Medicare

Push for a 2016 COLA despite the law – Social Security Emerges as Campaign Issue – US News

Hey, I’m all for a raise in income, including mine.  I’m one of those lucky retirees who will have his Medicare premium skyrocket and net Social Security payment go down in 2016.  Whoopee‼️

What’s wrong with ignoring the law instead of fixing it? Why have any concern over the cost of an artificial COLA and the compounding impact in the years ahead? Just ignore the ever-growing unfunded liability of Social Security (and Medicare for that matter). Consequences? What consequences, it’s not like we haven’t shifted taxes and liabilities to younger generations before. 😎

If there is a flaw in the COLA formula (and there is an argument to be made), fix it and pay for it. And just for fun, we may want to actually fix the entire Social Security system. While this blog post is mostly about Democrats, Republicans are not exempt from this  pandering for senior votes and supporting a COLA in any case.

imageYou can make a case under any circumstances to help one group or another, it all sounds empathetic, it all is desirable if there were not limits on resources. Why are we seniors who have had a lifetime to get it right any more special and deserving of more resources than the young family struggling to get by, the family facing higher health care deductibles and premiums, the same higher food prices, etc.?

Contrary to what it says below, no senior “surviving” on Social a Security will see his Medicare Part B or D premium go up, but that’s not true for the worker who may not have had a raise in a few years, his premium always goes up. And it’s not true that members of congress and federal employees receive an automatic increase each year. Federal retirees receive a COLA using the same formula as Social Security.

Politicians are absolutely reprehensible creatures and add to that well- meaning, empathetic sounding fools like Old Bernie and you have … well you have the mess we have in Washington where pandering for votes always trumps an honest effort to tell Americans the truth and then solve a problem.

Screw it all, I’m moving to Copenhagen where everything is “free.”

Social Security Emerges as Campaign Issue

Hillary Clinton is among Democrats who want to pass legislation to provide a Social Security increase as soon as possible.

Social Security, a financial lifeline for millions of elderly Americans, has returned as a major political issue that Democrats could use to embarrass majority Republicans in Congress and put the eventual GOP presidential nominee on the defensive.

The reason for Social Security’s sudden prominence is that, because inflation has been so low based on government calculations, there won’t be a cost-of-living increase for Social Security recipients next year, only the third time since 1975 this has happened.

There is a growing movement, especially among Democrats, to pass legislation that would provide an increase as soon as possible.

President Barack Obama, many fellow Democrats in Congress and Democratic presidential front-runner Hillary Clinton are urging quick action to provide that boost. They argue that one reason inflation is down is that oil prices are relatively low, but other costs have been increasing for the elderly, such as expenses for food. Also, Medicare premiums are expected to go up for many.

Sen. Bernie Sanders of Vermont, another Democratic presidential candidate, said it’s unacceptable that Social Security recipients won’t get a cost of living adjustment in their benefits next year. Sanders said the formula that won’t allow a COLA increase is wrong. “When millions of seniors in America are trying to survive on 11, 12, 13 thousand dollars a year [in] Social Security, no, we’re not going to cut benefits, we are going to increase and expand,” Sanders said while campaigning in Iowa.

Former Gov. Mike Huckabee of Arkansas, a Republican presidential candidate, asked in an essay on foxnews.com Tuesday, “What will it take for Republicans in Washington to keep their promise to America’s seniors and keep their hands off Social Security and Medicare? Members of Congress and federal employees receive automatic pay raises each year, yet 70 million Americans will NOT receive a Social Security cost-of-living increase next year. How is this right?”

Source: Social Security Emerges as Campaign Issue – US News

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3 replies »

  1. Did anyone in Washington pay attention to what happen in Greece? Greece did not get in trouble over night but the end result was that the government could not pay its people what it promised. Does Congress think we are different? They can’t even pass a budget let alone paying for increased entitlements.

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  2. Here we go again, politicians buying votes with promises that are short term and not paid for. We need to fix Social Security now. Since most low income workers do not save for retirement an increase in the SS tax on workers and employer’s is the answer. It would be low, say 3% each, this would be more in line with the payments they would be getting from SS in retirement.
    Also, lifting the cap and taxing all earned income not just the first $118,500, would help. Also, if and when inflation goes higher than 4%, reduce COLA by 1%. I know many do not like these ideas, but if we do nothing in 2035 will everyone on SS like to receive 25% less, that is where we are headed.

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    • A increase by 3% is about a 50% increase in the tax. That’s quite a chunk from the average income and quite a bite from an employer’s payroll … enough to give most people a nice pay increase.

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