The Gang of Six plan, Social Security and other entitlements
Jim Galloway’s Political Insider blog will return later this week.
Some additional points on the deficit reduction plan by U.S. Sen. Saxby Chambliss and the Gang of Six:
– When U.S. Sen. Tom Coburn, R-Okla., withdrew from the bipartisan effort to reduce the deficit after five months of negotiation, many in Washington pronounced the Gang of Six dead – or at least, irrelevant. Which in D.C. is worse than dead.
But on Tuesday, there was Coburn in the members-only briefing of the Senate, endorsing the proposal. What brought him around? For one thing, an increase in 10-year savings from Medicare and Medicaid, from $370 billion or so to $500 billion. Just how those savings will be accomplished are details that would be left to the proper Senate committee.
– Look for a good deal of emphasis today on making Democrats more comfortable with the Gang of Six plan. “Balancing the deficit on the backs of the elderly” is the slogan they’re vulnerable to. Proponents today are emphasizing that savings from Social Security reform – means testing is a possibility – are to be plowed back into the Social Security system. They wouldn’t be applied to the deficit.
– The silence – so far — from the House Republican side is a sign that the Senate venture is being taken seriously. Certain elements of the GOP base and the tea party, of course, are another matter. One Tweet from this morning from Adairsville Rob to U.S. Rep. Phil Gingrey, R-Marietta, who was celebrating his Tuesday vote for the GOP caucus’ cut-cap-and-balance plan:
Thank you, sir! Now PLEASE run against Saxby Chambliss! Pragmatism is killing the Republic!
That is a thought certainly worth discussing.
- By Jim Galloway, Political Insider
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246 comments Add your comment
RetiredSoldier
July 20th, 2011
2:44 pm
Dan-
Briefly, I believe Red’s point is what entitles government to more and more of someones wealth, regardless of how “rich” someone is. Second, corporations don’t pay taxs really, they just past that expense on to you and me.
td
July 20th, 2011
2:52 pm
Dan
July 20th, 2011
2:37 pm
Where is the money coming for the corporations to pay all of those taxes? It is either coming from one of two places. They are either passing on those taxes to the consumers or they make less profit and as a result pay less dividends or their stock is worth less. Either way the consumer is paying the taxes in higher prices or their 401K, retirement plan is not worth as much money.
jsmtih
July 20th, 2011
2:53 pm
PEOPLE PLEASE !!!! have you not learned that America was founded on the idea of self determination !! the INDIVIDUAL!! take care of yourself people, the fact that some of you think government programs are a good thing just blows my mind. who in the heck is teaching you people and what are they teaching ?? my god , no one should ever want a government handout of gov assistance… take care of yourself and lets have a country where the government stays out of our lives
Unemployed in S GA
July 20th, 2011
3:05 pm
How can they CAP Social Security COLA? You can’t get much less than ZERO.
How about cutting out some of the EXTRAVAGANCE of the way folks in Washington live:
Private jets to everywhere, 26 servants for the First Lady (How many does Queen Elizabeth have?)
Getting paid for not showing up when Congress is in session…. Lifetime benefits for one term of service, Endowments to Arts that only a few ever see, Giving away $$ to educate folks that have no business in college anyway, and, Wasting $$ on every turn… (Just to name a few)
Folks in Washington need to come down to the REAL world and see how HONEST folks deal with their budget issues. You 1st look at what comes in, and, when it is Spent it is GONE. Overdrafts at he Bank are expensive…(I learned that when I was a teenager.)
You CUT up the credit cards, and if you” CAN’T Pay For it, You DON’t NEED it”, (Wisdom from my Grandparents) You drive a car that is PAID FOR, live in a home that is WITHIN your means, STAY HOME when you can not afford to take a vacation, and CUT OUT THE FAT from your grocery list because it is better for your health to do without it. You HELP your neighbors in ways you can, but you DON’T butt into their business, and you TRUST GOD to PROVIDE.
I have been unemployed for 2 years and I sleep well at night because I don’t OWE anything to anybody but GOD.
I PRAY that our Leaders can learn to do this also.
Red
July 20th, 2011
3:06 pm
So a person must be punished because they hoard their money? Is that the logic I hear? Because a person does not pay it out but actually save it, they should pay a heavier tax? Then with this logic, tax every 401k and savings account as well. You do realize that these rich actually invest, yes the word invest, in other things. You know the evil corporate jets Obama always whines about? It does take middle class workers to build them and the components. The yachts that Democrats whined about in 1990? Jobs.
The irony here is that the party that pretends to favor the working man has done quite a bit to ensure Wall Street still remains rich. Note the markets going up since Obama has been in office. Notice the bailouts – who received billions in tax money? It surely was not me. Banks were bailed out – you know those rich who hold onto money as you say?
As for the shovel ready needing better management – your point is taken and it actually backs up the point of many conservatives. Government cannot manage jobs. Government cannot manage these programs. When a system is designed as a spoils system, certain people benefit, cash out, and then the ‘project’ gets little traction. A few bridges are built. Money is exhausted. Job done. Layoffs come back. A road is paved. Job over. Layoffs. Government contracts to short term projects watch much of the money get lost in payouts and when the job is over, what is left?
Instead of paying the billions to failed banks, the government could have easily divided that same money pool up to each family – say $10,000 for the sake of the argument. That money could have been used to shore up credit of that family or used to spend on goods. But instead the billions shored up companies that do nothing in the way of generating jobs or the overall economy.
td
July 20th, 2011
3:27 pm
OMG and the rest of my Dem friends. Below is an article showing point 1. If you want to put people back to work and at the same time raise revenues and collect more taxes then write your Dem. congressmen and the President and tell them to stop the nonsense.
http://thehill.com/special-reports/energy-july-2011/172391-end-moratorium-on-offshore-drilling-now
Lynn
July 20th, 2011
3:29 pm
I wish everyone would stop referring to Social Security & Medicare as entitlements – they are NOT. Workers and their employers paid into these systems, and then our government stole all the money and is now having to pay the benefits. If you want to cut real entitlements, cut Medicaid, Food Stamps, WIC, Unemployment, etc. These are true entitlements by definition.
RetiredSoldier
July 20th, 2011
3:47 pm
I think all the liberals have been run off by this burst of common sense. Shame on us!
Ghost Rider
July 20th, 2011
4:05 pm
yuzeyurbrane:
You do know that the Social Security funds have been spent long ago, right? The money isn’t there! The monies “held in trust” by the government went to fund “The Great Society”. The money is owed to the citizens, but has been spent by the government. Therefore, the fund is NOT good for the next 25 years, and certainly NOT good for the next 75 years. If you wish to believe that it is, please continue to do so. Maybe you sleep better at night with the lie rather than the truth.
double
July 20th, 2011
4:13 pm
Off subject question?Td you mention drilling shale for natural gas.If I understand this involves horizontal drilling, then hydraulic fracturing.If this be the case.Then what are we doing to our ground water?If the fracture liquid is reclaimed how is it treated,and disposed?
TSA on the way to second base
July 20th, 2011
4:24 pm
@Doug and others…
WHAT CREDIT RATING? The US is debt almost 15 TRILLION dollars; the federal reserve is just printing more money… anyone here realize what is going on?
http://www.youtube.com/watch?v=k6zpfE7WjHI
cs
July 20th, 2011
4:31 pm
when they cut all foreign aid first, then start whackin the war mongering budget, then farm welfare, err subsidies, becomes extinct, i might take this bunch of clowns on both sides serious. americans first for a change!!
MrLiberty
July 20th, 2011
4:35 pm
If MASSIVE cuts are not made from DAY ONE, no proposal will be worth a damn. No future congress will ever abide by spending limits set by today’s congress – guaranteed (your honor, I would like to introduce the historical record as my evidence).
Only Ron Paul after 30 years in congress seems to get this. All the others wish to come up with huge numbers that stretch over 10 years but mean little on an annual basis and will mean less when the next budget is proposed.
The government defaults every time it raises the debt ceiling, every time it prints money out of thin air to pay its bills, and every time it screws the america public to pay off its debts to the worldwide banking cartel that really runs this country.
end the fed.
gsueagle
July 20th, 2011
4:44 pm
saxby looks good standing with dick durbin. two peas in a pod. looking forward to the day when i can vote against that rino
CG
July 20th, 2011
4:46 pm
I don’t know why people are against means testing for social security…especially if that means testing brings about savings that are plowed back into social security — thereby PROTECTING the most vulnerable.
…and keeping it around for when I’m ready to retire and may be vulnerable!
td
July 20th, 2011
4:50 pm
MrLiberty
July 20th, 2011
4:35 pm
If MASSIVE cuts are not made from DAY ONE, no proposal will be worth a damn. No future congress will ever abide by spending limits set by today’s congress – guaranteed (your honor, I would like to introduce the historical record as my evidence).
You are absolutely correct. This is the reason I have said from the beginning spending cuts first and revenue enhancements in the future.
td
July 20th, 2011
4:55 pm
CG
July 20th, 2011
4:46 pm
Simple, the day you start means testing the program is the day it turns into a welfare program. How much money is too much to receive SS? Will that be the same 20 years from now? Why do people have to pay into something they will never get anything out of? Is that fair?
Remember the 16th amendment (income tax) was set up on the promise that only the top 1% would pay 3% of their income for the betterment of the rest of the people. How did that work out?
kc
July 20th, 2011
4:56 pm
can we end/stop some of free trade agreements that result in massive job loss?
seems like even if cuts are made and taxes were lowered other countries will just lower theirs as well….race to the bottom?
any economists in the house?
Bob
July 20th, 2011
5:02 pm
Saxby has been as sorry a Senator as Jimmy Carter was as a President. If you paid any federal income taxes for the past 10 years, you benefited from Bush’s tax cuts. If you didn’t pay any, why? Maybe you’re part of the problem of our “entitlement” system.
td
July 20th, 2011
5:03 pm
kc
July 20th, 2011
4:56 pm
can we end/stop some of free trade agreements that result in massive job loss?
We can stop the outsourcing of jobs tomorrow if we were not so greedy as a nation. All you have to do in shop for American made only and if enough people did this then these companies would start producing them again in the US.
Pompano
July 20th, 2011
5:06 pm
@td is correct. Means testing = Welfare!
However, by the time these idiots blast away our 401k’s and other retirement benefits all private sector employees (except the Union thugs that cut their special interest deals) will qualify as indigent when we retire.
RetiredSoldier
July 20th, 2011
5:08 pm
well said Bob
RetiredSoldier
July 20th, 2011
5:13 pm
kc-
Where do you put your money? I would bet it’s where it is treated best. That is the driving force behind the loss of jobs overseas. Very simply the money is treated better there. Want the solution, it really is very simple. Adopt the fair tax. All federal taxes except the excise tax are gone, Where do you think business’ will wnat their monety to be? And remember those offshore bank accounts of billions and billions of dollars are parked in. Well the fair tax will bring it all home. Why? Beacause that money will be treated better in the USA than overseas.
yuzeyurbrane
July 20th, 2011
5:14 pm
Cubby and Ghost Rider–
You have been given inaccurate facts re SS. Our FICA taxes go into the SS Trust Fund which has been receiving more funds than paid out since the beginning of the program until this year for the first time. It has accrued a $4.5 trillion surplus. Now, the money has not just sat there. In order to earn money on its surplus, the SS Trust Fund has invested in US Treasury bonds which have been the world’s safest investment, at least until the recent craziness. Others, like large banks, brokerage houses, rich folks and foreign governments (e.g. China has over $2 trillion worth) also own them. So while the SS Trust Fund may not be primarily composed of liquid cash, it is hardly worthless unless the US govt. decides to welch on its legal obligations to Seniors. Granted, the govt. could choose to pay banks or China first and stiff Seniors, as has been proposed in some legislation by some Republican Congressmen and at least 1 Republican Senator, but it is highly unlikely the American people would stand for this.
As I alluded to briefly above, SS benefits have been paid at 100% and totally from each year’s FICA revenues until this year when there was a small difference which was met by interest income on the US Treasury bonds held by the SS Trust Fund. Projections are that revenues plus interest will be enough to pay 100% benefits for at least another 10 years and that revenues, interest and US Treasury Bond redemptions would pay benefits at 100% for at least another 25 years. With minor modifications the SS Trust Fund will be able to pay benefits at 100% for at least another 75 years after that. There are several proposals for minor legislative modifications which would accomplish this goal. They should be considered in the normal legis. process (hearings, votes, etc.) and not at the point of the debt ceiling gun.
Bob
July 20th, 2011
5:16 pm
RetiredSoldier…thanks, but more importantly, thank you for serving our country.
Lynn
July 20th, 2011
5:18 pm
There are a lot of things in the Federal Budget that can be cut easily because they never should have been there in the first place. Just to name a few: $445 million for the Corporation for Public Broadcasting, $17 million for the International Fund for Ireland, $420 million for Legal Services Corporation. $1.565 billion in Amtrak Subsidies, $4.5 billion for Community Development Fund, $7.5 billion I/2 of the Federal Travel Budget, $76 million for the Appalachian Regional Commission, $1.15 billion for Programs under the National and Community Services Act, $250 million for Economic Assistance to Egypt, $1.2 billion savings if it were prohibited to use taxes to fund union activities by federal employees. $900 million to fund Obamacare administrative costs. These are just a few, there are many, many more.
DannyX
July 20th, 2011
5:19 pm
The Tea Party people are crazy and out of touch with America.
A Washington Post poll just released shows a super-majority favor a tax increase on those making more than $250,000.00 a year. 73% of all independents favor a tax increase, 54% of all Republicans favor a tax increase, (they haven’t all gone crazy.) In fact all the polls heavily favor Obama over the Republicans on this issue.
The Tea Party is full of crazy people.
RetiredSoldier
July 20th, 2011
5:20 pm
Thanks Bob, it was a pleasure. Wish I was young enough to have the old rucksack on my back.
RetiredSoldier
July 20th, 2011
5:22 pm
Lynn-
Keep going, no disagreement yet!
RetiredSoldier
July 20th, 2011
5:27 pm
DannyX-
Source of the poll?
Just because a majority of people are in favor of something doesn’t make it right.
I believe I have said this on this blog before, the “tea party” people that helped organize an event where I live were normal every day working class folks fed up with the direction of our government. Crazy? No, well informed, yes.
ray
July 20th, 2011
5:49 pm
There is no greater waste of tax payer money than the salaries given to the tea-bagging GOP that is supposed to be representing Georgia.
The average Georgian has NO representation in the House.
DannyX
July 20th, 2011
5:53 pm
“Source of the poll?
Just because a majority of people are in favor of something doesn’t make it right.”
Source of the poll? Just google “tax poll.” Take your pick, there are plenty of new ones, they all show the same thing, strong support for Obama on the issue, very poor results for Republicans.
Speaking of poor results for Republicans, how is Wisconsin going? Not too good is it? Less than a year in office their governor is at 29% approval. The crazy Tea Party antics created a revolt. Fed up indeed, and doing something about it with recalls.
bulldog
July 20th, 2011
6:13 pm
If Saxby has anything to do with it, watch your back, because that Mexican lover will lie lie!
ray
July 20th, 2011
6:20 pm
Saxby may be the only Republican in this state who hasn’t sold out the country.
Takes stones to raise revenue – just like Ronald Reagan had a pair.
These House maggots pander – they wouldn’t know how to lead if it sat on their face.
The Gang of Six plan, Social Security and other entitlements « World Military Surplus
July 20th, 2011
6:41 pm
[...] on Tuesday, there was Coburn in the members-only briefing of the Senate, endorsing the proposal. military surplus#dd_ajax_float{ background:none repeat scroll 0 0 #FFFFFF; border:1px solid #DDDDDD; float:left; [...]
The Gang of Six plan, Social Security and other entitlements « World Military Surplus
July 20th, 2011
6:41 pm
[...] on Tuesday, there was Coburn in the members-only briefing of the Senate, endorsing the proposal. military surplus#dd_ajax_float{ background:none repeat scroll 0 0 #FFFFFF; border:1px solid #DDDDDD; float:left; [...]
Pompano
July 20th, 2011
6:42 pm
@ray – Saxby seems to be the only GA repub currently selling us out (though his bud Johnny would be quick to pull the trigger as well). Let’s recap… good ol’ Saxby wants to:
> Raise taxes on middle-class home-owners with mortgages. So he wants to pile on the large losses suffered by increasing the cost of homeownership.
> Increase the role of Government regarding health care by eliminating the incentive to actually save and pay your own medical bills.
> Destroy charitable giving. The government should be in charge of all hand-outs!
> Penalize responsible individuals who actually plan for their own retirement in order to make us all dependant on Soc Sec.
> Turn Soc Sec into a pure welfare program
Even Sherman didn’t do this much damage to the state! Saxby is a worthless excuse who would not even be in office had he not run unopposed in the primary.
Ghost Rider
July 20th, 2011
6:49 pm
yuzeyurbrane:
Social Security trust fund solvency is a myth
http://www2.ljworld.com/news/2011/mar/12/social-security-trust-fund-solvency-myth/
The Fake Social Security Solvency Crisis Is Congress’s Fault!
http://neweconomicperspectives.blogspot.com/2011/04/fake-social-security-solvency-crisis-is.html
ray
July 20th, 2011
6:57 pm
Pompano – you should start buying your weed from somebody else.
Just like Bush gave us Obama, you and your moronic interpretation of conservatism will end up giving us decades of liberal leadership.
Shut your pie hole…or maybe you are a liberal?
angie
July 20th, 2011
6:58 pm
We voted and put these people in office and the only way to change is to let them know we don’t like the way things are going and the might be out of representing
Lynn
July 20th, 2011
7:17 pm
The “Deadly Six” is correct – and they WILL NOT BE VOTED FOR AGAIN!! Our politicians should hang their heads in shame – both sides. Keep veterans benefits (you mean they have some – these people who save our a__ __ every day of their lives?), social security in tact, and medicare in tact. Do NOT raise taxes – instead CUT OUT THE PORK BARREL SPENDING – which they ALL DO – and then cut the salaries of each and every politician – especially the DEADLY SIX…….
hl
July 20th, 2011
7:24 pm
Please don’t call Social security and Medicare entitlement programs .. They are set up as insurance programs much the same way that life insurance is. That’s just a nit with me…
I haven’t read the bill so I can’t comment on that yet but good for some congress folks for working together to get us out of this slog. Who would have thought that unfunded tax cuts, medicare prescriptions plans, education spending and two unfunded wars would have caused such a large deficit.
Federal Taxation is the lowest it has been in sixty years and if it paid for itself we’d be at zero percent unemployment. Not all taxation affects unemployment folks. Talk about class warfare. 40 million earned under 24,000 dollars a year and did not pay federal taxes. What lucky duckies. BTW.. that’s a family of four. Yup..class warfare Let’s tax them 100 dollars a year in federal income tax. I don’t have a problem with that but I bet walmart would.
Lynn
July 20th, 2011
7:25 pm
And another thing – if you think Saxby Chambliss and Johnny Isaakson care one flip about the people in the state of Georgia – think again. Can either one of them explain to the public why they stood by for years knowing that mentally ill and retarded were dying, being abused, and suffering in this state? It took the Atlanta Constitution and the Department of Justice to intervene. They – and their Republican co-horts and Governor – stood by, never did one blasted thing, nor make any comment on this subject at all. People DIED, were assaulted and abused – and our fine Senators did nothing!!!! So, from a financial standpoint – do you really think they care about people – when they didn’t even care about our most helpless????? Ask them why the Dept. of Justice had to come here – why did they did nothing themselves and why didn’t they demand investigations into their own state????
hl
July 20th, 2011
7:28 pm
LYNN.. Federal taxes do not pay for defense, social security,veteran benefits, medicare and medicaid. Forget unemployment, after all those folks can beg on the street. President Reagan passed a bill called emtala, look it up.
Lynn
July 20th, 2011
7:36 pm
HL:
It doesn’t matter – you don’t cut VET benefits, Social Security benefits, nor Medicare to pay for the borrowing from Peter to pay Paul they have all done to begin with. Our VETS should be #1 in all of this – have we forgotten we are in a war?? Thousands of these men and women can’t even get services upon their return – our country and politicans should hang their heads in shame !!! As far as Social Security and Medicare is concerned our fine politicans have taken from these funds for years – no doubt to pay for their Pork Barrell spending – well now they can just put it all back…..if Corporate America did this any company would be shut down…
Lynn
July 20th, 2011
7:38 pm
HL:
Bless you – no Social Security and Medicare are “not entitlement programs” – we have paid into this insurance fund – REQUIRED BY LAW – and it is indeed an insurance program – most people will never see what they have paid into it. Good Lord, if someone dies before they reach the age to reap the benefits – well our good ole government just gets to keep it……..
Neil
July 20th, 2011
7:52 pm
I agree, this is just another move at political cover, where non-specific cuts are proposed that are supposed to get implemented years down the road cloud the truth. What we need are IMMEDIATE and SPECIFIC cuts to CURRENT programs. Even if we reduced spending levels to 2008 levels, we could cut more than a TRILLION dollars per year from the budget. What gets lost here is that Obama and his crew have increased the annual defecit by more than a TRILLION dollars per year.
They used the excuse of the recession to foist a so-called “stimulus” that was nothing but pork social spending, and now they are using that higher baseline as the new normal. Their answer is to raise taxes and some of you brain dead class warriors rage on about the “rich” and other talking points. I remember the days when everyone wanted to become rich. That’s what made this country great.
Today, the successful are insulted and called names, while the medicore and lackluster discuss how to spend their money. It’s all about redistribution of wealth and it’s disgusting. The “fair share” not being paid is the fair share from the 49% of wage earners who pay no federal income taxes and demand things from those who pay the lion’s share. Disgusting.
ray
July 20th, 2011
7:55 pm
At least this tea-bag infection ain’t pretending to be Christian. Like Neil, who doesn’t even try to hide the fact that he’s an ungrateful prick.
The Centrist
July 20th, 2011
7:58 pm
I wonder if Lynn has ever looked at just the federal budget summary. If things were so simple, John Sidney “I don’t know much about the economy” McCain would be President.
hl
July 20th, 2011
7:58 pm
Lynn, You lost me. I have paid for term life insurance and guess what I didn’t die. Most companies offer term insurance and health insurance and only if you are sick or die do you reap the benefits. Those are private companies. That’s the way it works. Corporate America actual does this all the time. Social security and medicare are only gone if you continue to vote for people who want to get rid of it.
You are definitely right, the war should have been paid for. I would have been glad to buy war bonds. In the old days before Bush, that’s what happened.
I’m still waiting for those Bush tax cuts to create employment. Look at graphs.. Reagan raised taxes eleven times, Clinton raised taxes..did those tax increases create the jobs that were created probably not. Most studies show taxes do little for job creation.
You just keep listening to Boortz and Fox though and someday the magic fairies will appear to save you.
I don’t know you so this comment is not meant for you, but can someone tell me what libertarian country they would live in. Ayn Rand was lucky because while she preached her magic world she was lucky to have her hospital expenses paid for by the good old USA and medicare.