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Pearl Korn

Pearl Korn

Posted: November 29, 2010 09:36 AM

Rep. Jan Schakowsky (D-Ill.), one of the 18 members of the Deficit Commission, has offered her own plan in response to the Commission's proposals, which she has rejected. Rep. Schakowsky's major concern is that the Commission's recommendations to raise the age of enrollment in Social Security and cut Medicare benefits will take a serious toll on the middle class. Indeed, the two "deficit Hawks" chairing the Commission have shown their willingness to privatize Medicare and end Social Security, with an out-of-control Alan Simpson blustering, "Medicare is like a cow with 300 tits that keeps on giving" and casting Americans who receive support from government programs as worthless, undeserving, lazy people with his "lesser people" comment. Of course, Simpson should have been dumped then and there.

What a delight, however, to see a Democrat with real cajones -- metaphorically speaking, that is -- while Simpson obsesses about tits. Schakowsky is showing both chairs what "fight back in the sand box" is all about by going on offense, a lesson to be emulated by all Democrats. She has been very clear in stating that Social Security does not contribute to the deficit, is self-financing and is solvent until 2037, paying full benefits and then paying at 80% beyond that date. So why is it even on this table? According to the Congresswoman, there is no relationship between the deficit and Social Security. Most of us already know that, except, apparently, for Simpson and Bowles. But we understand their deeper motivation: decimating our bedrock safety nets like Medicare and Social Security that have been sticking in the craw of conservatives for decades. This is their main mission.

Without Social Security, millions of seniors would have been thrown into poverty during the past 75 years, and will be in the future if Simpson and Bowles get their way. One of America's shining achievements of our history, dumped in favor of more giveaways to the rich. Social Security is a stimulus program that trickles down to every community in our country, paying for food, clothing, housing, prescription drugs and countless other basic necessities. If anything, those benefits should be increased, as the current average payout of $14,000 per person per year hardly provides for the basics, let alone the lavish lifestyle imagined by Simpson and his crowd. An increase could generate further stimulus. Indeed, if we're able to bail out the financial and auto industries, we can increase Social Security benefits for the poor and middle class, who immediately spend those dollars in their communities. The Commission is also proposing cutting the COLA (cost of living adjustment for inflation) for Social Security, which already has not been paid for the past two years.

Of course, the question that begs to be answered is what the negative impact to the economy would be if the eligibility age for Social Security rises from 65 to 69, which is the Deficit Commission's proposal. Since there are no economists on the Commission, this question has certainly not been properly addressed.

The Schakowsky Plan could reduce the deficit by $427.75 billion by 2015, without burdening the middle class. This would surpass the projection of the President's target of $250 billion -- an amount that the Commission's plan would not even achieve.

Schakowsky's plan also calls for:

  • Raising taxes on the highest incomes.
  • Modifying Social Security without changing benefits paid out.
  • A $200 billion two-year stimulus investment, creating jobs and providing economic growth.
  • Cutting farm subsidies and the Pentagon budget by more than $100 billion (both of which are also being proposed by the Commission, though Schakowsky goes further by cutting unnecessary weapons systems, reducing troop levels and other measures).
  • Imposing taxes on corporations that out-source jobs and saving $132 billion from limiting or closing tax breaks on corporations.
  • Letting the Bush tax cuts for the wealthy expire.
  • Treating capitol gains and dividends as regular income, which could generate another $150 billion.
  • Removing the caps on payroll taxes for employers and lifting the threshold above $106,000 for employees, and imposing a 'legacy tax' above the cap.
  • And, most impressively, Schakowsky proposes a Public Option for health insurance, which would lower healthcare costs and allow the government to negotiate drug prices with the PHARMA industry to lower costs, like it does for the V.A. Drug costs could become a fraction of the amount that seniors now pay. Tellingly, both Bowles and Simpson acknowledge a Public Option may be necessary if costs don't go down, so perhaps a P.O. could finally be on the way? There is certainly no indication health care costs will decrease in 2011.


Conversely, the Simpson/Bowles plan includes numerous draconian measures that will hit the middle class and, most shamefully, our military, including cutting soldiers' pay and the military's health care system TRICARE. Schakowsky's plan offers no such cuts.

The Commission is expected to approve a plan by Dec. 1st, and then send it to Congress for a vote. In order for the plan to reach Congress, however, 14 of the 18 members of the Commission must approve it. Is consensus possible?

The president recently said on the air that he wants ideas. He must take a look at Rep. Schakowsky's plan alongside the Commission's and decide which one will benefit and speak for middle class America. His response will be telling.

Rep. Schakowsky offered an excellent understanding of economic policy in stating, "The goal of budget policy should be to assure long-term, widely shared economic growth. Sustained long-term economic growth requires that we end the trend of concentrating more and more wealth in the hands of the rich and less in the hands of a middle class that can then afford to buy the products and services that will sustain economic growth."

Hear, hear!

Also see my previous post on HuffPost A Misguided Deficit Commission

 
 
 
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09:46 AM on 12/02/2010
Yea this plan sounds much better. Lets get the money from the ones who prospered and caused the deficit.
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Pearl Korn
01:07 PM on 12/02/2010
Absolutely. Let's tap into those BIG FAT wallets. Time they contributed their fair share.
09:30 PM on 12/01/2010
This makes sense. Love her plan, she's smart and she's right. We shouldn't have to continually obliterate the middle class to get things done that help many versus a few.
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Pearl Korn
07:12 AM on 12/02/2010
You are absolutely right. Now if we can get those bright lights in D.C. to see what most of us see and get.

It is tough sledding but we have to keep on pushing.
07:02 PM on 11/30/2010
You can go here and see the briefing from Bowles and Simpson this afternoon:

http://www.c-span.org/
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Pearl Korn
07:55 AM on 12/01/2010
Many thanks for passing this along.
03:44 PM on 11/30/2010
Pearl, Simpson and Bowles are on Cspan 3 now.
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Pearl Korn
08:01 AM on 12/01/2010
The good news is the vote delayed until Friday.
And yesterday Tim Carpenter of PDA met with her.

My post was delivered personally by Tim to the congresswoman. And further strategy discussed.

pda.org check their site. Great stuff and tremendously active.
01:59 PM on 11/30/2010
It was the fiscal commission. I don't know if there was an actual vote or they just did a head count of how many were for the bill, but they told on Bloomberg that the votes were not there to pass the bill.

I think 14 out of the 18 have to vote to pass the bill before they can send it to the president.

Former GAO head David Walker believes that major progress can be made on a budget plan next year, even if the co-chairmen’s report doesn’t attract broad bipartisan support.

“Everything depends on the president,” he said. “He can lead, by incorporating some of these ideas in his budget. I think we’re going to know when we see that budget.”

Social Security is not about overspending. That is the retirement money for the elderly.

Sure there is too much Medicare spending because of the way there is no bidding and not much has been done to control drug and insurance costs.
03:27 PM on 11/30/2010
It will be presented no matter how many votes it gets. The total will just show how much agreement there is on the plan.
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Pearl Korn
08:03 AM on 12/01/2010
Right now no consensus and the panel vote delayed until Friday.
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cadawa
04:00 PM on 11/30/2010
Right. Social Security is a separate system from the budget. They exceeded their brief and exposed their corporate underpants. Congress is under no obligaion to consider anything that comes out of this commission no matter how they vote.
This is a commission that was meant to bring bi-partisanhip to the budget process. When it failed to the pass the Senate because six of bill's GOPs supporters voted against it, Obama created it by Executive Order.It seems to me he can just as easily disband it by Executive Order because it is not serving the interests of the American People.
Medicare spending can easily be curtailed by refusing to pay the inflated prices of ineffiicient or greedy providers. Nader figures this would save about 250 billion a year. Congress refused to provide for price negotiations with providers and pharma. Their little gift to their big donors.
Social Security should be strengthened and payments increased not decreased. There has not been a raise in a generation. The past two years there has been no cost of living increase because of the collapse of housing market. Most seniors aren't buying houses but their medical bills have skyrocketed; an item that isn't included in the cost of living index.
01:40 PM on 11/30/2010
I was already a fan of Shakowsky's. Now she is my new hero.
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Pearl Korn
03:04 PM on 11/30/2010
Right on and good choice.I'm with you.
01:34 PM on 11/30/2010
Most of what Schakowsky recommends are tax increases. What a shock! And they should not happen. People like her are simply unwilling to understand it's not all about under taxation, it's about over spending. Schakowsky is entirely irresponsible and thank goodness her recommendatons will not be seriously considered. Her suggestions are as likely to be implemented as a living pteradactyl is to be seen flying over New York's Central Park.
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Pearl Korn
03:13 PM on 11/30/2010
And cutting waste . Increases for the wealthy who pay minimal taxes long overdue. Warren Buffet stepped up to the plate the other day and said TAX ME. The system he remarked has been lifting all yachts. His taxes are lower than his secretary.Something is wrong with that picture. And those corporate loopholes evading taxes and off shoring that money.New tax policy needed.

And yes spending has to be tightened as well. We need more bang for our bucks and accountability for those bucks.
11:13 AM on 11/30/2010
They told on Bloomburg on TV that the fiscal commission canceled their TV appearance today because THEY DIDN'T GET ENOUGH VOTES TO PASS THE BILL.

It isn't over though. They have reconvened to see if they can't get some to change their minds today.
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Pearl Korn
12:26 PM on 11/30/2010
From your statement I am not sure if you are referring to congress or the commission pane? We had not heard that at least 14 or the 18 agreed to the bill? It would then move to congress.

In any event good news the t.v. appearance was canceled. I like that a lot.
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ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
10:43 AM on 11/30/2010
The budget was balanced when Bush took over, so just undo Bush what Bush did:
Let all the Bush tax cuts expire, cut defense spending in half, eliminate Medicare Part D.
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Pearl Korn
12:27 PM on 11/30/2010
Not bad suggestions.
01:37 PM on 11/30/2010
Why not go back to Bush's 2008 spending levels - minust TARP?
09:31 AM on 11/30/2010
Dear Pearl --Complimenti for your wonderful article!While the Deficit Commission's proposals are not yet officially known;however,it appears that,respectfully,there are on the horizon some,literally,out-of-this-world recommendations,which supposedly would address some apparent problems a/k/a the U.S.Deficit.Namely,we're being prepared to listen at the options"to raise the age of enrollment in Social Security[SS]and cut Medicare benefits"as well as that,there is a"willingness to privatize Medicare and end Social Security."Respectfully,on the onset,these proposed recommendations could fare well in a"stratospheric"environment;however,the truth of the matter still remains that we live in America,and common sense MUST prevail!Please,I would like to only elaborate upon the issue of SS to make my point about one of the Deficit Commission's proposals.It's apparent that SS does not increase the deficit—namely,SS is viable until 2037....—nevertheless,there is still a"problem"with SS,which stems by the fact that it's NOT being properly funded.Particularly,people"are out of work;"therefore,they cannot contribute in the funding of SS.In other words,the solution to correct the so-called funding problem of SS"MUST"be the creation of new"JOBS--i.e,Rep.Jan Schakowsky(D-Ill.)common sense's recommendation:" creating jobs and providing economic growth"--which essentially would provide a new stream of CASH for the system.Let’s resort to BASIC MATH;c’est-a-dire,raising“the age of enrollment in Social Security”is not the solution to address the supposedly Deficit issue;ou contraire,creating new"JOBS,"thus,the creation of a healthier stream of cash into the SS fund"is/est/e',etc.,/"the solution to address this complex/simple matter!!!C'est tout!!!Pearl,COMPLIMENTI for your labor-of-love,Rosario
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Pearl Korn
12:28 PM on 11/30/2010
JOBS, JOBS AND MORE JOBS WOULD SOLVE MOST OF OUR PROBLEMS.
01:38 PM on 11/30/2010
Progressives wouldn't be in the fix they are had Obama and the Democrats been able to provide just what you suggest we need.
09:05 AM on 11/30/2010
The Schakowsky plan is excellent and superior by far to the Simpson/Bowles plan.
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Pearl Korn
12:30 PM on 11/30/2010
Yes, and we have to help Jan get that message out. Please contact your rep. to support her efforts.
01:41 PM on 11/30/2010
Do you really think a plan so heavily laden with tax increases has a snowball's chance in this more conservative political environment? Didn't the voters just have a referendum that distinctly castigated the Democrats for their overspending, over borrowing ways, and under improving our economic situation ways?
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Vegan Girl
Compassion for all
07:44 AM on 11/30/2010
I am so proud of Jan Schakowsky. She is my representative and she will get my vote every time.

That said, I am pretty sure her plan will not be considered let alone implemented. Instead, the economy and the American people will have to endure the cruel and destructive policies of the likes of Mr Simpson. (Who would want to raise retirement age in a 10% unemployment?)
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Pearl Korn
09:39 AM on 11/30/2010
Please call her office and tell her to check my post. I sent an email to her political dir. but who knows if it will reach Jan. She needs to hear about the response and great support for her on this post and the activism on her behalf it is generating. She also has a petition on her site for her plan. Please sign on and pass around to others in the area. And yes, Jan is showing tremendous leadership. Hope it is catching.
Thanks.
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Vegan Girl
Compassion for all
12:20 AM on 12/01/2010
Her office usually responds to calls, e-mails. Her Facebook page has a link to this article. And yes, I have became a citizen sponsor of her plan some time ago. She rules!

http://www.facebook.com/pages/Janice-Schakowsky/15338600709

:)
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yougg
just a citizen
06:46 AM on 11/30/2010
Rep. Schakowsky's proposal makes total sense for the majority of the citizens. However corporations are going to fight this tooth and nail. But there are more of us than there are of them. Alan Simpson's comments about the cow with tits was very telling. Is this guy is totally out of touch, senile, bought, or what? It is fortunate that this discussion is happening. Contact your elected representatives and make your views known. Maybe we will get something that will make some actual sense.
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Pearl Korn
09:44 AM on 11/30/2010
Great. You are right on all counts. Most importantly PLEASE, one and all call your Reps. to support Jan and her plan. WE need to push from the bottom up and make it happen. We reject the middle class relegated to the role of punching bag for the power elite.We are mad as hell and won't tale it anymore.
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Aarontastic
"Mr. Cain instead decided to try to provide her wi
12:13 AM on 11/30/2010
Well I will applaud the Representative too, because she came up with a very lovely plan which all liberals and progressives can salivate over. Sadly, it will never, ever, ever pass. Not now, when it has the best chances, and certainly not in 2012, when the Republicans will probably be even more influential. It won't even be considered. It sure makes Representative Schakowsky look good, though. It's just not a proposal that is going to get any serious levarage behind it.
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Pearl Korn
09:46 AM on 11/30/2010
Boy are you a downer. Non the less some of us will continue to work for change. Hope you come on board.
01:46 PM on 11/30/2010
Well, what Aarontastic has written is political reality. This is Jan Schakowsky's Don Quixote moment.
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Kache
Citizens, Unite!
06:12 PM on 11/30/2010
It makes Jan Schakowsky look good enough to be the running mate in 2012.
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Pearl Korn
08:58 AM on 12/01/2010
DON'T KNOW ABOUT THAT BUT SHE IS SHOWING REAL LEADERSHIP AND I HOPE IT CATCHES ON WITH HER COLLEAGUES IN THE PARTY.

i under stand she has linked this post to her FACEBOOK PAGE. How great is that.
Pearl
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jstrate
12:02 AM on 11/30/2010
What a sensible plan! I suppose that means it has little or no chance of being seriously considered, enacted, and implemented. Down the road, the continuing rise in health care costs is the biggest problem for governments at all levels. A big myth is that spending more on health care in this country will mean better health. Unfortunately, about 1/5 of hospital visits result in harm to patients (North Carolina study). The record here has not improved. Waste is everywhere in health care. It's become a leading cause of injury and death in this country. It may be time to knock medicine off of its high horse and bring it down to earth. To be sure, we all need medicine, but it can't deliver everything that we all might want at a price this country can afford. The causes of good and poor health lie mainly outside the boundaries of medicine.