Government Takeover of Retirement Assets

Most Get Social Security Solvency Wrong

It's a myth that Social Security is insolvent. But after this tax package is signed into law, it will be.

December 14, 2010

PRNewswire - Question from Robert Weiner, former Chief of Staff, House Aging Committee, and response by Rep. Steny Hoyer, House Majority Leader, National Press Club Newsmaker, December 13, 2010:

Alan Bjerga, moderator: For the first question we will assume the prerogative of the organizer of the event, Mr. Robert Weiner.

Weiner: Steny, you mentioned the Fiscal Commission's provocative report. But they and many [others] don't acknowledge that Social Security is solvent. You remember I was the Chief of Staff of the House Aging Committee. Social Security is solvent and paid for through 2037, and 25% short at the most even after that. It doesn't contribute a dime to the deficit, even on paper.

So it isn't anything that the Deficit Commission can take advantage of, other than taking money from it. How did Social Security become the symbol of saving the deficit and doing something, instead of the real costs of Iraq, Afghanistan, and tax breaks for the rich? And will the Democrats, and Congress as a whole, resist the sound bite to save the budget by cutting Social Security?

Hoyer: First of all, Social Security ought not to be looked at as a way to reduce the deficit and your point is well taken. However, at the same time we need to make sure that Social Security is not only solvent through 2037, but for future generations. Therefore, we must address its solvency within its own construct. There are many ways to do that. Frankly Social Security is much easier to deal with than Medicare and Medicaid, which are a very much greater challenge in terms of cost.

Now you mention as well the expenditures we have made without paying for them. We have fought two wars that have incurred about a trillion dollars in expenses -- none paid for, all borrowed money. We need to make sure we pay for what we buy. Therefore, we included in our budget a statutory pay-go. That is a return to what we did in the 90s, where we disciplined ourselves in expenditures. We need to continue to do that. In the short term in an economic downturn you cannot do that because you need to give stimulus to the economy, and you can't depress it at the same time. Therefore, you need to incur debt at times of economic stress. However, we incurred great deficits at the time of economic well-being. That has been the problem we confront today.

But to your point -- Social Security is clearly something the Democrats are going to make sure is in place, is solvent, is there for future generations, will not be privatized, and will be as generations have had it to rely on in their retirement.

"House Majority Leader Steny Hoyer of Maryland said in June that Congress should consider raising the retirement age and providing lower Social Security and Medicare benefits to wealthier beneficiaries." - Democratic Policy Group Would Limit COLA Increases and Cut Social Security for Top Earners in U.S., Bloomberg, November 30, 2010

Steny Hoyer Supports Raising the Social Security Retirement Age

July 7, 2010

Washington Independent - According to Brian Beutler at Talking Points Memo, Republicans and — new development here — Democrats are getting behind the idea of slowly raising the retirement age.

The change would go into effect only for workers who are middle-aged or younger now, all as part of a plan to reduce the national debt. Currently, workers can start receiving benefits as early as 62, with full benefits kicking in between 65 and 67, depending on the worker’s year of birth. The average lifespan is around 79 years.

Beutler reports that House Speaker Nancy Pelosi (D-Calif.) is not on board, but many other Democrats are coming around to it:

The strongest backer of this plan is House Minority Leader John Boehner, who recently told a Pennsylvania newspaper, “I think raising the retirement age going out 20 years so you’re not affecting anyone close to retirement, and eventually getting the retirement age to 70 is a step that needs to be taken.”

There’s no big surprise there. The Republican minority in the House doesn’t have a lot of power, but if Boehner had his druthers, he might well take things quite a bit further. He’s the one, after all, who won’t take Social Security privatization off the table if Republicans retake the House.

It’s the Democrats who have progressives feeling queasy. House Majority Leader Steny Hoyer explicitly put the idea on the table as well in a speech last month. “We should consider a higher retirement age or one pegged to lifespan,” Hoyer said.

One way or another, this looks to be a massive issue in the next year, as Congress looks to the Obama administration’s deficit commission, the Bipartisan Commission on Fiscal Responsibility and Reform, for debt and deficit solutions.

Commissioners seem likely to recommend raising the retirement age, cutting benefits for wealthier Americans or expanding the Social Security tax — or some combination thereof. If 14 of 18 commissioners agree on the change, Congress has promised to vote on it. The AARP, MoveOn.org and the Campaign for America’s Future, among other organizations, have said they will oppose members of Congress who vote for certain changes to Social Security.

NWO Crony House Dem Steny Hoyer Says "Urgency" of Tax Vote Clear, House Dems Will Probably Pass Legislation

If Steny Hoyer supports it, it can't be a good thing.

December 14, 2010

CBS News - House Majority Leader Steny Hoyer said in a press briefing on Tuesday that he expects the House to consider tax plan by the end of the week, and added that, despite House Democrats' initial protests to the compromise, he believes the legislation will ultimately pass in the chamber.

Noting the Senate's recent support for the legislation - which they endorsed by 83 to 15 in a Monday night procedural vote - Hoyer acknowledged that "obviously there is strong support for moving ahead," which he attributed to "a very keen sense that allowing middle income taxes to go up on January 1 will not be good for the economy."

"I think what that vote reflects is the urgency that members of all spectrums feel about the middle income tax cut and unemployment insurance," Hoyer continued, adding, "I think, frankly, that ultimately we will pass legislation."

Hoyer said House Democrats "believe that there are provisions within the bill which are very, very helpful to growing the economy," but added that doubts remained about the Republican-favored language regarding the estate tax.

"There continues to be great concern about the treatment of estates," Hoyer said.

The Maryland Democrat did not say whether or not House Democrats would consider changing the estate tax, but indicated that the House was likely to vote on an amendment to the estate tax provision.

Hoyer also refrained from saying what changes he might lobby for in the bill.

"I'm going to advocate what I think gives the House the ability to reflect its view," he said. "And I think the House feels that they want to take a position on at least one of the two items they believe are not productive to growing the economy and harm the deficit."

However, Senate Minority Leader McConnell said today the tax cut agreement "is not subject to being reopened" and urged the House to "simply pass the Senate bill" and send it to the White House for the president's signature.

Hoyer said he didn't think it was necessary for the president to meet with House Democrats on the matter.

"I think the president has met with a lot of people in the caucus on this issue," Hoyer said. "I think the president's been very clear on the fact that he is uncomfortable with certain parts of this bill."

The House Democratic Caucus will meet tonight to discuss the path forward on tax cuts, and that the Rules Committee will do the same within the next two days.

Update: House Democrats will consider a resolution Tuesday night calling for the tax cuts in the deal to be extended for the same period of time as unemployment insurance, the Huffington Post reports.