AARP Signs Off On Key Obama Tax Cut Provision

[DemocratSinceBirth]

WASHINGTON -- The country's foremost senior-issues advocacy organization on Friday night lent its support to a critical provision of the president's tax cut deal with Republicans.

In what could prove to be a consequential assessment of "the framework," AARP's Executive Vice President John Rother says that both he and his organization have determined that a two percentage point reduction in the payroll tax rate (from which Social Security gets its revenue) would not endanger the solvency of their community's cherished program.

Critics of the tax cut deal have raised concerns that the even though the holiday is structured to be in place for just one year, lawmakers would feel compelled to extend the policy well beyond that, in the process endangering Social Security's finances


http://www.huffingtonpost.com/2010/12/10/aarp-obama-tax-cut-deal_n_795285.html

[John Q. Citizen]

1. AARP is an insurance company, right? Didn'y they support Romney care too?

[DURHAM D]

2. Exactly - if they are for something I am against it. nt

[xxqqqzme]

5. Their primary cororate concern is

health insurance. If they think this is a good idea, then opposition feels right. AARP has morphed into a grand astroturf scam. People actually pay for membership to it!. When they supported "Plan D' and sold it over and over in letters, ads in the magazine and newsletters, I told them to remove me from their list and cancel my membership.

[Enogero]

3. fascists

[avaistheone1]

4. An endorsement by the AARP does NOT impress me at all.

The AARP is essentially a storefront for United Health Care who pays their CEO over $124 million dollars to deny health care to policy holders.

[ProSense]

6. The Congressional Black Caucus also proposed a payroll tax holiday

Congressional Black Caucus opposes Obama on tax-cut package

<...>

In outlining the CBC's objections to the package, Lee said that the "vast majority" of CBC members are opposed to the estate tax provision and the extension of the tax cuts for the wealthy and are worried that the spending cuts that could follow the package might hit the poor especially hard.

"We understand that there are tough choices that will need to be made next year and we are extremely concerned that the cuts that could be made should this package pass would disproportionately hurt the poor and low-income communities and further erode the safety net," Lee said.

The CBC's counter-proposal showed few signs of members giving up ground. The proposal includes a two-year extension of the Bush-era tax cuts for the middle class -- which was part of the tax-cut measure that the House passed this month -- as well as a payroll tax holiday and a 13-month extension of unemployment insurance benefits. All three components are priorities for congressional Democrats.

CBC members said that their plan would cost less than half of what the plan negotiated by Obama and Republicans would cost and create about the same number of jobs.

<...>

[avaistheone1]

7. Even a former Reagan economic expert say this republican poison pill will undermine/ destroy

Social Security. Sounds like the Black Caucus did not do its homework on this issue. All that glitters is not gold.

Today, I just want to ask one question:What are the odds that Republicans will ever allow this one-year tax holiday to expire? ...if allowing the Bush tax cuts to expire is the biggest tax increase in history, one that Republicans claim would decimate a still-fragile economy, then surely expiration of a payroll tax holiday would also constitute a massive tax increase on the working people of America. And what are the odds that the economy won't still be fragile a year from now? Zero, I would say.

... But a payroll tax holiday is Pandora's Box and best left unopened. Republicans would prefer to destroy Social Security's finances or permanently fund it with general revenues than allow a once-suspended payroll tax to be reimposed. Arch Social Security hater Peter Ferrara once told me that funding it with general revenues was part of his plan to destroy it by converting Social Security into a welfare program, rather than an earned benefit. He was right.

He explains all the economic reasons why a payroll tax holiday is a bad idea in this Forbes article, but the political reason to avoid it is more important. Many powerful people have been trying to destroy Social Security and their best chance is to convince people that it is in crisis and unsustainable. A short payroll tax holiday undermines the funding and an extended payroll tax holiday will destroy the program. When we have to come back hat in hand asking for general fund money to replace the lost revenue, Republicans will claim the program is too expensive and radically alter it.

http://www.dailykos.com/story/2010/12/7/926342/-Why-a-Payroll-Tax-Holiday-Could-Destroy-Social-Security

[ProSense]

8. There is nothing wrong with a payroll tax holiday

that doesn't touch Social Security (the current tax holiday is covered by the general fund) or is offset by increasing the payroll tax threshold. Robert Reich, in his post criticizing the deal, advocated a payroll tax holiday:

<...>

The solution is to reorganize the economy so the benefits of growth are more widely shared. Exempt the first $20,000 of income from payroll taxes, and apply payroll taxes to incomes over $250,000. Extend Medicare to all. Extend the Earned Income Tax Credit all the way up through families earning $50,000. Make higher education free to families that now can’t afford it. Rehire teachers. Repair and rebuild our infrastructure. Create a new WPA to put the unemployed back to work.

<...>

[avaistheone1]

14. I find nothing in your post or Reich's article where he is suggesting

a payroll tax holiday is a good idea.



However, a separate issue Reich proposes is applying payroll taxes to incomes over $250,000. That particular idea I do support.

[mikekohr]

16. Your posts are reasoned, sourced, and well thought out.

We need more people like you posting on this board. Keep up the good work.

[DemocratSinceBirth]

9. It's Hard To Keep Up Here

When a Republican praises something Obama does it means the action is bad because a Republican likes it. And if a Republican criticizes something Obama does it means it's bad too...

[FrenchieCat]

11. Obama's just bad according to those you mentioned......

from all sides.

[MattSh]

21. Reagan and economic expert...

Talk about a oxymoron.

[Autumn]

10. Wow, how unimpressive that is,

I always tear up everything they send us.

[DemocratSinceBirth]

13. I'll Mark You Down As Underwhelmed

Thank you.

[Autumn]

15. Is there a completely and totally

Underwhelmed box? I would prefer that one.

[mtnsnake]

12. Who's the lady in red in those AARP ads selling better sex for a lifetime videos?

I'm only asking because I'm wondering if she's a Democrat or not. She looks so....happy. :evilgrin:

[Raine]

17. That's all I need to know that it's

TOTAL CRAP ... nothing but a shill insurance group. I remember how they signed on with chimp and everyone got taken for a ride ... like they really care about seniors. x(

edit: added word

[Greybnk48]

18. AARP is not what it once was. It's an Insurance Corp.

that is not on the side of seniors, but on the side of money.

[TacticalPeek]

19. Fuck AARP.

Prescription benefit sell-outs.

[ProfessionalLeftist]

20. AARP is a corprat shield - not to be trusted.

These idiots supported the Medicare Rx drug program. Doughnut hole and all.

Pfft. Credibility = 0.

[GeorgeGist]

22. and pigs can fly.

AARP is a sham.