On Obama’s threats, and the ‘guarantee’ of Social Security
What really ought to scare Grandma? How about that President Obama has made it clear that her Social Security is “guaranteed” only if those in Washington feel like paying up?
From an editorial in Investors Business Daily:
Obama beat everyone … with his scaremongering claim that Social Security checks are at risk if he doesn’t get his way on the debt ceiling. “I cannot guarantee that those checks go out on Aug. 3 if we haven’t resolved this issue,” he told CBS News, “because there may simply not be the money in the coffers to do it.”
Wait! What happened to Social Security’s “guarantee”? You know, the iron-clad assurance of Social Security benefits in exchange for paying into the program your whole working life? It’s something Democrats constantly talk about, particularly when attacking Republicans who propose privatizing the program.
As Nancy Pelosi once put it: “Social Security has never failed to pay promised benefits, and Democrats will fight to make sure that Republicans do not turn a guaranteed benefit into a guaranteed gamble.”
The AFL-CIO warned in 2005 about “President Bush’s plan to replace Social Security’s guaranteed benefits with risky private accounts.” The AARP describes Social Security as “the guaranteed part of your retirement plan.” Etc., etc.
Turns out, this “guarantee” is a lie.
This is an excellent point that I touched on when Obama and the lame-duck Congress agreed last December to a one-year cut in the federal payroll tax (you know, the last time Obama called Republicans “hostage takers”). The cord between payroll taxes and Social Security benefits is being severed ever more.
If your payroll taxes truly entitle you to Social Security payments when you retire, then how could Obama withhold those payments from retirees now? Even if you understand that today’s workers pay for today’s retirees, but believe the politicians’ assurances that excess payments are safely ensconced in a trust fund, then you might wonder how Obama could avoid making Social Security payments when payroll taxes are still coming in and there’s all that trust fund money to make up the difference. (In fact, the politicians have already spent almost all of the trust fund money, and would have to use new tax revenues to pay back the trust fund.)
What’s more, Reuters’ James Pethokoukis earlier this week posted a chart demonstrating that projected tax receipts through the month of August would be enough to cover all interest payments on the debt, Social Security payments, Medicare payments, “essential” defense spending about about $50 billion of “other” for the month. As I’ve said before, that doesn’t mean there wouldn’t be a price, maybe too steep a price, to pay for failing to raise the debt ceiling — but it does mean there will be “the money in the coffers” to keep up Social Security payments. As he does too often, Obama is using a patently false example to make what otherwise is a defensible point.
Either Obama’s not being truthful when he says Social Security payments might be at risk, or he and his fellow Democrats have been lying when they assail Republican plans to reform Social Security as attacks on an otherwise rock-solid program.
So, which is it?
And are you still so sure that giving individuals more control over their own retirement funds is such a bad thing?
– By Kyle Wingfield
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Visitor Agreement | Privacy Statement
© 2013 The Atlanta Journal-Constitution
193 comments Add your comment
DB
July 14th, 2011
4:47 pm
@ RGB: The President balked because we need revenue increases in addition to the 5.2% spending cuts….
MrLiberty
July 14th, 2011
4:48 pm
brad – when money is taken from the private sector and spent in the government sector there is a loss in productivity and prosperity. The Koch brothers are scum. They are just using the libertarian label to gain a level of acceptability, but ultimately they too are using the power and force of government to steal from the private sector to line their pockets.
I have empathy for the out of work folks. Had our government not stolen so much money from the private sector, not destroyed our currency to payoff their banker friends, done the same to payoff their friends in the military industrial complex, etc. over the past 50 years or so (well truly since the creation of the Fed in 1913 and certainly since going off the gold standard in 1973), business in this country would be booming and all those folks who found job openings in the govenrment sector would have instead found openings in the private sector doing something productive instead of what government does.
I made a conscious decision to avoid working for the government because I would rather contribute to the productive sector of society and because I find it morally preferable to work in a job situation in which my company’s compensation comes through voluntary exchange. That same choice was available to everyone. Feeding the beast with labor is still feeding the beast.
You stink
July 14th, 2011
4:50 pm
Wingfield,
Your thoughts and ideas are full of sh—–t. Our economy is facing some serious problems. Everything that President Obama stated about the debt ceiling makes a lot of sense to me. I personally think that Obama should stick to what he believes in about the budget. Yes I think he’s telling the truth about Social Security.
raildee
July 14th, 2011
4:59 pm
When are we going to stop using America hard earned money on other people WARS. Between Bush and Regan the deceit would be at 7 trillion dollars. Let’s look at were most of the money is going and for what. Military (Iraq War, Libya and NOW Afghanistan). I found it sad that everyone keep talking about SS and Medicare, but not money that we are put into these WARS
detritusUSA
July 14th, 2011
5:27 pm
Keep it up republicans. You’re proving to all modern Americans what our (some of us) parents and grandparents always said about the republicans: they are the party of the wealthy and don’t care about ordinary Americans. The republicans just want us to die, and their conservative dupes follow along like the ignorant sheep they are.
gm
July 14th, 2011
5:29 pm
Lets see, Bush raised the debt ceiling 7 times and added 4 trillion dollars to the National Debt and the Rep hypocrites said nothing I guess the conservatives bigots of tea party people only cared about the future when Obama took office.
How can anybody follow these hypocrites?
Jefferson
July 14th, 2011
5:29 pm
Kyle, you are throwing little balls in the fan again, but thats just what you guys do for money. He should pay SS and stiff the military, they might attack congress.
Powerful guy eh?
At the end of the day(s), the GOP will cave and the drama will move on, just think what the lady is going to do if she gets to be president.
Ramzad
July 14th, 2011
5:36 pm
There are those who have the view that we should not raise taxes on “job creators.” However, when was the last time anyone here saw an ExonMobil or Haliburton table at a job fair?
Republicraps would have us believe that we ought to give the country to big business and special interests, but BP does not care anything more about America more than it does about Brazil or Venezuela or Norway or Kuwait. These multinationals are not like the Goodwill “putting people to work.” Kyle Wingfield probably have stock in both, so he is incapable of speaking the truth.
Why should a 95 year old great great grand mother getting $800 per month have to give up $50 of it so Exxon can buy another corporate jet? Obama; hold your ground. Lock this country down and let the “job creators” see if they will be able to find any place to hide from the roving hungry mobs.
Drifter
July 14th, 2011
5:43 pm
The job creators aren’t going to create jobs in this country unless there is no other choice…and there usually is a choice. Cuts taxes on them and instead of hiring 1 American, they’ll hire 2-3 workers in one of the “emerging” countries.
bob
July 14th, 2011
5:45 pm
Deb in Athens, back into the ditch ? When did the economy pull out of the ditch ?
That Black guy
July 14th, 2011
5:47 pm
Jed “killing the middle class, seniors, and poor is the republicans objective”
But if rebubs kill the middle class, seniors, and the poor, who would they steal from as you libs constantly claim?
Logical failure.
I Report (-: You Whine )-: Thee Magnificent!!! mmm, mmmm, mmmmm! Just sayin...
July 14th, 2011
5:47 pm
Ask the people that voted for him two-and-a-half years ago just how all this fairness is working out for ‘em and ask ‘em how their lives have improved. Do they have the new kitchen they were gonna get? Do they have the new car they thought they were gonna get? Is Warren Buffett sleeping in the gutter?
Hope and pocket change was what they got.
That Black guy
July 14th, 2011
5:51 pm
No Longer Repblican
July 14th, 2011
2:03 pm
Great way to debunk what Kyle wrote. I mean ALL those facts, charts, links, logical emotionless points really convinced me.
HA!!!!
Ramzad
July 14th, 2011
5:53 pm
@I Report: Your intelligence level could not help you to see past a new car and a new kitchen if we hooked up a telescope to it. You are deluded if a new car and a new kitchen is what your life is about. God help you.
Will
July 14th, 2011
5:58 pm
How nieve almost everyone here is! Especially the liberal minded folks, cant believe you honestly are happy with the production of our government since the last election. Your blind by a misleading agenda. To even think that Lilberals and Conservatives actually have different agendas is hilarious. Our government is in panic mode right now, and both parties are trying to hide it through so called “Headline News” events. Wake up people, our government is running a business as an uncontrollable train ride that will ultimately crash.
If you run a business, are you going to keep raising your debt, keep creating unnecessary programs, keep hiring when you have no money to pay your own salary, and so on….
We need to run our government more cleanly with more cost and price awareness.
Also, get rid of the federal governments huge role in our everyday lives. They should be there for one reason alone. If states are bickering over certain resources or other arguments then the federal government should step in and make a decision thats fair and honest for the states involved.
Will
July 14th, 2011
6:02 pm
Self worth and the ability to strive for something better is dying in this country, dying quick.
Chuck
July 14th, 2011
6:02 pm
Black Guy,
All of the facts, charts, links, and logical points wouldn’t convince anyway. You would just stomp your foot and cry out “I’m not playing anymore unless I get my way”. Sound like some people we’ve been hearing about?
Ramzad
July 14th, 2011
6:12 pm
@Will You should have given your little speech to George Bush when he was invading Iraq
and lying about Yellow cake uranium from Niger and outing a CIA agent to cover his
lie. You should have given your little speech to Cheney when he was securing
multi billion multi year tax cuts for those who were busy pimping the middle class.
You sound like Eddie Long on Sunday morning after a Saturday night at a San
Francisco bath house. How convenient can your Road to Damascus be?
RGB
July 14th, 2011
6:18 pm
I think liberals like to eat yellow cake uranium.
And they sure seem to know a lot about bath houses in San Francisco.
And they talk about “outing” a lot.
And pimping.
I’m beginning to put two and two together.
I Report (-: You Whine )-: Thee Magnificent!!! mmm, mmmm, mmmmm! Just sayin...
July 14th, 2011
6:25 pm
OK, Ramzad, I give up, what would you libs do with our money if obozo ever gives it to you?
Will
July 14th, 2011
6:26 pm
@Ramzad
Never blamed this whole crisis on one party, I agree that the republicans have done their fair share of outrageous spending. Im sure if you could actually look further in to it you would find much more than that. But, to blame it solely on the republicans is ridiculous.
Quit putting yourself in a category, and think for yourself. Use Logic!
Eat Your Peas Like a Good Liberal
July 14th, 2011
6:28 pm
Obama says we should rip off our band aids and eat our peas. What is he, our mommy? Does that include the 51% who paid no federal income tax last year after incentives like the EIC? Then he storms out of the budget debate in a hissy fit. So much for No Drama Obama, eh? Welcome to the real world where everyone doesn’t think like a Chicago poliltical hack. And saying “don’t call my bluff?” Anyone ever used that phrase playing poker before? Either Obama doesn’t play cards or he *is* bluffing. On to the news…….
“PRINCETON, NJ — Registered voters by a significant margin now say they are more likely to vote for the “Republican Party’s candidate for president” than for President Barack Obama in the 2012 election, 47% to 39%. Preferences had been fairly evenly divided this year in this test of Obama’s re-election prospects.”
Keep a close eye on the DNC main stream liberal media trying to circle the wagons on their guy and damage control wherever applicable (like blaming Bush stories).
“The president is planning an extravagant 50th birthday fundraising bash Aug. 3 at the Aragon Ballroom in Chicago, including a birthday concert teeming with celebrities and – for couples contributing $35,800 – a private dinner with the president. All this just one day after the government is scheduled to run out of cash.”
Wonder how many millionaire celebrities will fly in on their corporate private jets – the type Obama keeps childishly bringing up in a state of class warfare.
“House Minority Leader Nancy Pelosi (D-Calif.) said she is “almost too busy” to continue listening to what is going on in the debt limit meetings at the White House with congressional leaders.”
Is that the same Nanny Pelosi who said ObummerCare would create 400k new jobs almost instantly? Or who said ObummerCare would create jobs through entrepenuers who would be free to do other things with their money and start businesses instead of worrying about their health care? Botox breath wouldn’t know job creation at a corner taco stand.
“DALLAS — At least eight people were hurt Thursday morning while scrambling to line up for a limited number of Dallas County [Section 8] rental vouchers — after waiting for hours in their cars. ‘It was a madhouse,’ said applicant Ada McKinsey, who was injured as the crowd closed in around the door. ‘People pushing, fighting.’”
Rumor has it a Dallas Cowboys scout was there with a stop watch looking for speed and the ability to push through the gravity challenged folk.
rob
July 14th, 2011
6:28 pm
There you kids go again, following the carrot on the stick that the republicans are dangling in front of you. Why would you want to abolish social security? Do you think you’re going to end up with a bigger paycheck? Think again, cause all of those millionaires and billionaires out there need your “paycheck deductions” to fund their tax cuts they are unwilling to give up. If they kill social security, if they discount social security anymore than they did without a COLA for two years already, you’re going to see the economy blow up. Think you’re safe at your jobs? You’ll be pawning your tattoos and piercing to eat. Learn to think on your own. This is what they were trying to teach you in HS and college. Think about how these changes are going to effect you, and stop listening to these talking heads and used car salesman turned republican Congressman. Obama has made some mistakes, and I certainly don’t agree with some of his spending programs. But social security and medicare are insurance policies many of us have already paid in full.
Will
July 14th, 2011
6:29 pm
@RGB
Comment was great, pretty hilarious
George P. Burdell
July 14th, 2011
6:31 pm
The corporate jet tax benefit amounts to $300 million per year. How in the world do you equate that with granny losing $50 a month out of her Social Security check? If the two were even directly related, it would be more like $0.44 per month out of her check. Talk about totally misrepresenting facts.
If Social Security taxes are such a sticking point, why don’t we just track the amount put in by each number, pay a interest payment to the outstanding balances, and track payouts by the account. We know you would never agree to such a thing because while the tax is regressive, the payouts are definitely progressive, and heavily so.
gm
July 14th, 2011
6:34 pm
The God of the Rep party Reagan raised the Debt ceiling 17 times, increased taxs, but the retards on the right were ok with that, this shows what a bunch of idiots in the tea party and hypocrites in the rep conservative party.
They will do anything to try to hurt Obama chances of wining next year, they care little about America but yet the idiots continue to support them.
Will
July 14th, 2011
6:35 pm
@rob
I dont think anyone truley wants to eradicate SS. I think what people want is to have SS money reserved for SS purposes only. I dont think the government should even be allowed to handle it and tap into it.
Eat Your Peas Like a Good Liberal
July 14th, 2011
6:44 pm
How many of you bed wetting liberals were worried about SS checks not being sent out over the past TWO YEARS that the Democrats failed to pass a budget entirely? Yeah that’s what I thought.
And SS will be completely insolvent in less than 25 years, so hopefully those with at least that much time left to retire are making other arrangements for their retirement. But my guess is that well over half are not, and most of them vote Democrat.
John Radney
July 14th, 2011
6:48 pm
What, 70 to 85 years we live. Ane you have got to have you SS check. What have tyou done all those years. If that’s all you have, kill your worthless self. I would be ashamed to admit I had to live from govt handout to the next.
That Black guy
July 14th, 2011
6:48 pm
You People Are Suckers
July 14th, 2011
2:57 pm
Keep working your thinking cap, I think it’s malfunctioning. Kyle, in the column about what ever percentage not paying federal income tax is valid. lets use this example.
You buy a car from your parents for $1200 making $100 per month payments. At the end of the 12 months your parents give you $1300. Did you pay for the car?
$1200 = yearly federal tax burden
$100 = federal payroll tax deductions
$1300 = tax refund
Get it? Good!
Dirty Dishonest Donkeys
July 14th, 2011
6:51 pm
Only we should handle our SS money, right Will?
Same said for the rest of our “safety net”. We don’t need crooked middlemen like these politicians and their crony bureaucrats we have now handling our money taking care of our business. We can do a better job than they ever will.
Eat Your Peas Like a Good Liberal
July 14th, 2011
6:53 pm
“I would be ashamed to admit I had to live from govt handout to the next.”
Actually John, it’s not a government handout. It’s a government PONZI scheme – like the type if a corporation gets involved with, people go to JAIL over. But our political halfassed hacks in Washington (mostly Democrat) like to pretend is safe and secure (they said the same about Fannie/Freddie too).
That Black guy
July 14th, 2011
6:58 pm
RenaP
July 14th, 2011
3:28 pm
Robin Hood stole from the gov’t (tax collectors) to give back to the people that paid the taxes.
killerj
July 14th, 2011
7:00 pm
Well Well Well,more trash from under the rug,nice to know both sides are doing such a wonderful job………..Go Tea Party.
Eat Your Peas Like a Good Liberal
July 14th, 2011
7:05 pm
“Robin Hood stole from the gov’t (tax collectors) to give back to the people that paid the taxes.”
Must be that top 25% of income earners that pays nearly 90% of them…
Truth Squad
July 14th, 2011
7:09 pm
Can we please tell the truth?
Republicans have always been opposed to programs such as Social Security, Medicare and Medicaid. That’s historical fact.
Now they have voted for a plan that would shift over $6k in Medicare costs onto seniors without doing much at all to control costs.
Let us not forget that President Bush tried to privatize Social Security, another $2 Trillion boondoggle that would have handed Wall Street even more control over our lives.
Republicans will tell you anything and with a straight face. For example, according to Fox News, there were no terrorist attacks on U.S. soil while President Bush 43 was in office. That’s right kids, just like deficits don’t matter and President Obama is a foreign-born Muslim operative out to destroy this fine country!
The Social Darwinists are out for all to see. If you live in this country, somewhere you benefit from “big government”. Some sad souls have been deluded into believing they are the predators when they are, in fact, the prey! You see the way it works is that there is someone richer and more powerful and greedy than anyone commenting here today. The way social darwinsim dictates that after they finish with bed wetting liberals and all the people you despise, they’ll have no more use for you.Yep, they’ll finish you off afterwards and destroy each other.
I swear some of y’all don’t have one good half-lick of sense in your head.
That Black guy
July 14th, 2011
7:12 pm
MrLiberty
4:48 pm
“The Koch brothers are scum”
I’ve always wondered why the left always bring up the Koch Bros (who employ 70,000 people http://en.wikipedia.org/wiki/Koch_Industries)
but never bring up George Soros (not sure how many people he employs but I bet it’s not 70,000)
they BOTH do the same thing politically, BUT Soros has collapsed the currency in at least 1 maybe 2 countries. Why no comments about Soros? Because he’s a lib?
Dirty Dishonest Donkeys
July 14th, 2011
7:12 pm
Lies and liars.
mountain man
July 14th, 2011
7:18 pm
And the Republicans (by way of Ryan) have been saying that the money in the SS trust fund isn’t really there. It is only IOU’s, sort of like Savings Bonds, and the US really doesn’t have to honor them. Good luck with that one, Repugs. Try that and you will guarantee a Democratic victory next November.
Truth Squad
July 14th, 2011
7:22 pm
Raise taxes on Soros and the Kochs. Really simple stuff.
For those of you who like facts, here’s a nice graph of tax rates and job growth: http://www.washingtonpost.com/blogs/ezra-klein/post/tax-rates-and-job-creation-in-one-graph/2011/05/19/AGh9Z1oH_blog.html
That’s right folks, we need to bring back the rates of the Eisenhower and Kennedy years if you believe the b.s. about “job creators” and their tax rates.
See, you don’t need to call names and recite talking points when you have reality on your side.
That Black guy
July 14th, 2011
7:24 pm
Chuck 6:02 pm “You would just stomp your foot and cry out “I’m not playing anymore unless I get my way”.
Hey Chuckie, since you are clairvoyant and KNOW what the future will be, can you give me the lottery numbers for tomorrow?
BTW I don’t have a problem with a tax increase, I just want to see REAL cuts now. What they are offering is reductions in increases of FUTURE budgets.
I.E. they were going to increase the budget for DOE by $25B, as a compromise they are offering to increase the budget for DOE by ONLY $23.5B. Is that a cut?
Dirty Dishonest Donkeys
July 14th, 2011
7:26 pm
Lies and bigger liars.
Concerned Citizen
July 14th, 2011
7:34 pm
As long as I’m paying Social Security and I’m 53 and having payed the max for years, my parents on Social Security are getting their checks. Anything short of that I’d back anyone or group who finds a constitutional law that allows “We the People” to remove members of Congress or our President by a vote of the people. Washington and especially President Obama should be eternally shamed for scaring our elderly by radical statements not to send checks out. Pleeze…
Ross Perot
July 14th, 2011
7:40 pm
Our first waffler er president finally made a stand on something. It just happened to be a really stupid thought. He must want to kick over the retiree bee hive. I guess he knows himself well… maybe he should go back to the world of indecisivness
Check these stats
July 14th, 2011
7:55 pm
Easy way to solve this entire issue. Raise the debt ceiling as stand alone legislation with no strings attached. The same way republicans did 7 times under Bush. More smoke and mirrors from ‘fiscal’ conservatives.
Lil' Barry Bailout
July 14th, 2011
8:11 pm
Obozo’s “my way or the highway” demands for more spending and higher taxes are going to prevent an agreement on raising the debt ceiling.
Why do Democrats hate America?
Lil' Barry Bailout
July 14th, 2011
8:12 pm
Time to eat your peas, parasites. The productive class is ready to sacrifice all the many benefits the government provides them, now it’s time you sacrifice too.
Ramzad
July 14th, 2011
8:14 pm
@RGB: You are making progress by being able to put two and two together. Now if you could just liberate your mind from Right Wing propaganda you probably would get your GED.
Ramzad
July 14th, 2011
8:18 pm
@Lil Barry Bailout it would be great if you started thinking for yourself and recognize that a tax cut for Exxon-Mobil is not a boost to your working class life, but helping a 90 year old widow to keep food on her table is the essence of the American spirit.
Lil' Barry Bailout
July 14th, 2011
8:20 pm
Ramzad: helping a 90 year old widow to keep food on her table is the essence of the American spirit.
—————————
Maybe you should try it, hypocrite.