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Pelosi Stacked Deficit Commission To Protect Social Security

First Posted: 10/06/10 01:41 PM ET Updated: 05/25/11 06:55 PM ET

Pelosi

Nancy Pelosi will be prepared to beat back a run on Social Security or Medicare if the deficit commission recommends cuts to the popular entitlement program following the November election. The House Speaker deliberately avoided appointing House chairmen with jurisdiction over Social Security and Medicare to President Obama's commission, House staffers involved with the commission tell HuffPost, so that she could retain the option to sidetrack the panel's recommendations.

Pelosi appointed Budget Committee Chairman John Spratt (D-S.C.), Rep. Jan Schakowski (D-Ill.) and Rep. Xavier Becerra (D-Calif.). Becerra is a member of Pelosi's leadership and a close ally. Schakowsky is also a progressive ally of Pelosi's.

If the commission recommends cuts to Social Security or Medicare, the Speaker would have the option of referring the recommendations to the Ways and Means Committee. None of the chairs of the committees or subcommittees with jurisdiction over Social Security or Medicare are on the deficit panel.

Sen. Max Baucus (D-Mont.), chairman of the Finance Committee, with jurisdiction over Social Security and health care, is on the panel, as is Senate Budget Committee Chairman Kent Conrad (D-N.D.), though Sen. Tom Harkin (D-Iowa), who chairs the Health, Education, & Labor Committee, is not on the panel.

Pelosi worried Social Security advocates earlier this year by bringing a resolution to the floor indicating that it was the sense of the House that the panel's recommendations get an up or down vote. The resolution is not binding.

Pelosi, in an interview Tuesday with HuffPost said that if the commission tried to balance the budget by raising the Social Security retirement age "it would get a very negative response."

Pelosi said that there was no chance that Social Security would be cut during the lame-duck session. "No. Here's the thing. It's really important to make this distinction," she said. "There are two things happening here: We have a big deficit, so people say, 'Well, we're going to change Social Security to help the deficit.' They have nothing to do with each other directly."

Social Security advocates have objected to the inclusion of the entitlement program in the deficit commission's deliberations, because the program is fully paid for through 2037. "If you want to look at any provisions of Social Security, it has to relate to Social Security. It can't go over to this column to pay for tax cuts for the rich. They're two different subjects," she said. "If Social Security is solvent and has a lot of money in the trust fund, that's a good thing for our fiscal stability. But it isn't a way to bail out two unpaid-for wars, tax cuts for the rich that brought us nothing in terms of our economy and job creation, and some of the other initiatives [related to] tax breaks, people sending jobs overseas and the rest of it."

The commission is considering recommending increasing the retirement age, which would constitute an across-the-board cut and would be unfair to seniors, Pelosi said.

"How can you say to seniors, 'You're going to have to work longer.' Now, mind you, it's okay for me to work to 70--no heavy lifting, no outdoor work. But it's not okay for laborers to work to 70. It's all relative. But you're going to [be forced to] work to 70, no matter what, so we can give a tax cut to the richest people in America? Something is missing in this picture, and if they tried to do that I think it would get a very negative response," she said.

"Let's hope they're thinking in a more fair way about how to go forward. I have no idea," said Pelosi. "I do know I have confidence in the people I named to the commission." And the ones she didn't.

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Nancy Pelosi will be prepared to beat back a run on Social Security or Medicare if the deficit commission recommends cuts to the popular entitlement program following the November election. The House ...
Nancy Pelosi will be prepared to beat back a run on Social Security or Medicare if the deficit commission recommends cuts to the popular entitlement program following the November election. The House ...
 
 
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07:58 AM on 10/09/2010
There is no consumer confidence & no consumer demand.
For the few willing to venture into the unknown, banks deny their mortgage applications.
Enough with using taxpayer and borrowed funds to help the rich, business, banks & Wall Street…

End high unemployment, foreclosures and jump start the economy –
WITHOUT SPENDING TAXPAYER MONEY!

Want to put Americans to work, help Main Street and stop the Financial Crisis without borrowing and increasing debt? Want to accomplish this within three to six months?

Give all citizens (with incomes up to $250,000) the option to withdraw some/all of their retirement savings TAX FREE IF THEY PAY ALL CASH FOR A PRIMARY OR SECOND HOME OR RENT TO SOMEONE WHO LOST THEIR HOME!

Retirees and those near retirement have suffered significant losses to their savings thanks to Wall Street greed. Tax free withdrawals for home purchases would make up for some of these losses, put a bottom on home prices, reduce foreclosures, increase consumer confidence and spending, provide state and local governments with much needed real estate taxes, and provide construction, consumer product and other employment without costing the taxpayer a dime.

Putting America back to WORK and in HOMES (not tent cities) without outsourcing!
07:54 AM on 10/09/2010
Way to go Nancy!
natgirrl
If it doesn't make sense, it doesn't make sense
08:59 AM on 10/08/2010
I hate to say this but Pelosi has bigger b@@ls than our president.
09:42 AM on 10/08/2010
Nancy shows how it can be done. Steny and Obama don't know how to do anything but cowtow to the republicans.
08:44 AM on 10/08/2010
We need to pass the word that Nancy Peloski is on our side. More Democrats need to speak out in defense of Social Security and Medicare.

Nancy is so much better than the republican lite Steny Hoyer.
02:12 AM on 10/08/2010
A plan for debt reduction = confidence in the future = corporate investment, job growth, retail sales growth, GDP growth

1. We have 837 military bases in 46 countries. Close all the bases in Europe and Japan. Close all the bases not presently being used directly for Afghanistan and Iraq. Imperial overstretch has bankrupted us and we don't need to support the economies of 46 overseas countries. Just our own.
2. Exit Afghanistan and Iraq as the roots of terrorism against the west are in the Israeli / Palestinian dispute, not in Iraq, Afghanistan or Pakistan.
3. Cut all federal department budgets by 10%. Cut defense by 30%.
4. Reduce salaries of all federal employees by 10%. Private sector and state employees have all had their salaries cut. Freeze federal salaries and federal hiring.
5. No tax cut extensions for those making over $250,000. Trickle down doesn't work. Ask Zimbabweans.
6. There's at least $300billion in savings per year already identified by Heritage Foundation and similar think tanks in Washington.
7. Sell all vacant federal buildings
8. Cap the federal budget at 15% less than it was before the crisis began.
9. Raise Social Security’s retirement age to 70
9. Raise taxes 5%

That's $1Trillion per year in savings. No fiscal plan = no confidence = no corporate investment, no jobs growth, no GDP growth. No plan, the US dollar tanks, oil soars and end of recovery.
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HUFFPOST SUPER USER
veritas aequitas
06:58 PM on 10/07/2010
When I am feeling dow,
and it seems that life is really bad,
I remember that somewhere in the world
there is a man called Mr. Pelosi

And I know that I don't have it so bad.
This user has chosen to opt out of the Badges program
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02:25 PM on 10/07/2010
This is Lady just scares me, she has been out of control...God help us...
11:28 AM on 10/07/2010
Hey Ryan - Pelosi is not going to be speaker anymore so her plans are irrelavent
10:28 AM on 10/07/2010
Of course this only works if Pelosi is still speaker. It is possible. Please get out and vote!
10:53 AM on 10/07/2010
You know, the longer we push off our troubles, the worse the collapse will be when it comes. The recent financial crisis is one such story - if the Federal Reserve hadn't reduced interest rates dramatically to fend off the tiny recession that was forming in the early 2000s, we probably wouldn't have had such an extreme housing bubble whose collapse triggered a much bigger recession in the late 2000s.
HUFFPOST SUPER USER
willysworldrocks
11:57 PM on 10/06/2010
Nancy is ready to lead and drain the swamp! What a repulsive woman. She's gone soon from the leadership but that weird planet she comes from keeps electing this career pol. What a shame!
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Littlewords
My micro bio was outsourced to my nano-bio: I'm me
12:54 AM on 10/07/2010
Right, Newt and Tom DeLay were so superior. Each of course leaving in total disgrace and as total failures. It is the prerogative of the speaker to staff as she sees best. Her argument is sound on protecting SS from being a tax cut enabling pawn. Although I am certain you are either for ki11ing the program or privatizing it (our privatizing seems to predictably lead to failure...we don't trust the banksters but will turn over social security to them). Further SS is not part of our deficit problem today, its funded and covered.
ciscoguy
They cling to their abortions & AGW religion.
11:09 AM on 10/07/2010
Where exactly is SS (or Medicare for that matter) mentioned in the Constitution? Besides, both are unsustainable. As it stands, they're nothing more than a bucket of IOU's that keeps getting bigger since they are mixed in with general revenue.

DeLay was acquitted and Newt's control of spending propelled Clinton to a 2nd term. What are you complaining about?
10:10 AM on 10/07/2010
We all have our point of view. For me Pelosi is one of the few both great and principled politicians out there. If all the Dems were like her, I would be one happy citizen.
ciscoguy
They cling to their abortions & AGW religion.
11:11 AM on 10/07/2010
I guess it's nothing new for liberals to admire "principled" totalitarians...Castro, Chavez, Mao.
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HUFFPOST SUPER USER
Osmona
Its GREAT to be alive and SANE.
01:58 PM on 10/07/2010
I AGREE with you.

Fanned
IncredulousInNorthDakota
Never Surprised by Stupidity
10:49 PM on 10/06/2010
Thank you for standing up for us, Nancy.
Let's take the simple solution and remove the $106,000 income cap.
Oh, but wait, that would increase taxes on anyone earning over $106,000 annually...
Let them scream; they've been rigging the game for decades.
It's time for fair treatment across the board.
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HUFFPOST SUPER USER
Schaef
10:29 AM on 10/07/2010
That would also increase payout for anyone earning over $106k. Are you prepared to give the rich a greater amount of public-funded retirement insurance payouts?
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HUFFPOST SUPER USER
IndependentMeans
Some people are wise, and some are otherwise.
10:35 PM on 10/06/2010
Looking forward to post-election when every page on HP doesn't have a Meg Whitman ad.
RTIII
Poster of over 0.0135% of all HufPost comments
10:30 PM on 10/06/2010
I sure wish Nancy was this liberal sounding - and ACTING - ALL the time.

Most of the time, Nancy _says_ the liberal / progressive thing but doesn't act that way when the time comes.
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HUFFPOST SUPER USER
DLCA
10:16 PM on 10/06/2010
Good for Nancy....the way to reduce the deficit is not by attacking Social Security, Medicare, or Medical...
You reduce deficits by bringing in MORE REVENUE and the only way to do that is to
1) Close loop-holes that allow the top 2% and corporations to avoid taxes
2) Restore the tax rates for the top 2% to what they paid under President Clinton (who was able to create the biggest surplus in US history before W and the GOTPers squandered it)

The idea that the restoration of the Clinton-era tax rates for the top 2% will impact small-businesses is false...the "small businesses" are not the types of businesses that we normally think of when we hear that term. Small Business term can be applied to the Koch brothers...why? because they own their businesses and since the number of owners can be used to define a "small business" the Koch brother's businesses fall into this category.
10:27 PM on 10/06/2010
The problem is not revenue. The problem is Federal spending has gone up 25% in 2 years. To end the deficit simply freeze spending at current levels. In less than 5 years the deficit will vanish because of inflation.
HUFFPOST COMMUNITY MODERATOR
jwredd
12:56 AM on 10/07/2010
Did you read that in one of Bohner's glossy pamphlets?
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HUFFPOST SUPER USER
Schaef
11:05 AM on 10/07/2010
This is absurd. There are two ways to reduce a deficit: make more or spend less.

Revenues skyrocketed under the Bush tax rates, in many cases faster than under the Clinton tax rates, but factor in the dot-com bust and 9/11 and it tends to balance out. Revenues have been down the last two years, but not because of tax rates. It's because the whole system has been down. The difference between the Clinton years and the Bush years is that while tax receipts went up 6-9% annually, outlays only went up 2.6-3.7%. In Bush's second term, outlays went up 7-8% annually but revenues outpaced them. In the last two years, revenues went down 2% and 16%, but outlays went up 9% and 18%. Obama plans to continue growing the government at Bush-era rates (5-7%) and is relying on a huge surge of new revenues which did NOT occur under Clinton-era taxes.

If you want to grow revenue, grow the GDP. Under Bush tax rates, revenue growth even outpaced GDP growth in the four years following Tax Cut II. But if you are serious about balancing the budget, be mindful that outlay growth in the 90's was HALF of what Obama proposes.
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HUFFPOST SUPER USER
joyf1
Glad I live on an island.
09:59 PM on 10/06/2010
Elections have consequences. We won. Thank you, Speaker Pelosi.
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HUFFPOST SUPER USER
DLCA
10:17 PM on 10/06/2010
now, let's DO IT AGAIN!!!
FIRED UP? READY TO GO!!!!
10:04 AM on 10/07/2010
I will be sure to remind you of that on Nov 3rd.
ciscoguy
They cling to their abortions & AGW religion.
11:14 AM on 10/07/2010
Roger that. They've been unmasked. Time to fire the marxists.