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BS Alert: Code Red for Social Security or Koch Scare Tactics

January 27, 2011

54 million Americans receive Social Security benefits. Sixty-four percent of seniors – nearly 22 million Americans – depend on Social Security for most of their livelihood.

The NCPA is not the friend of everyday Americans. The National Center for Policy Analysis, is an American non-profit conservative think tank. The NCPA states that its goal is to develop and promote private alternatives to government regulation and control. Topics include reforms in health care, taxes, Social Security, welfare, education and environmental regulation.

The NCPA was founded in February 1983 by British businessman Antony Fisher and Dallas businessmen Russell Perry (CEO of Republic Financial Services), Wayne Calloway (CEO of Frito-Lay), John F. Stephens (CEO of Employers Insurance of Texas), and Jere W. Thompson (CEO of the Southland Corporation).

According to Greenpeace, NCPA is a climate change-denial front group funded by large corporations such as ExxonMobil and Koch Industries.

Ha! Ha! The billionaire Koch brothers again. These John Birch lovers are ever trying to realign the wealth tables in this country of ours. Here is their oh-so logical rhetoric on Social Security:

Neither the public nor the private sector are ready for the 78 million baby boomers retiring over the next 20 years. The unfunded liability of Social Security and Medicare exceeds $107 trillion — 6.5 times the size of the United States economy. Social Security and Medicare are on an unsustainable course and reform is urgently needed.

NCPA proposals would replace pay-as-you-go entitlement programs with funded programs, under which each generation pays its own way. Individuals should have the opportunity and information needed to build their personal retirement savings.

Privatizing Social Security Would be a Gift to Wall Street

The Koch Brother and the NCPA specialize in disinformation, meaning lies and obfuscation. These folks just can’t wait to redirect your Social Security contributions into Wall Street where their masters, the banking oligarchs, will play with it the way they played with trillions of dollars of 401ks, mutual funds, credit default swaps, mortgage backed securities, and collateralized debt obligations that led to Global Collapse of 2008. Why on God’s green Earth would we want to do that?

That said, the CBO today did release a report that there will be a shortfall, BUT…. once the United States increases employment, contributions will rise again. That’s what is not being said. Numbers can be shoved around. We know certain things. If you are employed right now you are paying 2% less into your Social Security. That reduction will be affective for over the next two years as part of the The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that President Obama signed on Dec. 17, 2010.

According to Rep, Rush Holt (D) New Jersey:

The White House says that the long term solvency of Social Security will not be affected because it will replace from the general treasury fund the $112 billion of revenue lost by the 2 percent tax reduction. But that is just the problem. In Social Security’s history such a commingling of payroll taxes and money from the Treasury is unprecedented.

Here’s a way to handle the problem. Keep the mechanism of Social Security intact. Make any changes within the system of Social Security. If the President wants to reduce revenue to Social Security, even a 2 percent reduction for a year or two, then he can make up the lost revenue for those years by raising the cap on wages taxed for Social Security.

Right now, Social Security payroll taxes are capped at the first $107,000 of income, so that a high school principal making just over six figures and a Fortune 500 CEO making more than $1 million pay the same amount of money into Social Security each year: $6,622. By lifting this cap to the appropriate level in concert with this payroll tax holiday, Congress can preserve and protect Social Security.

So thankfully, we do have people watching out for the solvency of Social Security. But, we also have persistent folks like the greedy Koch brothers and the NCPA looking for every opportunity to lie about the solvency of Social Security in order to access the funds and privatize the system. We must remain vigilant as this is our money collectively for the betterment of retirees, the poor, and disabled.

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