Posted on 12/30/2012 12:59:24 PM PST by Sub-Driver
‘Major setback’ in fiscal cliff talks By: Manu Raju and John Bresnahan December 30, 2012 12:15 PM EST
Negotiations between Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell suffered a “major setback” after Republicans demanded the inclusion of a new method for calculating entitlement benefits as part of the fiscal cliff package, according to Democrats.
The provision, known as “chained CPI,” is opposed by many liberals because it would result in lower payments for Social Security beneficiaries.
While President Barack Obama has backed the provision as part of a major deficit package, Democrats are objecting to including this as part of the negotiations on a scaled-down fiscal cliff deal. They say they’ve already given ground on other issues, including raising the threshold for new taxes to around $400,000 annually as well as showing flexibility on estate taxes, sources said.
But Republicans are insisting on the chained CPI provision in exchange for raising taxes.
On the Senate floor, Reid ruled out any cuts to Social Security as part of any agreement to avert the fiscal cliff.
(Excerpt) Read more at politico.com ...
CPI is already one of the most heavily cooked numbers on the planet, and the Republicans say they want to tweak it to cook the numbers even more, resulting in less SS for people who spent their lives paying into it.
But you may be in the camp that considers SS “welfare.”
The way it is going to work out unless the Republicans totally surrender and gives them more than they asked for is the Democrats have no intention of giving an inch. What Reid and Obama want is exactly what Obama authorized Reid to place on the floor and they will allow no deviation. The MSM will fall all over Obama singing his praises. That’s been the plan from the start.
Yeah...and when Obamacare kicks in life expectancy is going back to the original 65.
Resulting in a big increase in SS payments.
Let it go over the cliff. All these jerks who voted for Obama because he promised to raise the taxes on the top 2% can start paying their fair share now. Raise everyone’s taxes, cut the spending and go on down the road. Time for the 47% to step up to the plate.
Zactly. It is a diversion.
As of 2011, the earliest age for Social Security retirement benefits is 62, but those opting to receive benefits at this age will see benefits reduced by a fraction of a percent for every month before the full retirement age. For those born before 1943, the full retirement age is 65. For those born between 1943 and 1959, the full retirement age is 66, and those born after 1960 receive full retirement benefits at 67.
Later Retirement
Those delaying taking Social Security benefits until after the full retirement age for their particular date of birth may increase benefits by a monthly percentage for each month until reaching age 70.
This regime did not put through any COLA increases for SS recipients the first two years. The last two increases have been eaten up by Medicare increases.
This is something nobama brought up. Now the pubs are for it and the Dems are again it? Welcome to bizarro world.
Besides, how much lower than 1.7% do they want to go? Much lower and they might as well forget about it.
Social security didn’t start out as a welfare program but it has been moving in that direction over the years. The system cannot sustain the millions of people claiming disability who paid little or nothing into the system but will collect a lifetime of benefits. It is also not sustainable when the average person collects 4X as much as they pay into the plan. These problems will only grow bigger as our workforce continues to shrink from obama-nomics and the pool of retirees grows from baby boomers retiring. I don’t want anybody to get less then what they are entitled to but something has to change.
If I'd been allowed to invest what they took from me in FICA, I'd *have* 4X as much as I paid in. It's the miracle of compounded interest.
Good FReepers have written to me (with I assume straight faces) that SS needs to be means tested, because it's "not fair Bill Gates can collect SS." Bullcarp. If he paid in as I did, he deserves payout. Even alleged conservatives have fallen for the "Well, SS turned into welfare, so we need to screw good people over because they're just filthy, grubbing welfare recipients" leftist propaganda.
Bottom line: If by some miracle your 401K survives to your retirement, your Social Security will be reduced as punishment for scrimping and saving your whole life.
Hello newbie...
...I disagree. We worked under a contract agreement.That agreement had the age at 66 for full benefits. You shall not breach that agreement....
check your social security statement, there is no contract Congress can and does change the law anytime it wants look at WEP. SS is a ponzi scheme that should have Congress in jail, but they write the rules until such time as the people take back the country or we have honest politicians (LOL) We also gave the government the right to govern us with certain exceptions spelled out in the Constitution, how is that working out? They breached it so what are we going to do?
it is no different than any other government payments to individuals. ‘Paid into...’ the general fund like everything else. How long have you paid into food stamps? or Planned Parenthood?
it is no different than any other government payments to individuals. ‘Paid into...’ the general fund like everything else. How long have you paid into food stamps? or Planned Parenthood?
Nonsense. It was a Ponzi scheme from day one.
Something has happened. The DOW Industrial futures went from -226 an hour ago to +31 as of this posting.
http://www.bloomberg.com/markets/stocks/futures/
Let me guess, GOP caved.
Something has happened...
Republicans caved.
Okie Dokie. I thought I remembered you correctly. You’re one of the a-holes who thinks people who payed into the SS system and are expecting to get paid back are welfare recipients.
lol. very simplistic. you pay taxes expecting to get it back?
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