The details are slowly leaking out, but GOP proposes new formula for COLA (55, social security)
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4:40pm EST, slowly details of the Republican's counter proposal to Obama's plan announced the other day include:
A. Raising the retirement age to 67.
B. Using a new formula to calculate the COLA. (You better believe the math won't help anyone, unless it somehow lowers the COLA received by the very rich and keeps everyone else's the same)
Last edited by howard555; 12-03-2012 at 03:13 PM..
Beware. Raising the retirement age would only be practical in view of what would be good for citizens if additional protections were also utilized to protect working senior citizens. A working senior citizen is anyone over the age of 62 or even before according to my young manager.
4:40pm EST, slowly details of the Republican's counter proposal to Obama's plan announced the other day include:
A. Raising the retirement age to 67.
B. Using a new formula to calculate the COA. (You better believe the math won't help anyone, unless it somehow lowers the COA received by the very rich and keeps everyone else's the same)
Beware. Raising the retirement age would only be practical in view of what would be good for citizens if additional protections were also utilized to protect working senior citizens. A working senior citizen is anyone over the age of 62 or even before according to my young manager.
If you were born 1960 or later then your full retirement age is 67.
So to raise it to 67 means they will hit the older workers.
The ones who typically are targeted for layoffs and can't find new jobs due to age discrimination.
Bascially I think no matter what we are goig to have to see chnages i SS or result in what trusteees have said with estimated 30% drop in benefits across the board. Obama cut 500 billio for medicare i new healthcare bill .His cliff proposal has more cuts in medicare.No matter what they say they will makeup for in savings it has consequences if eve sucessful which is doubtful lokig at savings record in bill scoring.Kick the can down the road and atke big hit or take smaller by doig it sooner with reform is what I see coming. N surprise because the Breaux commison addressed this before and nothing was done but kick the can.
4:40pm EST, slowly details of the Republican's counter proposal to Obama's plan announced the other day include:
A. Raising the retirement age to 67.
B. Using a new formula to calculate the COLA. (You better believe the math won't help anyone, unless it somehow lowers the COLA received by the very rich and keeps everyone else's the same)
There's nothing wrong with Social Security that eliminating or raising the cap on earnings wouldn't fix.
Currently, Social Security can pay out 100% of anticipated benefits until 2037, and 75% of anticipated benefits until 2084. Raising the cap on earnings could extend the period of 100% benefits for decades without resorting to either raising the retirement age or using a different COLA formula.
And it probably needs to be said that Social Security does not add a dime to the federal deficit. It can only pay out what it takes in via taxes plus any accrued interest.
Raising the retirement age and switching to a more stingy COLA formula are solutions to a problem that doesn't exist.
Cola is calculated based upon wage inflation although many economists say it should be based upon good/services. Since the federal government does a questionable job in tracking either, is this really a big deal? They will set a rate each year and defend it regardless of calculation accuracy.
Beware. Raising the retirement age would only be practical in view of what would be good for citizens if additional protections were also utilized to protect working senior citizens. A working senior citizen is anyone over the age of 62 or even before according to my young manager.
So many people get laid off close to retirement, for obvious reasons. The gap in safety for seniors will now span more years. This could prove a huge logistics problem in other areas as more and more apply for disability, SSI, foodstamps, and other social service help. The money is just going to go out from a different department, with no real change in expenditure and a whole lot more federal red tape dealing with the safety gap.
Regardless of what the politicians on either side of the aisle do, NOTHING is going to work until they finally come-up with the courage and will to actually slow-down and cut SPENDING! Raising taxes, extending the qualifying age for full SS and/or recalculating COLA's only postpones the inevitable need to cut spending.
The cost-cutting solution is painfully obvious ... to anyone who runs a simple household budget, but, this misguided (and often corrupt) bunch can't seem to wean themselves from constantly looking for new ways to 'spend money' (aka: 'buy votes'). Unfortunately, the only thing the COLA recalculation or 67-age provision and other stop-gap measures do, is allow the politicians to maintain the pretense that they are actually doing something to really solve our horrific economic mess!
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