The White House said it would veto the current plan offered by House GOP leaders to raise tax rates only on income above $1 million, while House Speaker John Boehner tried to build momentum for the Republican proposal.
So, maybe the plan-by both Democrats and Republicans is to run out the clock and do nothing. The back story is that both parties see the need to raise middle class taxes (I talked about this last month). Social Security is in such a mess that by most accounts, the only way to maintain the illusion of solvency is to raise the payroll tax of the middle class to pre-Bush rates.
Neither side will tell you the truth because the blame runs in all directions. The GOP and Democrats through the years have systematically chipped away at American retirement. The SS shell game reached new levels after 9-11 for various reasons but the primary culprit was Wall Street and the GOP’s failure to enforce SEC regulations.
One GOP insider told me some 10 years ago that the Bush administration’s mentality seemed to be that it’s only illegal if you get caught and you can’t get caught if nobody’s looking.
Despite its success, Social Security faces an unprecedented attack from Wall Street, the Republican Party and a few Democrats. If the American people are not prepared to fight back, the dismantling of Social Security could begin in the very near future.
Rep. Paul D. Ryan, the new chairman of the House Budget Committee, wants to partially privatize Social Security, lower its cost-of-living adjustments and drastically cut benefits. And there are threats on other fronts. A deficit-reduction commission established by President Obama called for increasing the retirement age to 69, reducing cost-of-living adjustments for today’s retirees and deeply reducing benefits for future retirees who make as little as $42,000 a year.
We must do everything we can to defend Social Security and protect the needs of tens of millions of working families. With this in mind, Sen. Bernie Sanders formed the Defend Social Security Caucus.
Plan C (the do nothing plan) seems to be where we’re headed. By some accounts, this was the favored plan from the very beginning. There really is no fiscal cliff-the tax hikes and spending cuts that are scheduled to go into effect on January 01, 2013 were put in place for a reason: because politicians intended this to happen.