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Social Security's Biggest Threat: The Debt Deal Super Committee

Posted: 08/04/11 12:07 PM ET

This week's deal to raise the debt ceiling should remove any doubt about the power corporate interests have over our government. The deal, hammered out by the president and Republican congressional leaders, places the burden of reducing our long-term budget problems squarely on average Americans, while the wealthiest individuals and corporations are given a free pass.

But the deal poses a larger threat. A provision in the agreement creates an appointed "Super Committee" in Congress that could circumvent normal rules and slash cherished programs like Social Security, Medicare, and Medicaid.

How could this happen? Prior to this week's debt agreement, it's been extremely difficult to cut Social Security benefits, because doing so required 60 votes to overcome an almost certain filibuster in the Senate. And rightly so - Social Security is the most successful and popular government program in the history of the United States.

Yet the so-called Super Committee, which will be appointed by congressional leaders in both parties to consider additional budget cuts, will enjoy authority that no other entity or special legislative process has ever had: it will have the power to propose Social Security reductions that are guaranteed an up-or-down vote in the Senate, and therefore can be adopted by a simple majority. And unlike most measures in the Senate, the Super Committee's recommendations related to Social Security will not be subject to unlimited debate - a standard protection against drastic action. Further, no amendments will be allowed. Make no mistake, those who crafted and agreed to the Super Committee were well aware of this and there can be no doubt Republicans plan to take full advantage.

So ultimately, if the Super Committee's recommendations propose cuts to Social Security, the only means to block them would be to strike down the entire Super Committee bill. But there's a dangerous trapdoor - failing to enact the overall Super Committee bill would trigger automatic across-the-board cuts that will be strongly opposed by powerful constituencies.

In short, unless congressional leaders appoint progressives willing to stand up to moneyed interests, the Super Committee will be nothing less than a chopping block for Social Security.

Here's how it would work: assuming all 6 Republican appointees support Social Security cuts, it would only take one Democratic appointee to include them in the committee's final recommendation. Once cuts to Social Security are included in that final Super Committee bill, the Senate's 47 Republicans would need just four Democrats to produce the majority needed to pass them, and unfortunately finding those four Democrats probably is not all that difficult.

And ironically, the inability to amend the Super Committee legislation will provide some senators with the perfect excuse: "I didn't like the Social Security cuts, but I had to accept them as part of the entire bill."

This means that the identity of the Democratic appointees to the Super Committee will be critical. Because sadly, there are already a handful of Democratic senators ready to take an axe to Social Security; and regrettably, some of them are well positioned to sit on the Super Committee. So it's essential that every Democrat appointed to this perverse Super Committee pledge to reject any cuts to Social Security.

House Minority Leader Nancy Pelosi understands this, and has promised that each of the Democrats she appoints to the Super Committee will oppose entitlement benefit cuts. Democrats should urge Senate Majority Leader Harry Reid to make the same commitment. America's most cherished social program must be protected.

 

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HUFFPOST SUPER USER
EmilyPEarwig
05:09 PM on 08/07/2011
Anyone that gives a hoot about future generations will realize there is no way we can continue spending on entitlements at the level they currently exist. Social security had a $49 billion deficit last year which will quickly grow as more babyboomers reach retirement. The average SS recipient will receive twice the money they put in the system, and that's after considering accumulated interest. Medicare covered 46 million citizens in 2009 and will balloon to 61 million by 2020. The average medicare recipient will cost four times what they paid into the system. Yes, we need to increase revenues, but they cannot cover the deficit and increased entitlements. What is so bad about raising the retirement level, means testing and reducing the rate of COL growth for social security. No one will have their benefits cut. And if medicare retirement age is raised, it is means testedand is turned over to the states, they can better control the high percentage of fraud and reduce costs with local clinics in major population areas. Saying entitlements should not be touched makes for great talking points, but some day in the near future, our politicians will have to face up to the 800 lb. gorilla in the room.
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HUFFPOST SUPER USER
frank day
Obama cares about all of U.S.
05:18 PM on 08/07/2011
You don't know a damn thing about the issue.

I'd educate you but I have work to do.

Google is your friend.
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OMEGA MAN
A wise man learns from the mistakes of others.
02:44 PM on 08/07/2011
The surpluses Clinton left for Bush were enough to pay off the entire US debt by the time that the Social Security/M­edicare trust funds would have to be amortized for beneficiar­y payments, all without having to raise taxes to pay for the amortizati­on of those trust funds. The surplus Bush inherited was made up almost entirely of excess payroll taxes building up the trust funds. Bush took those excess payroll tax receipts and gave them “back” as income tax reductions­, heavily weighted to the wealthy–wh­o didn’t create those surpluses in the first place. By doing this, Bush guaranteed that taxes would have to be raised in order to amortize the trust funds. The failure to do so simply permits the Republican­s to steal the money contribute­d by workers for their retirement­. Everything about not raising taxes or limiting expenses, is about stealing our money.
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undertheinfluence
POW in my own home country
05:45 PM on 08/07/2011
F&F for you, and, i hope, a lightbulb moment for many others.
HUFFPOST SUPER USER
LLeGrande
A Proud Liberal Democrat.
02:24 PM on 08/07/2011
Another point about Social Security:

Social Security has NEVER added one cent to the Federal Deficit.

Social Security has NEVER added one cent to the U.S. Public Debt.

And it won't do either of those any time soon - certainly not during the lifetime of the baby-boomers.
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OMEGA MAN
A wise man learns from the mistakes of others.
02:42 PM on 08/07/2011
Social Security cannot add to any debt by law.
05:16 PM on 08/07/2011
The SS trust fund has been spent by past congresses. It consists of treasury bonds that can only be replenished by deficit borrowing. Last year, SS payments exceeded revenues by $42 billion and the SS deficit will only grow as more babyboomers retire. SS is expected to add to the deficit ad infinatum.
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08:58 PM on 08/07/2011
Fine if that's your finding. But remember WE HAD NOTHING TO DO WITH THAT WE HAVE PAID INTO IT DONT YOU GET IT?????
HUFFPOST SUPER USER
LLeGrande
A Proud Liberal Democrat.
11:44 PM on 08/07/2011
For 2010, receipts into the Social Security Trust Fund (tax collections) exceeded disbursements (Social Security payments) by about $90-billion.

For 2010, the U.S. Treasury paid interest (on the bonds of the U.S. owned by the Social Security Trust Fund) to the Trust Fund in the amount of about $108-billion.

There is NO Social Security deficit. If disbursements exceed receipts, then some of the bonds are redeemed - and the U.S. Treasury would have to replace those borrowings on the public marketplace, and those bonds would then be owned by individuals or other governments, including China, Japan, and the UK.

Here a link - see for yourself:

http://www.ssa.gov/OACT/STATS/table4a1.html
HUFFPOST SUPER USER
LLeGrande
A Proud Liberal Democrat.
02:20 PM on 08/07/2011
Why is everyone FAILING to tell the truth about Social Security? Here are some factual truths, and I'll give you a link to see for yourself:

At the end of 2010, the Social Security Trust Fund had a POSITIVE BALANCE OF $2.4-TRILLION. For the calendar year 2010, Social Security Trust Fund receipts (tax collections) exceeded disbursements (Social Security payments) by $90-billion.

That $2.4-trillion is loaned to the U.S. Treasury, and, like China, has received Treasury Bonds for these loans. For 2010, the Social Security Trust Fund received about $108-billion in interest payments from the U.S. Treasury.

If nothing is done for the next 25-years, only then will Social Security start running out of cash. It will have turned those bonds into cash, and the Treasury would have to finance those bonds elsewhere, like China, the UK, and Japan - the major holders of our Public Debt. In short, THERE ARE NO PROBLEMS WITH SOCIAL SECURITY FOR A QUARTER CENTURY. But, at any time, a simple fix would make Social Security secure for a century. It happened to Medicare some years ago: lift the ceiling of the current $107,000 to unlimited earnings.

Will anyone speak up for Social Security? How about you, Senator Feingold?

Here's the link - see for yourself:

http://www.ssa.gov/OACT/STATS/table4a1.html
05:20 PM on 08/07/2011
And where do you think the money will come from to cash in the treasury bonds....from more deficit borrowing of course. The trust fund is just a bunch of IOU's. It's not like a bank account stashed away somewhere. Feingold cannot speak up as you suggest because he would be lying.
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HUFFPOST SUPER USER
skylark
Tangled up in blue..
08:12 PM on 08/07/2011
If it's a bunch of IOU's that's because the money for Social Security, money working people have contributed all their working lives, was stolen. It should be replaced immediately. And there should be no talk about benefits being cut, or no COLA's, because Seniors' savings were stolen from them. Al Gore was right about the "lock box".
HUFFPOST SUPER USER
LLeGrande
A Proud Liberal Democrat.
11:35 PM on 08/07/2011
The answer to that is quite simple: These bonds owned by the Social Security Trust Fund get redeemed when they come due - as is necessary to pay benefits.

These redeemed (private) bonds must then be refinanced in the open market - and for the amounts redeemed, the new bonds issued become part of the Public Debt in the hands of the public - individuals or governments.

The Trust Fund has the U.S. Treasury Bonds in a 'lock box' - shown during the administration of George W. Bush.

It is similar to what happens when shares of stock are sold. No physical shares change hands - only book entries effect the transfer. The physical shares are locked up on a vault about 6-levels below ground in sealed containers in very large denominations.

My statements are true, and Mr. Feingold can say it. Senator Bernie Sanders says it regularly. Senator Harry Reid has said on multiple occasions that 'Social Security is not up for discussion - there's nothing wrong with it now or any time soon'.
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08:59 PM on 08/07/2011
Thanks you seem to have some brains regarding this but the Media and others in Congress will not present these facts.
02:07 PM on 08/07/2011
And Nancy Pelosi is right-- there has to be "super 12" transparency or else we will have another last minute manufactured crisis to force legislation that does not benefit the middle or lower class
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HUFFPOST SUPER USER
skylark
Tangled up in blue..
08:14 PM on 08/07/2011
Right. There will be more "Shock Doctrine" lies and manufactured crises designed to subvert and destroy the middle class.
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HUFFPOST SUPER USER
Untainted Love
01:38 PM on 08/07/2011
I wish Feingold would have given a little more accurate history on Super Committees. This is the 19th time such committees have been formed, in almost all cases their purpose was simply to circumvent minorities in Congress who were insisting on unreasonable legislation. History has shown the committees are a fast track to tax increases not spending cuts.

Just an aside in case Feingold reads these comments: if America was worth saving, the day the Patriot Act was declared unconstitutional every member of Congress who voted for it would have been arrested, thrown in jail and put on trial for sedition. You would have had the Senate chambers all to yourself.
01:26 PM on 08/07/2011
Russ! Russ! Please run for President! Give me a reason to vote *for* someone again!
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tnkeating
Dyslexic agnostic insomniac
01:05 PM on 08/07/2011
One would think the bigger threat would be the congressional thieves that have taken SS funds and left IOUs without ever replacing the money, SS, Medicare, and Medicade reform doesn't bother me, I have already made the age cut but really never expected to see it, even twenty years ago. The best thing to remember from this is that we ( the voter ) are in fact term limits. Please write or call your career congressmen or senators and tell them not to bother to run again, and if they do vote for anybody but them.
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HUFFPOST SUPER USER
joyfulworld
Happy Progressive
12:55 PM on 08/07/2011
We can only hope someone, like the ACLU for instance, will stand against this illegal new branch of our government! I never voted for or against having any sort of Super Congress! I don't think you did, either! It's not legal, any results it might come up with won't be legal, we're facing years and years of fighting in the courts over this idiocy. Maybe the Far Right should re-read the Constitution and this time make an attempt to actually understand it! The Constitution was written for the People...not for the corporations!!!
01:26 PM on 08/07/2011
.
The whole personhood thing started back in 1886; it was a clerk's side notes on a
court ruling out of California that started the ball rolling so that
corporations are legally considered "persons". Thom Hartmann wrote an
entire book about it called "Unequal Protection"
01:45 PM on 08/07/2011
The corporations have been granted personhood.They are legally considered persons.Thom Hartmann wrote a book called Unequal Protection.Read it.
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HUFFPOST SUPER USER
Kimberly Hunter
03:58 PM on 08/07/2011
Actually they are Super-Persons. They have more rights and more influence than American citizens
12:36 PM on 08/07/2011
What can be done..? Form a group under someone's e-mail..? The only thing that the rich will respect,are numbers..? March on Washington..to share our pain,with a rally.To let them know we the people are sick and tired of their greed,and lack of responibilty to the people.I remember Kent state,Kenndy,Martin Luther King,the rich don't care who they put down.Who wants to stand at the front of the line..?
10:50 AM on 08/07/2011
Why are we going along with this ? Why not a huge outcry, is it even constitutional to have this super committee? I want the committee eliminated not sit around and hope that they will elect progressives, we all know they will not. Can we take a stand here folks? For one thing do not vote for anybody that voted for the super committee.
10:42 AM on 08/07/2011
One dollar sent to SSA = one dollar purchased in interest bearing government securities. The dollar is spent by Congress and one dollar plus interest is incurred in debt by the American taxpayer. When someone goes on Social Security, the government security is cashed in and the taxpayer has to foot the bill. So, the taxpayer pays for Social Security twice plus interest and Congress can blame everything on the taxpayer for wanting their retirement (entitlement) benefits. That is why Congress is made up of the best and the brightest (or the most cunning) in our capitalist society.
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jambi77
swordfish
09:25 AM on 08/07/2011
The nefariousness of this congress just gets better and better every day, month, year....

JFK once told the press that it was the keeper of man's conscience...and that it was their job to point out the wrongs in government....

today the US msm is nothing more than...the former USSR's...Pravda....
08:52 AM on 08/07/2011
It's funny how government services become "entitlements" when right-wingers don't want to pay their fair share for them. Social Security is a fully funded, efficient public savings program. It's not SS recipients' fault that politicians stole their benefits money to spend on unnecessary wars and other dubious projects. All those funds must be fully repaid -- and let's get rid of that ridiculous 106 K cap on income taxable under Social Security. Also, why are Medicare and Medicaid described as "entitlements"? Are police and fire departments entitlements? Is public water service an entitlement? Is the Pentagon an entitlement? They all are crucial government services.
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HUFFPOST SUPER USER
skylark
Tangled up in blue..
08:18 PM on 08/07/2011
Thank you for posting the truth, along with questions that some might not like. Fanned and faved.