We know that Republicans are on the march to slash even more spending from government by cutting back benefits in social programs, while demanding that their tax cuts for the wealthy not be offset. What this has the effect of is working to drown government in a bathtub, as Grover Norquist so famously said. Also, in not raising the debt ceiling as a part of the tax cut deal, we are looking at further hostage situations in which Republicans will demand major concessions from President Obama and Democrats in Congress---like cutting Social Security, raising the retirement age which is a benefit cut, and means-testing Social Security, which turns it into a welfare program. The payroll tax cut is a stalking horse, as I've written about here before, to delegitimize Social Security by tying it to the deficit.
It's why it's so crucial that you call your Senators today to urge them to vote against this tax cut deal and to filibuster it if they can!
CALL YOUR SENATORS TO TELL THEM TO VOTE AGAINST THE BAILOUT OF THE WEALTHY TODAY!
Republicans have wanted to cut Social Security ever since it came into existence, and with this payroll tax holiday, they will finally have a wedge to accomplish their goal, promising lower taxes now in exchange for reduced benefits later.
It's true that Republicans wouldn't hold all the cards in such a debate. Democrats could point out that you can also lower payroll tax rates without undermining the Social Security system's fiscal health by replacing the lost revenues with the elimination of the cap on payroll tax contributions. Lifting the cap would be a good idea and it would make the system more progressive. And if Democrats were to make continuing the payroll tax holiday contingent on lifting the cap, they'd have a powerful and effective argument.
But the problem is that it's a pipe dream to expect Democrats to make that argument without caving to the GOP's demands. All the proof you need of that is contained in the tax cut debate, where by President Obama's own admission, the GOP's strategy of hostage taking was effective. And that doesn't even take into account that next year, there will be a Republican House and smaller Democratic majority in the Senate.
Senator Harkin recognizes the major problem that the payroll tax holiday presents for our seniors and future generations. Tell him to vote NO on the tax cut deal, and for him to urge other Senators to vote NO as well!
CALL SENATOR HARKIN HERE AT 202-224-3254
"That’s another thing that I really disagree with the president on...this two percent cut in the payroll tax that goes to the Social Security trust fund. The last thing that we need to do is invade the Social Security trust fund to provide for things right now for people’s living," Harkin said in little-noted comments Wednesday on C-SPAN's "Washington Journal." "They’re going to make up that by it taking out of the general fund, in other words: debt. They’re going to put debt on our kids head to pay for that. That bothers me. That bothers me a great deal."
In the interview, Harkin, who said he was undecided about how he'd vote on the tax deal, suggested bolstering the Social Security fund by lifting the $106,800 cap on earnings subject to Social Security tax. That would cause high earners to pay the payroll tax on every dollar of their income. But he again lit into the White House proposal to drop the tax rate temporarily. "It bothers me that we’re now going to establish a principle that we can take money out of the Social Security trust fund and replace it with debt...I’m very bothered by that. I think there should have been a different way of doing it than that," he said.
Also, Rep. Jerrod Nadler said that Howard Dean was right in pointing out the danger that the payroll tax holiday presents to Social Security down the road:
"Governor Dean is entirely right about the long-term risk to Social Security here," said Nadler. "Now this one time, $120 billion tax cut in social security taxes will be paid for out of the general fund. But that, for the first time, starts getting the general fund to subsidize social security for $120 billion a year, and brings Social Security into the deficit debate, which greatly undercuts the political support to avoid eviscerating Social Security a few years down the road."
So, if you really want to save Social Security, and prevent the Bush tax cuts for the wealthy from adding to the deficit, please CALL your Senators below, and spread the word!
- CALL YOUR SENATORS TO TELL THEM TO VOTE AGAINST THE BAILOUT OF THE WEALTHY TODAY!
- Please click the Facebook "like" button on top to spread the word to as many people you can on Facebook! Also tweet this as well!
- Please RECOMMEND this diary so people can see it and take action today!
WATCH THE DEBATE/VOTE ON C-SPAN!