Second, Obama has often pushed that same talking point when speaking of raising taxes on the wealthy, claiming it is being done to "reduce the deficit," yet looking at his last round of tax rate increases on the wealthy, which he obtained in the fiscal cliff deal, every penny of taxes gained in that deal, have already been spent and not one dime went towards the deficit or to lower the nation's debt.
In fact, in 2010 an updated study found that over the entire post World War II through 2009, each dollar of new tax revenue was associated with $1.17 of new spending. Politicians spend the money as fast as it comes in—and a little bit more.
New tax revenue does not and will not pay down the debt nor reduce the deficit.
Tax and spend Democrats just continue to say it will in order to justify raising taxes.
