Advocacy / Government Watch

AMAC Condemns Bill to Raise Social Security Taxes

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WASHINGTON, DC, Mar 21 — Blasting  Congressional Democrats  for offering a bill to hike Social Security taxes and cut benefits,  Dan Weber, president of the Association of Mature American Citizens, called the proposal “just more income confiscation that does little to solve the financial crisis older Americans face when they retire.”

Weber said that on Friday over 50 Democrats cosponsored a bill that would hike payroll taxes for both employees and employers retroactive to January 1, 2015.  “Similar to the way Obamacare was released, there were no public hearings preceding the introduction of the bill.”

“At a time when our economy is suffering and especially the young and the elderly are being hurt,” Weber added, “it makes no sense to tax workers more or cut benefits.”

“Just last week Senator Sanders (D-VT) said Social Security is not in financial trouble and that if someone says it is, ‘look them in the eye and say they are lying.’  Now that his own party wants to raise taxes to solve the Social Security problem, it’s Senator Sanders who has the credibility problem.”

In addition to the tax increase, the bill (HR 1391) would change the CPI index used to calculate annual increases to the CPI-E index, which would reduce the annual increases for all recipients based on the last 5 years of experience.  It would also impose a further tax increase on “excess earnings” for higher income earners and new calculations would be used to figure monthly benefits for new retirees.

Meanwhile, the Trustees Annual Report says that legislation action must be taken to assure benefits are not cut, otherwise anyone on Social Security disability will suffer a 20% reduction in their checks at the end of 2016.

“The Democrats would take money from the Old Age Trust Fund to shore up the disability fund but, by itself, it would further weaken the Old Age Fund which is currently paying out 60 billion dollars a year more than it is taking in.”

Weber noted that two weeks ago AMAC held a Social Security Working Group meeting with members of Congress where the problem was discussed and solutions were proposed.   He said that his organization proposed a bill that would guarantee Social Security without raising taxes, while adding a companion savings account (called an Early Retirement Account, ERA) to allow workers to have additional money at retirement.

“We have got to stop hitting workers with more taxes, this has turned into income confiscation”, Weber concluded.

NOTE TO EDITORS: Dan Weber is available for telephone interviews on this issue.  Editors/reporters may contact John Grimaldi at 917-846-8485 or [email protected] to set up a call.

ABOUT AMAC

The Association of Mature American Citizens [http://www.amac.us] is a vibrant, vital and conservative alternative to those organizations, such as AARP, that dominate the choices for mature Americans who want a say in the future of the nation.  Where those other organizations may boast of their power to set the agendas for their memberships, AMAC takes its marching orders from its members.  We act and speak on their behalf, protecting their interests, and offering a conservative insight on how to best solve the problems they face today.  Live long and make a difference by joining us today at http://amac.us/join-amac.

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Frank
6 years ago

Publish the names of all fifty of these democrat cosponsors and make sure that senior groups all over the country know who they are. I seriously doubt that they will be elected the next time they run.

Deep Water
6 years ago

It is not the raising of social security taxes that is the problem but the putting the monies collected into the general fund. If the monies collected during it’s inception were kept in the fund and in an interest bearing account designated for the SS fund, the system would be in the black. The Fed should not be able to touch the money even if it is promised to be refunded to the SS fund.

Ivan Berry
6 years ago

Listen to PAULE. Investment from income not taxed, but spending taxed. Go figger? What next? Tax exempt organizations, Trusts, Foundations, etc. would only be taxed for purchases, allowing the wealthy to divert income without purchase of taxable products.
As proposed, the Fair Tax would tax at a higher percentage of the middle class–just what the socialists want.
Any credit transactions would be taxed as though that money had been earned, but no current income had been used.
The Fair Tax would make it attractive to involve purchases in an underground or black market economy to avoid paying the tax. Cash transactions would likely increase without record.
While depending on spending to generate revenue, it would also discourage that spending and divert much of the wealthys’ income into investments not taxed, thus making the burden still more upon the middle class who must spend most of their income just to get by.
And don’t forget Mary’s DC’vers. The proposed tax would be”inclusive” and not “exclusive” as we currently calculate. This means that the tax would be greater than policy states relative to unit cost.
Anyway, it isn’t taxing that is the greatest problem. It’s spending.
To cut SS while increasing taxes is what you have been warned about. It’s the method to make everyone dependant so that later on (maybe beginning now) the rug can be pulled out from under us. Once everyone is helpless and dependant on government they can have their way with us. Government pimps for the masses of us addicted.

Michael Weissman
6 years ago

Bernie sanders isn’t a Democrat. Get your facts straight

Everette Burk
6 years ago

With the Fair Tax SS taxes, income tax, medicare tax all disappear. Consumption on NEW goods are taxed to the retail buyer, no tax on used items. NO IRS, no estate tax.

People with higher incomes would pay more in taxes than those with lower incomes, because people with lower incomes do not generally buy new cars, or new houses. Also those who have avoided paying, like black market, drug dealers, etc, would get to pay in as well. Go to fairtax.org

PaulE
6 years ago
Reply to  Everette Burk

Lets do a little thought experiment Everette. Since the fair tax would supposedly ONLY apply to anything NEW, and thus there would be a powerful, artificially created tax incentive for people to buy only USED everything, what happens to all the companies and the associated JOBS now in existence in THIS COUNTRY that produce NEW products such as computers, washers, dryers, stoves, refrigerators, lawn mowers, any power tools for home repair or re-modeling, shoes, clothes etc., etc.or any of the companies here that are parts or material suppliers to all these companies? With consumer demand in this country artificially skewed towards only USED everything under the fair tax, all those companies would sell significantly less and thus need far fewer workers. So what do we do with all these additional people that will be thrown out of work in a country with over 92 million already unemployed and a real unemployment rate over 11 percent (U6 number)? Do we sign them up for job re-training in jobs that will never be created, because everyone is only buying used? Do we add them to the Social Security Disability roles and drain Social Security even faster, when their unemployment runs out like what has been happening the last four or five years? Do we sign them up for welfare, because “It’s the right thing to do”?

I get the allure of the fair tax to a lot of people. However, you have to look at how its effects would ripple through the economy in ways that most people don’t think about and the people pushing this solution aren’t going to bring up. Just something to think about.

Laurence Fitzgerald
6 years ago
Reply to  PaulE

Paule,

The tax wouldn’t even begin to overcome the effect marketing has had in stigmatizing used goods as compared to new goods. Marketing artificially inflates the cost of goods, so that companies look to cut expenses in other areas, like labor and materials, which has led to the rise of China as an economic power and the fall of US manufacturing. The tax would incentivize buying long lasting better made goods which have resale value, and could reinvigorate heavy manufacturing in the US.

PaulE
6 years ago

Laurence,

How would a tax environment that incentivizes buying used or new lead to a the reinvigoration of manufacturing new anything?

PaulE
6 years ago

How would a tax environment that incentivizes buying used over new lead to a the reinvigoration of manufacturing new anything?

PaulE
6 years ago

Standard Democrat politics. Raise the tax rate and lower the future payout rate to seniors. It’s the Progressive way. As for Bernie Sander, what do you expect from a proud and admitted Socialist, who thinks Obama isn’t moving the country to the left fast enough?

jim
6 years ago

do not fix the budget on the backs of us seniors social security taxes should rise so the working people today can retire one day the retires cannot pay ss taxes only the working people can PLEASE NEVER BE AFRAID TO PAY TAXES EVERY ONE WANTS SOMETHING FOR NOTHING THE RICH WANT RICHER at the cost of working people an RETIRES WEDONOT WANT CUTS IN S S OR MEDICARE MAYBE CUT DOWN ON THE PRISON POPULATION AN HIGHLY PAID PRISON GUARDS AN STAFF GIVE THE NON VIOLENT PEOPLE AN EARLY OUT LAYOFF GUARDS AN STAFF thank you jim

Tom
6 years ago
Reply to  jim

Please someone say exactly how the rich get richer on the “cost of the working people”?

Landy Johnson
6 years ago

As of writing this, according to THOMAS, there is no HR 1391 in the current session. Please provide the correct number.

Landy Johnson
6 years ago
Reply to  Landy Johnson

Please Disregard (or admin: feel free to delete please)…

Alice
6 years ago

You don’t need to raise SS taxes. The American family/individuals pay enough to the government. Learn how to spend with the limits you have. I live on 1200 a month, could you?

Betty Labine
6 years ago
Reply to  Alice

Where in the world do you live? Rent, food, etc. all on $1200? Magic! Everyone in this country should be provided with the same retirement benefits – medical care. Put congress on Medicare.

Sovereign Mary
6 years ago

Raising the tax on Social Security would not in any way lower this sovereign nation’s $18 Trillion is unsustainable debt. All that it will likely result in is more blatant and bloated costly spending by the DC’vers through the confiscation of the much needed funds of the senior citizens.

The seniors in Michigan are already getting more confiscating taxes bestowed on them since our Gov. Snyder got his promoted tax on their pensions.

Ivan Berry
6 years ago
Reply to  Sovereign Mary

Mary, did you coin “DC’vers” or borrow it? That’s a great handle to put on Washington insiders. I believe ridicule to be one of the most effective tools in the conservatives’ quiver, but seldom used. Thanks.

James Richardson Sr
6 years ago

This will hurt millions of lower middle income citizens who are struggling already. Anyone who supports is very out of touch with the reality of the family economics of the American people. Congress seems to let us down at at every turn of events. Cut waste and corruption and millions can live better lives. Limited government and lower taxes. When do we get to see the election promises made come to fruition?

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