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Social Security and Medicare are not part of the budget!!!


Martin County Democrats

Social Security and Medicare are not part of the budget!!!
Social Security and Medicare are not part of the budget!!!

Repeat that over and over every time that you hear about cuts to Social Security and Medicare to Balance the budget.

There is no reason why people stop contributing to SS and Medicare at $106,800 each year. The people are not the ones who are raising the stink about raising the amount of SS and Medicare contribution limit. It is the corporations who have to match funds.

For years, SS and Medicare were not mixed in with the budget numbers, but then Presidents and Congress got smart and realized that they could cut taxes for the rich and still not run a huge (apparent) deficit if they commingled the SS and Medicare funds with the "General Fund".

Under Reagan, the top tax rates were cut to 50% from 70% (LBJ) and Ike's 90%.
And the debt soared, but was not realistically reported, because the general fund borrowed from the SS fund. Everyone but Senator Daniel Patrick Moynihan looked the other way lest they make enemies of the corporations and the wealthy. Now that the SS fund is not able to lend money to the general fund (to keep down taxes for the rich), the future SS and Medicare beneficiaries are slated to be punished because the SS fund was robbed by Presidents and Congresses without the intestinal fortitude to tax enough to cover what they spent.

Regarding High Taxes; We do not have High Taxes at this time. When Bill Clinton was President and the economy was humming, we had a maximum tax rate of 39.6%. When Ronald Reagan was President and the economy was humming, we had a maximum tax rate of 50%. Under LBJ, the top tax rate was 70% and when Ike (General Eisenhower) was President and the economy was humming, we had a maximum tax rate of 90%.
When George W. Bu$h became President, his Republican Congress cut the top tax rate to 35% and made other changes to the tax code, and those changes plus the failure to enforce even the minimal banking regulations still on the books, caused the Great Recession of 2008. We still have the 35% Bu$h tax rates in effects and President Obama wants allow those rates to go back to where they were under Clinton for the highest money grossing people (top 2%), but to stay at their present level for everyone else.

And then there is the problem that many of the richest people in America don't even pay tax based on the highest tax rates. Money that makes money is taxed at 15% capital gains tax instead of the 35% tax rate, so most billionaires pay at the same rates as a family of four making $60,000 per year. Warren Buffet said that he paid at a lower effective tax rate than his secretary and she made $40,000 per year while he made Billions.

The budget commission wants to close some of those loop holes, but wants to cut the top tax rate to 26%. Working people will have to work more years, get less SS benefits and less from Medicare, while the rich will see their rates cut again. The burden of balancing the budget will be 75% on the backs of working people through spending cuts and 25% on taxing the people who already have more money than they could spend in generations. Does that sound fair to you? Would it sound fair to the TEA Party if they were really the voice of the people? Which people?

FreddieVee


(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Martin County Democratic Executive Committee has no affiliation whatsoever with the originator of this article nor is Martin County Democratic Executive Committee endorsed or sponsored by the originator.)


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