On August 2nd, the Budget Control Act of 2011 established the Super Committee (or formally known as the Joint Select Committee on Deficit Reduction), a bipartisan Congressional committee charged with identifying at least another $1.5 trillion in deficit reduction that could include Social Security cuts, as well as Medicare and Medicaid cuts. This Super Committee of 12 lawmakers, appointed equally by the Democratic and Republican leaders of the U.S. House and U.S. Senate, will report to Congress by November 23, 2011. If a majority of its members reach agreement on all or a portion of a $1.5 trillion deficit-reduction plan, it will get an up-or-down majority vote by December 23, 2011. There can be no amendments or Senate filibuster. The committee can consider cuts to any program and also whether to raise revenues. $1.2 trillion in automatic cuts would be triggered if: (1) the Super Committee fails to put forward a plan; (2) they produce a plan that is not approved by Congress; or (3) a proposal is enacted by January 15th, 2012 but saves less than $1.2 trillion over 10 years. If gridlock occurs and no Super Committee plan is passed, Social Security and Medicaid would be exempted from the automatic trigger. Automatic cuts would be divided equally between defense and non-defense programs. Social Security, Medicaid, unemployment insurance, and other programs for low-income families would be exempted from these cuts. Automatic cuts to non-defense programs would include a cut of up to 2 percent of the amount that would be paid to Medicare providers and insurance plans each year between 2013 and 2021. There would be no cuts to benefits.
The Occupy Wall Street protesters, dubbed the “99ers” because they are fighting for the 99 percent of Americans left behind economically, can back up their claims with economic data. Recent data shows that inflation-adjusted incomes of the top 1 percent of U.S. households increased 224 percent from 1979 to 2007, while the top 0.1 percent (the top one one-thousandth of households), saw their incomes skyrocket 390 percent in the same period. In contrast, incomes for the bottom 90 percent of U.S. households grew just 5 percent between 1979 and 2007.
Progressive revenue proposals would narrow budget gap by trillions
As policymakers continue mulling ways to address the nation’s deficit, it is imperative that their proposals seek to balance spending cuts with additional revenues. The Economic Policy Institute finds that a menu of alternative or supplemental progressive revenue options would reduce the deficit and finance job creation initiatives, including:
Enacting a millionaire surcharge ($383 billion)
Taxing capital gains as ordinary income ($168 billion)
Enacting a financial speculation tax ($821 billion)
Preserving most of the Bush-era tax cuts and shielding 98 percent of households from any form of tax increase, relative to our unsustainable tax policies, makes it exceptionally difficult to adequately fund our civil society.
Support efforts to influence the Super Committee to protect the programs that retirees and seniors need to have a decent retirement that they deserve.Go to the ARA Website at: www.retiredamericans.org to get more information and ways to voice your opinion, such as signing petitions.
INCOME SECURITY AND GOOD HEALTH CARE FOR AMERICA's ELDERLY: The Two Pillars of a Just Society
The Maryland/District of Columbia Alliance for Retired Americans (MD/DC ARA) brings together over 50 thousand retirees from labor and community-based groups into a grassroots movement to improve the health care, economic security and prospects of older Americans
As former President Franklin Delano Roosevelt said, "The test of our progress is not whether we add more to the abundance of those who have much but whether we provide enough for those who have little."
This is not only necessary to build a strong economy, but also for a humanitarian society. The following are the United Nations principles we should adopt in our efforts:
Independence- Older persons and retirees should have access to adequate food, water, shelter, clothing and health care, opportunity to gain an income, have education, and reside at home as long as possible, through the means of income, family and community support and self-help. Participation- Older persons should remain integrated in society, participate actively in the formulation and implementation of policies that directly affect their well-being, share their knowledge and skills with younger generations and be able to seek and develop opportunities for service to the community.
Care and Dignity- Older persons should have access to social and legal services to enhance their autonomy, protection and health care to help them to maintain or regain the optimum level of physical, mental and emotional well- being and to prevent or delay the onset of illness and to protect them in appropriate levels of care in a humane, respectful and secure environment.
Self-fulfillment - Older persons should be able to pursue opportunities for the full development of their potential.
MD/DC Alliance for Retired Americans Position: Social Security: Protect. Preserve. Pass it on.
The MD/DC ARA supports preserving and strengthening the current Social Security system to protect the quality of life for America's retirees and seniors even at a time when America faces other challenges at home and abroad. Our premise is universality: that regardless of income, every person must contribute to the Social Security system, no exceptions.
MD/DC ARA opposes privatization of Social Security which would establish individual investment accounts that dilute future guaranteed Social Security benefits. MD/DC ARA concurs with the recommendations of the Social Security Advisory Board to provide adequate funding for the Social Security Administration to improve its level of service to the public, and to exclude the agency's administrative budget from the arbitrary discretionary spending cap in the federal budget. MD/DC ARA supports reform by the U.S. Congress of the Social Security Government Pension Offset and Windfall Elimination Provision, which unfairly penalize those who have paid into the system.
The MD/DC ARA supports the creation of a high quality, affordable health
care system for all, which provides comprehensive services, including long term care.
The Older Americans Act is Essential
The MD/DC Alliance Position: MD/DC ARA recommends increased funding for services provided to the elderly through the Older Americans Act. The Older Americans Act is the prominent vehicle delivering key services to older persons to encourage community based care and prevents unnecessary or premature institutionalization. Over the last several years, financial support for these programs has declined, as funding increases have not kept pace with inflation or the growing population eligible for services. A significant increase in funding can enhance the ability of older Americans to live with maximum health, independence, and dignity in their own homes and communities for as long as possible.
For further information on issues facing retirees and seniors, visit the Web site of the Alliance for Retired Americans at: www.retiredamericans.org
Fast Facts About Retiring in Maryland and District of Columbia
vThe number of older persons are growing and living longer – in Maryland there are about 650,000 seniors (12 % of the total population) with 13 % in poverty; in District of Columbia there are about 63,000 seniors (11 % of the total population) with16 % in poverty. Many are women who depend on social security for most of their income.
vCompany pensions and employer-sponsored are disappearing causing the difficult challenge of having people fund their own pensions and health care. Since 2000, 50% of employer-sponsored health care plans have ended.
vU.S. health care costs are rising faster than income, especially for seniors. Health insurance company profits have increased 1,084% in five years. vPremium costs are rising three times faster than wages or inflation and are expected to double by 2016 unless we do something.
vTraditional Medicare, the nation’s largest and most financially efficient health system serving the needs of 40 million senior and disabled beneficiaries and their families is being eroded. Current law does not allow the Government to negotiate for better prescription drug costs and causes a significant gap in coverage for Medicare beneficiaries. Therefore, Medicare beneficiaries are spending about 20 percent of their income for health costs, particularly for prescription drugs.