Democratic Primaries
Related: About this forumWarren Proposes the Biggest Expansion of Social Security in 50 Years
Warren Proposes the Biggest Expansion of Social Security in 50 Years
David Dayen
September 12, 2019
The plan, with an immediate $200 per month benefit increase, sets the left edge of the possible on a bedrock Democratic program.
In November 2013, less than a year into Elizabeth Warrens first Senate term, she gave a floor speech rejecting a persistent push, including from her own partys president, to cut Social Security benefits. Her outspokenness came out of studying the economy and noting the precarious finances of an aging population. We dont build a future for our children by cutting basic retirement benefits for their grandparents, she argued. With some modest adjustments, we can keep the system solvent for many more years, and could even increase benefits.
At the time, a few other liberalsSenators Tom Harkin, Sherrod Brown, and Bernie Sandershad endorsed expanding Social Security, an important protection for a working class struggling to retire with dignity. By joining the fight, Warren helped stave off the march to cuts. What was once the province of a few has become the dominant philosophy in the party. Earlier this year, a Social Security expansion package launched with the support of over 200 House Democrats. And now, Warren is charging ahead with the biggest expansion package a Democrat has proposed in decades.
Shes doing it because the struggles remain evident, and worse for those nearing retirement than those already in it. For too many people, particularly people of color, Social Security has become the main source of retirement income, as fewer employers offer significant retirement benefits and stagnant wages eat up savings. The median annual income of women over 65 in 2016 was a paltry $18,380. And thats with many working into their golden years.
A Government Accountability Office report released just this week revealed that poorer seniors had a dramatically lower survival rate than their richer counterparts. Those living into their 70s and 80s tend to rely more on Social Security, but by paying in less throughout their working lives, they receive less in benefits than richer counterparts who need the money less. This inequality doom loop is built into the inputs and outputs of the Social Security system, and Warren seeks to arrest this yawning wealth gap that is literally a matter of life and death.
more...
https://prospect.org/article/warren-proposes-biggest-expansion-social-security-50-years
primary today, I would vote for: Joe Biden
BeyondGeography
(39,351 posts)An endorsement from Moodys chief economist:
The net macroeconomic impacts of the reform are small but positive in the long run; the economic benefit of smaller federal government deficits and debt load is largely offset as high-income people reduce their own work hours, Zandi said. The plan results in a much more progressive Social Security system, as high-income people shoulder the financial burden of the plan, while low- and middle income people benefit substantially.
https://www.usatoday.com/story/news/politics/2019/09/12/elizabeth-warren-social-security-200-per-month-taxing-rich/2294876001/
primary today, I would vote for: Undecided
mopinko
(70,022 posts)and instead is applying it to investment income. that is the way to go.
scrapping the cap is one of those ideas that is simple, appealing, and wrong. want to make ss a target for even more of a target? destroy the connection between fica as an earned benefit, and make it a wealth transfer.
primary today, I would vote for: Undecided
lostnfound
(16,162 posts)primary today, I would vote for: Joe Biden
rurallib
(62,387 posts)never really thought about it that way before.
primary today, I would vote for: Joe Biden
mopinko
(70,022 posts)he fought scrapping the cap his whole life. he did not want to see it stop being something that people owned, and accepted because they earned it.
we all know older people who would refuse to sign up for welfare. he never wanted that kind of shame associated w the program.
this is what turned me off to bernie.
i wish i had a nickel for every time i have engaged in this discussion here. hopefully now people will get it.
this is why i love the crowded field. it has been such a rich policy discussion. and a civics lesson for all.
primary today, I would vote for: Undecided
Wounded Bear
(58,604 posts)the cap should probably be raised to around 250k or so, just to follow income trends.
primary today, I would vote for: Joe Biden
KPN
(15,637 posts)for those earning $250,000 or more annually.
primary today, I would vote for: Undecided
mopinko
(70,022 posts)that was the obvious way to go to me. extend it to unearned income.
not everyone who lives like this is rich. some are benefits from parents who planned for their disabled kids, and like that.
including those people in the program is a very, very savvy move.
and yes, raising the cap by a big chunk is a good move.
personally, my ex made enough for us to pay the max most of his career. it would have been fine w us to pay more. i collect soon, and wish we had been able to invest more. we also have a disabled kid who will also collect a lot more once her dad retires, and there too we wished they would take more of our money.
i would like to see the full plan. i bet she also has a plan to wring the sexism out of the program, and support caregivers.
i have one more pet plan, tho. allow voluntary contributions.
allow people to elect to make the max contribution, w 1/52 deducted each month. it would be great to make their employers do the same, but even an opt in would be great. like a 401k match for those w no plan.
primary today, I would vote for: Undecided
KPN
(15,637 posts)the cap were the same in effect. Yes, I agree. As far as something that can be enacted, its a great strategy. In fact, it actually is an incremental approach when you look at the bigger picture of policy driven income inequality and wealth concentration over the past 40 years.
primary today, I would vote for: Undecided
IronLionZion
(45,380 posts)In effect, this shifts the Social Security system closer to where it was before inequality took off. The payroll tax used to capture 90 percent of wage earnings, and today, because of the cap on earnings above $132,900, it captures only 83 percent. Thats actually far worse, because of the growing shift to capital income, where the wealthy make money by having money. All those earnings normally escape the payroll tax. Inequality is robbing Social Securitys solvency, and the Warren plan rebalances it.
primary today, I would vote for: Joe Biden
KPN
(15,637 posts)Im really impressed with her proposal. In the way it is constructed, it addresses SS solvency fairly completely for another 20 or so years and then also incrementally addresses the inequities of wealth concentration over the past 45 years.
primary today, I would vote for: Undecided
IronLionZion
(45,380 posts)primary today, I would vote for: Joe Biden
MadDAsHell
(2,067 posts)By definition it is "old-age" and "social insurance." Framing it as a "retirement benefit" is one of the reasons so many elderly folks get themselves in financial trouble. Senator Warren should know better.
My grandparents, God bless them, had the income during their working lives to save and invest for retirement. Instead, they spent everything they made and more on high-end vehicles, vacations, and other things they couldn't actually afford, because "social security was their retirement."
They then proceeded to basically live in poverty, solely on social security, the final 25 years of their lives. None of us were in a financial position to help what was a pitiful situation.
primary today, I would vote for: Undecided
Ohiogal
(31,919 posts)coming on the heels of Rob Portman's interview in the Columbus Dispatch, claiming that our deficit explosion is NOT due to the Trump tax cuts (what idiot really believes this) ..... no, Portmasn wants to squeeze Medicare, Medicaid, and SS, which he claims are the REAL culprits to our ballooning deficit. It just makes me want to scream! Do they not realize the wasteful spending of Trump and his regime on golf trips, caging children, wall funding, military, etc. etc.??? Why do I even ask........... It's like they don't know one person trying to make it on SS and Medicare these days ........ We're NOT all like the seniors in the drug commercials who walk hand in hand on the beach!....... most of us are just barely scraping by, and I don't know how young couples with children afford anything. Ohio is one of the seven states whose uninsured actually has gone UP, despite the face that we are a Medicaid expansion state!!! How pathetic is that!!!
primary today, I would vote for: Joe Biden
Martin Eden
(12,847 posts)1. Rewarding rich campaign donors
2. Skyrocketing deficits
Republicans know the only way to cut and eventually kill popular programs like Social Security and Medicare is to convince the public they are unaffordable and hard choices must be made.
To do this they must "starve the beast" of funds.
It is easy to conclude that Republicans who claim the mantle of "fiscal conservative" are too stupid to realize the effect of their tax cuts on the budget, but I think we should consider they are achieving the desired effect.
Republicans need huge budget deficits to achieve their long term goal of shrinking government to a size that can be "drowned in a bathtub."
Repeat:
Huge budget deficits created by Republican policies are intentional.
primary today, I would vote for: Joe Biden
iluvtennis
(19,835 posts)primary today, I would vote for: Joe Biden
KPN
(15,637 posts)scream tax and spend Democrats are bankrupting is with massive federal deficits. tRump is really nothing new, the Rs have been bald-faced lying for decades. Hes just not as wily.
primary today, I would vote for: Undecided
ECL213
(210 posts)primary today, I would vote for: Undecided
grantcart
(53,061 posts)Is that her ideas on how to pay for it ate as smart as her plans to spend it.
Her proposal to tax wealth assets @ 2% after 50 million is brilliant.
primary today, I would vote for: Joe Biden
DemocracyMouse
(2,275 posts)primary today, I would vote for: Undecided
KPN
(15,637 posts)the 5 million would be gone in 50 years?
primary today, I would vote for: Undecided
Fiendish Thingy
(15,551 posts)Say, $1 increase per year, instead of $200 all at once- that kind of socialism might turn off voters and get Trump reelected...
sarcasm
Status Quo centrist Pearl clutching in 3,2,1...
primary today, I would vote for: Undecided
DemocracyMouse
(2,275 posts)Hmmm... Do we trust her plans because we are back to revering well-educated people? I think, after witnessing a man in the White House who never reads anything and is glued to Dumb Fuck news sources, the sticky propaganda label "elite" has finally begun to fade. We WANT a professor in the White House. And this one happens to have experience as both a Senator and a girl growing up in poverty. THREE sources of wisdom.
primary today, I would vote for: Undecided
safeinOhio
(32,641 posts)I would double that by taking back the wealth the rich have stole from us from the time Reagan was President until now.
primary today, I would vote for: Joe Biden
usaf-vet
(6,163 posts)Yet he only pays SS tax on the first $132,900 which means he doesn't pay SS tax on $43,100 dollars of his income.
I'm sure the majority of his constituents would love to make $43,100 / year income.
Recent news reports have indicated he has managed to accumulate $4,000,000 in his campaign coffers in the 8.5 years he has been in congress.
Interesting how that works! So now what happens to that $4,000,000 now that he has announced he is "retiring" from Congress on Sept 23, 2019.
primary today, I would vote for: Joe Biden
turbinetree
(24,685 posts)but everyone making less than $132,900.00 have to subsidize that do make more..................why do I feel that it is like the let them eat cake thing...................that one little penny changes everything..............
primary today, I would vote for: Undecided
highplainsdem
(48,917 posts)when a slightly higher payroll tax rate will kick in for all income above that, according to the analysis at Vox:
https://www.democraticunderground.com/1287273960
So members of Congress will stll have lots of income on which they won't have to pay any payroll taxes.
Warren needs to get rid of that donut hole in this new plan.
primary today, I would vote for: Joe Biden
KPN
(15,637 posts)And what about people especially all of the two income families who make more than $132,000 but less than $250,000?
It sounds to me like her target is strictly wealth as opposed to annual income from labor/work. And her objective is fairness in ensuring SS solvency into the future. So she really isnt raising the fica tax on those who live off annual income from work. Congressman/Senators work (or at least they are expected to).
It seems like a great strategy as far as getting it actually enacted to me.
primary today, I would vote for: Undecided
HeartlandProgressive
(294 posts)primary today, I would vote for: Undecided
zentrum
(9,865 posts)primary today, I would vote for: Undecided
Oppaloopa
(866 posts)primary today, I would vote for: Joe Biden
Hoyt
(54,770 posts)because we have so many other things that we need to pay for: healthcare for everyone, jobs, education, college loan help, deficit and debt reduction, environment, child care, infrastructure, shoring up the Social Security system at the current level of benefits, etc.
Warren needs to prioritize her promises and come up with plans/proposals that will actually pass. She's spent that 2% Wealth Tax, several times over before this new proposal.
primary today, I would vote for: Joe Biden
highplainsdem
(48,917 posts)$132,900 and $250,000:
https://www.democraticunderground.com/1287273960
primary today, I would vote for: Joe Biden
crazytown
(7,277 posts)You will never forgive her role in killing the TPP. You have suggested it cost Hillary the GE - against all the evidence to the contrary.
primary today, I would vote for: Undecided
Hoyt
(54,770 posts)For a moment she made sense about helping Latin American countries like Venezuela.
Then, she turned right around and all but condemned Mexicans, etc., to working for 50 cents a day on dirt farms rather than decent factory jobs at 10, 20 times that per hour with her trade junk to supposedly preserve American jobs. America First, again.
At least Biden gets that we are part of a much bigger world.
primary today, I would vote for: Joe Biden
crazytown
(7,277 posts)Backing the TPP would have disadvantaged, not helped, HRC in those states.
My message is that things have to change and they have to change right now. Every day I wake up determined to deliver a better life for the people all across this nation that had been ignored, neglected and abandoned.
I have visited the laid-off factory workers, and the communities crushed by our horrible and unfair trade deals. These are the forgotten men and women of our country, and they are forgotten, but they will not be forgotten long. These are people who work hard but no longer have a voice.
I am your voice.
DJT, RNC Acceptance Speech.
How would the TPP have helped Hillary in OH, MI, PA, or WI?
primary today, I would vote for: Undecided
Hoyt
(54,770 posts)etc., looking for a better life, our jobs are more important than anyone else in the world."
Classic "America First," or as Warren tries to call it "Economic Patriotism." Those same Midwestern states went for, guess who? And guess why?
primary today, I would vote for: Joe Biden
crazytown
(7,277 posts)I went looking to see what she was talking about, when I first heard that expression. There is populist rhetoric, but 'the plan' is as much about making America competitive, as luddite protectionism -
A - Intervention on Behalf of American Workers
Leveraging federal R&D to create domestic jobs and sustainable investments in the future.
Production stemming from federally funded research should take place in the United States.
Taxpayers should be able to capture the upside of their research investments if they result in profitable enterprises.
R&D investments must be spread across every region of the country, not focused on only a few coastal cities.
Deploying the massive purchasing power of the federal government to create markets for American-made products.
Restructuring worker training programs to deliver real results for American workers and American companies.
Dramatically scale up apprenticeship programs.
Institute new sectoral training programs.
More actively managing our currency value to promote exports and domestic manufacturing.
B- The Department of Economic Development
Our international competitors like China, Germany, and Japan develop concrete plans for promoting domestic industry and then make serious investments to achieve their goals. Chinas Made in China 2025 plan aims to dominate advanced manufacturing in the coming decades using various incentives and hundreds of billions of euros in subsidies. Germany and Japan have also developed plans that identify long-term goals for domestic production and put real money behind achieving them.
This is a pretty straightforward idea. But outside of the defense context, the United States has nothing remotely like it.
Government programs that affect job creation are an afterthought, uncoordinated and scattered across the government, and submerged in larger agencies with different primary missions:
There are 58 programs in 11 federal agencies that provide support to American manufacturing all of them tacked on to the primary missions at those agencies.
There are at least nine offices in five different agencies primarily responsible for trade policy and export promotion.
And there are 47 different employment and training programs spread across nine different federal agencies.
https://medium.com/teamwarren/a-plan-for-economic-patriotism-13b879f4cfc7
primary today, I would vote for: Undecided
Johnny2X2X
(18,973 posts)The disabled and the elderly cannot live in dignity with what the minimum is now, this would lift millions up towards a dignified existence.
primary today, I would vote for: Joe Biden
highplainsdem
(48,917 posts)for the increase for low-income seniors -- I'm not sure how this works, if their Social Security goes up, but would it cut into any other benefits they might be getting, maybe even make some seniors ineligible for those benefits (so the increase would help higher-income seniors much more than lower-income)?
primary today, I would vote for: Joe Biden
elocs
(22,546 posts)primary today, I would vote for: Joe Biden
We're probably fucked.
primary today, I would vote for: Undecided
Shit is hard, so lets do nothing.
primary today, I would vote for: Joe Biden
elocs
(22,546 posts)I never said "do nothing" but an explanation of how it would realistically get done would be nice.
primary today, I would vote for: Joe Biden