Art offers his perspective as a movement progressive activist.
As Washington delves further into detached madness we learn of new facts about the Gang of Six plan. They aim to alter Social Security by abolishing COLA and thus reduce benefits folks get incrementally as people get older.
Congressman DeFazio went to the House floor to explain how the Gangsters of Six plan to screw the poor, the elderly, the disabled, our veterans and middle class while letting the rich off the hook:
Note what he said here:
…there’s this other little impact they’re not mentioning. If you’re earning $20,000 a year, the tax brackets get adjusted every year. Well, they wouldn’t get adjusted so much any more under the chained CPI. So someone who earns $20,000 a year over ten years would see their taxes go up 14 percent. But, guess what? For the rich people, ha. You earn $500,000 a year, you’re already at the top, their taxes will only go up 0.3 percent. Three-tenths of one percent. Fourteen percent for someone who earns $20,000 a year. Point three percent for someone who earns $500,000.[...]
All of this, all combined of this great Gang of Six would save $4 trillion over ten years. That is, seniors will pay more, working people will pay more, veterans will pay more. Rich people? Nah. Not so much. But it would save $4 trillion.
Guess what. If we let all the Bush tax cuts expire the end of next year, all of them and the stupid Social Security tax holiday, that would be $5 trillion over ten years and we wouldn’t have cut Social Security. We wouldn’t have cut veterans’ benefits. We wouldn’t have asked low-income and middle-income people to pay more in taxes. Now does that make more sense? I think so…
What a scheme. The devil himself must revel in it. Immoral.
Daniel Marans from Strengthen Social Security highlights new reports which show how very bad these changes in SS could be on taxpayers:
A recent report by the Congress’s Joint Committee on Taxation… shows that the revenue increases that would result from the chained CPI should also give progressives pause. The report says that the chained CPI would greatly increase the tax burden of low- and moderate-income workers, while barely affecting millionaires.
For example, if the chained CPI were enacted in December 2012, in 2021 the tax liability of low-income workers with incomes between $10,000 and $20,000 would increase by 14.5 percent, while those with incomes of $1 million and above would see only a 0.1% increase, according to the report.
The chained CPI would raise revenues by slowing the rates at which tax brackets and deductions rise….
So ending COLA will affect not just folks on SS or veterans pay. It will impact millions of Americans’ tax rates, especially the working class:
Mike Hauswirth, tax policy analyst for the Democratic staff of the House Ways and Means Committee, explained why workers without any income tax burden could still see their effective tax liability increase.
Under the chained CPI, low-income tax credits such as the Earned Income Tax Credit (EITC), the Child Tax Credit and the Saver’s Credit would phase out for many workers at the bottom of the earnings distribution who currently receive them in full.
That is because the low-income tax credits in question would be indexed to the chained CPI. If workers’ income grew faster than the chained CPI, then they would outgrow eligibility for the tax credits.
So with these changes workers will find they won’t qualify for tax credits they used to get. Four trillion will be raised- off the backs of blue collar and poor Americans. Nauseating.
The thought of these crooks in congress trying to cut my SSI benefits all while hiking taxes on working class Americans and ensuring benefits from the safety net will be cut for everyone else is something that brings me to tears. Fight we must must.
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