On May 10th, 2011, Senate Finance Committee Chairman Max Baucus (D. MT) clearly stated that Social Security doesn't contribute to the deficit:
http://www.advisorone.com/...
“Social Security benefits are financed only through payroll taxes and the Trust Fund,” Baucus (left) said during a hearing held by his committee entitled “Perspectives on Deficit Reduction: Social Security.” Social Security, he continued, “is not responsible for the deficits we face in the general fund today. Therefore, I believe Social Security should not be part of our efforts to reduce those deficits.” - Advisor One, 5/10/11
Baucus also stated that by law, Social Security must remain separated from the rest of the Federal budget and the program cannot borrow money from the general Federal budget. Social Security advocates who were at this hearing agreed with Baucus' statements:
Nancy Altman, co-Chair of the Strengthen Social Security Campaign and Chair of the Pension Rights Center, agreed during her testimony, stating that “the law is clear, Social Security shall not be counted for purposes of the federal budget.” She said that cutting Social Security benefits would not have any impact on efforts to reduce the nation’s $14.3 trillion deficit.
Charles Blahous, research fellow at the Hoover Institute in Washington, backed up Altman’s statement, stating “I do agree with that.”
James Roosevelt, president and CEO of Tufts Health Plan, and President Roosevelt’s grandson, countered that “the truth about Social Security is that it has contributed to the financial wellbeing of almost every American family.” The truth about Social Security, he continued, “is that it is solvent today because it has a dedicated income stream that covers its costs and is actuarially sound; and more importantly, with minor adjustment it will remain solvent for decades to come.” - Advisor One, 5/10/11
I called Senator Baucus' office today to remind him of that statement he made and if he still stands by what he said last year. His staffer assured me he does and it sounds like he won't support a Chained CPI but you should keep the pressure on him too. When a Democrat who a lot of people here don't like, especially that Chairman of a powerful committee, says what we've been saying, that should be a sign for President Obama and Leader Pelosi to not advocate a Chained CPI as part of a budget negotiation. I recommend you call Baucus and remind him of what he said last year and stick by it. No Social Security cuts. You can contact Baucus here:
(202) 224-2651
And if you're a Montana resident, you can call him on any one of his local offices to urge him no cuts to Social Security:
Billings: (406) 657-6790
Bozeman: (406) 586-6104
Butte: (406) 782-8700
Glendive: (406) 365-7002
Great Falls: (406) 761-1574
Helena: (406) 449-5480
Kalispell: (406) 756-1150
Missoula: (406) 329-3123
While you're at it, give Pelosi a call and tell her that a Chained CPI is indeed a cut and would hurt seniors, veterans and the middle-class:
(202) 225-4965
San Francisco: (415) 556-4862