President Obama appointed 18 people to come up with suggestions for lowering the deficit. Yesterday, when Pres. Obama is outside of the country and will be until Sunday, they released their suggestions. I won’t go into detail about all of the things, but will mention two in particular that have me up in arms:
1. Social Security – raise the retirement age and lower the benefits
I am so mad that they are using SS as part of the reason for the budget problems. The SS trust funds would have had enough money in them til at least 2035, but the funds have been raided so that to honor the commitments made, they have to pay interest to get the money to pay the SS payments due. SS RULES did NOT cause the shortfall; taking the money and putting it into general revenue to pay other bills, like the defense budget, etc did.
It’s like me having an acct. in a bank, and the bank just takes that money for their own use, and then says I can’t manage my money as there’s nothing in the acct. It is not my fault, the money isn’t there, and I shouldn’t be blamed.
Social Security was set up to be self-funded and has been all along, and should not even be discussed with the rest of the federal budget that is financed by federal taxes. FICA taxes fund Social Security benefits; totally separate budget that pays out benefits and pays the salaries of the SS workers. FDR would roll over in his grave if he knew of this proposal and how his program is being maligned.
The SS Commission and many others are lying about the true reason they want to change the rules. They just want it to cut down on the federal deficit. It’s easier to blame entitlements than to focus on other budget items; ie, the huge defense budget for example that is larger than all other countries combined.
2. Taxes – cut the top rate from 35% to 23% for personal income tax, and corporate tax rate from 35% to 26%
I don’t need to go into why this isn’t the way to go, because the last 8 yrs. of the lower rate put in by Pres. Bush hardly made a dent in creating jobs, and the billions less that came into the Treasury certainly didn’t help with the deficit increase that came about in his administration.
In the 50’s when Dwight Eisenhower was president, the top tax rate was 90%! Remember how few women had to work back then? Of course our world got a lot more complicated, but it just goes to show, that there was a much higher rate that still got the job done.
My suggestion is that we all contact our congress members and Pres. Obama, and make sure they know how we stand on these two things at least, and whatever you dislike/like about the other points brought out. We can’t let this commission get away with this.