George Allen, the Republican candidate for U.S. Senate, writes on the challenges facing Social Security in the years ahead.
Throughout my public service, I’ve understood that leadership is about setting priorities and then finding others to agree on accomplishing those goals for the people of Virginia. As Governor, I worked with a legislature controlled by Democrats to set priorities from reforming education to cutting taxes to establishing welfare to work to better help people succeed in life. And I believe that is the same kind of leadership we need in Washington today to strengthen Social Security for future generations.
This week, my opponent Tim Kaine published an opinion article on Social Security. There are areas in which we agree, including that Social Security is a crucial part of our nation’s commitment to securing seniors’ provision and protection from poverty. We agree that Social Security is not a handout but a program people have paid into their entire working lives, and we must ensure that Social Security provides them the benefits they have earned.
But the Social Security program faces significant challenges that require proven leadership to work with both parties for real solutions to preserve this vital program for future generations. Since 2010, Social Security has been paying out more in benefits than it receives in taxes. President Obama’s own fiscal reform commission (Simpson-Bowles) warned that “Unless we act… demographic changes will bring the Social Security program to its knees [and] the benefits currently pledged under Social Security are a promise we cannot keep.” The 2012 Social Security Trustee Report estimates that the Social Security Trust Fund will be depleted in 2033, three years earlier than projected last year.
To protect the viability of Social Security for future generations, we cannot ignore simple logical reforms to address these issues. Political games aimed at distorting records and tarring ideas for constructive solutions are irresponsible and unfair to the people. We need civil engagement as the basis of any efforts to save Social Security.
One of the most important things we can do to protect Social Security is to work together to get our economy moving and create jobs. More Americans working means more Americans paying into Social Security.
Further, Americans should have additional freedom to choose to invest their hard-earned dollars for their retirement security.
In his opinion article, Tim Kaine goes to great lengths to blame others and provides no solutions for Social Security, but we do know where Tim Kaine stands on Medicare. Unfortunately, as national chairman of the Democratic Party, he was a vocal advocate of the health care tax law he called a “great achievement” and proclaimed it “would be a great thing politically for the Dems.” A recent Congressional Budget Office report revealed the law could take over $700 Billion from Medicare to help pay for it.
Virginians deserve better. That is why I am running for the U.S. Senate. I bring a proven record of bipartisan work and landmark reforms to the office and will be the voice of seniors and hard-working Americans for the benefits they have earned.
When I was Governor we removed the Virginia tax on Social Security benefits, saving Virginia taxpayers millions of dollars and helping older citizens on fixed incomes live more comfortable and secure lives. This is a far different approach than my opponent who tried to raise taxes on people earning as little as $17,000 a year and is now proposing raising the payroll tax cap, which would increase taxes on working people and small business owners.
This election is our opportunity to choose our future. We can embrace a path of positive solutions or follow the tired demagoguery of false accusations and scare tactics leading to failure.
As my father Coach George Allen would say, “The future is now.” I hope you’ll join me in choosing an American Comeback on November 6.
George Allen is the 67th governor of Virginia and a candidate for U.S. Senate.
John Farrell
9:57 am on Thursday, August 16, 2012
More misinformation from Governor Macaca
1) Since 1986, employers and employees have been paying higher rates of FICA in preparation for the day when the baby boomers would start retiring and benefits would outstrip FICA receipts
2) if the Bush privitization initiative, which the noose hanger and Confederate flag devotee recycles here, had passed in 2005, imagine how many retirees' benefits would have been wiped out in the crash of '07-'08.
Social Security is intended to assure a basic level of benefits retirees, their survivors (rich kid Paul Ryan used Social Security survivor benefits to pay for college where he fell in love with Ayn Rand) and the disabled.
John Bogle, the founder of Vanguard, advises that the Social Security should serve as the bond portion of a balanced retirement portfolio and that workers should used their 401k and IRA to take more risky investments in indexed stock funds to enhance their retirement savings.
If the FICA cap were eliminated, benefits could be increased, not cut, and the FICA tax rate could be cut. Millionaires should not be let out of their FICA duty in February every year.
the-stix
7:32 pm on Thursday, August 16, 2012
I agree with Allen when he said, "This election is our opportunity to choose our future. We can embrace a path of positive solutions or follow the tired demagoguery of false accusations and scare tactics leading to failure." John Ferrell are you listening?
John Farrell
8:09 pm on Thursday, August 16, 2012
First, spell my family name correctly please, Mr Anonymous. It was earned in battle 998 years ago and we're quite proud of it, thank you .
Nothing in your quote of Governor Macaca's empty pablum is worthy of consideration. And there is nothing false, demogogic or a scare tactic in my comment.
the-stix
9:56 am on Friday, August 17, 2012
Insomuch as “privitization” is not even on the table for Social Security in this election cycle, just the act of bringing it up is an example of what Allen suggested as “tired demagoguery” and scare tactics. What the nation needs is a comprehensive look at our entitlements that are driving us toward bankruptcy. The rote left-wing mantra, in this case of simply lifting the FICA cap (aka tax the rich) and burying ones head in the sand to modernizing benefits of this 75 year old program is simply not enough.
And btw, you need to lighten up on my simple misspelling of your name. I note that even you do not spell it as in the glory days 998 years ago that you cite. To show how big I am, I will forgive your "intentional insult" of calling me something entirely different than my registered name in this forum.
John Farrell
1:17 pm on Friday, August 17, 2012
The only demogoguery and misinformation is from you, "troll who is afraid to name himself," and your hero, Governor Macaca.
Facts are terrible things, as Mr.Franklin. Social Security contributes nothing to the deficit. It's fully funded through 2033 and whenever the Republicans stop obstructing and allow the economy to recover, that date will extend out to 2037 or later. It is the single most effective and successful program in the history of the Federal government. And the most popular.
Yes, Uí Fhearghail is the ancient Celtic spelling but "Farrell" is the spelling used most often today, in County Longford, the clan sept. And I'll thank you to show the proper respect, Sir, or I will be forced to inquire as to the identity of your seconds in order to defend the family honor.
the-stix
7:41 pm on Friday, August 17, 2012
You say Social Security contributes nothing to the deficit? Think again!
You are quick to call folks snarky names, but the fact is that the some $200 billion will have been borrowed by the end of this fiscal year just to make benefit payments. And that may increase (if Obama gets his way) and will be on top of the $8.6 trillion 75 year unfunded liability.
Bottom line, our national entitlements need to be fiscally reconciled to the real world. Regretfully, most Democrats are simply whistling past the grave yard contrary to the nations best interest, and because they are drinking too much Dem Party Kool Aid, imo.
John Farrell
8:24 pm on Friday, August 17, 2012
100% of current benefits are paid for through 2033 according to the system's independent auditors. Even after that, with no change in the FICA cap benefits can be paid to 85% of current benefits indefinitely.
Eliminating the FICA cap makes Social Security fully funded indefinitely, allows an increase in benefits and a reduction in the FICA rate.
Your numbers are the product of a fantasy that have no basis in fact, Mr. Brave Anonymous.
Stella McEnearny
2:33 pm on Thursday, August 23, 2012
Agreed. And Virginians deserve much better than the judgment of Gov. Macaca, which I find wanting.
pete
8:47 pm on Thursday, August 16, 2012
So how much money out of other people's pockets do you think is enough to pay for your notion of what is fair? Personally I'm fed up with paying my way and paying the way for so many others because people like you insist you have a right to what isnt yours.
By the way you spelled privatization incorrectly.
I'm named after St. Peter which I am quite proud of.
John Farrell
9:52 pm on Thursday, August 16, 2012
Since I stop paying FICA in June, July or August depending on how my small business is doing, I'm advocating for a tax increase for myself and my company as well as the millionaires.
The equity argument is not about general equity but on the fact, based on actuarial reports, that millionaires are more likely to collect their Social Security benefits than blue collar workers who never get a FICA holiday. Millionaires are also likely to collect those benefits longer than truck drivers and auto mechanics who never get a FICA holiday.
Because the FICA tax is not progressive, i.e., it doesn't increase as you make more money, its regressive. Cutting the FICA rate therefore, benefits blue collar workers and their employers and makes higher new workers less expensive. That's why President Obama cut the FICA rate.
The correct spelling of my family's name was immediately above Mr. Anonymous I's comment, Mr. Anonymous II. So misspelling my family name when it's right in front of Anonymous I is an intentional insult, especially when you realize that "ferrell" is an old way to spell the word for a domesticated animal that has returned to the wild. Your name is a shortening of the Latin word for "rock." We're they referring to your head when they gave it to you? ;-)
As to my misspelling, thanks for the correction but this is a blog comment not a term paper.
Uncle Smartypants
9:59 am on Friday, August 17, 2012
"That is why I am running for the U.S. Senate." No, you are running because that is all you do. Look at this racist's resume. Rich kid, started running for office two years out of law school, trading on his name. Career Politician who has done NOTHING. Look at Tim Kaine's resume. Hero of the lower class. Kaine actually has accomplishments. Kaine has actually made this world and this commonwealth a better place through his own efforts. Gov Macaca turns my stomach; I wish he would just go away.
pete
10:39 am on Friday, August 17, 2012
It must be so easy to be a liberal! Take what doesn't belong to you. Give it others and make it seem it is their right to get it. Get them to become dependent on handouts in exchange for their votes. Pat yourself on the back for your "accomplishment" and demonize those with opposing views.
John Farrell
1:34 pm on Friday, August 17, 2012
Not nearly as easy as to be a conservative: Every man for himself and the devil take the hindmost.
Social Security is an obligation to our parents and grandparents to see that they don't end their days in abject poverty.
Even the arch-conservative Bismark championed the wisdom in government paid old age pensions 130 years ago.
pete
10:48 am on Friday, August 17, 2012
And where does this lead.....class warfare, envy, stagnant economy, and eventually an impoverished society.
The alternative....... celebrate, respect, incent success.
certainly create a safety for those truly in need and misfortunate, but create the incentive for everyone's self=sufficiency.
John Farrell
1:43 pm on Friday, August 17, 2012
Ayn Rand could not have written it better herself.
pete
4:12 pm on Friday, August 17, 2012
John
Quoting old dead guys is so impressive (sic). Defending an out of date, unaffordable social security program based on old quotes is laughable.
There are many other more realistic ways to ensure our parents and grandparents don't end their days in abject poverty with stealing from our children.
This attitude that the Social Security program should be perpetuated as is is irresponsible.
Politicians that have the courage to acknowledge this are should be applauded, not denigrated.
l
John Farrell
8:26 pm on Friday, August 17, 2012
Name 10 programs that would be more cost effective than the current Social Security system!
the-stix
1:07 pm on Friday, August 17, 2012
When Governor in 2005 Kaine inherited $1.2 billion surplus, yet he left Virginians with a $4.2 billion dollar shortfall when he left office. In addition, he increased Virginia’s debt by nearly 50% and he continues to stand by President Obama’s failed policies that has given us $16 trillion in debt, 9.3% unemployment and 1.5% GDP growth.
Further, he did little for NoVa transportation problems, other than to give full authority to the MWAA to unilaterally establish Dulles Toll Road rates without any state or local veto power. As a result tolls are projected to triple within 5 years and quadruple to nearly $9 in 10.
Tax, tax, tax was Kaine’s guiding principle.. typical liberal! Good thing he didn't always get his way, or we would stilll be in trouble today rather than having a budget surplus this year under Mc Donnell.
John Farrell
8:40 pm on Friday, August 17, 2012
McDonnell's "surplus" is the direct product of him taking money from the State employees retirement fund. Pay it back!
And the "surplus" becomes a deficit.
Kaine signed the repeal of the estate tax.
It was the down-state Republicans in the General Assembly and several from NoVa who refused to pay for roads in No Va.
The national unemployment rate is 8.2% and thank to Federal Employment in NoVa and Hampton Roads Virginia's is down to 5+%.
The only way to get out of the liquidity trap that we've been in since 2007 is with government spending. Japan refused to do it when they fell into just such a trap in 1990 and they're still have an anemic economy: men who graduated college in the '90's still don't have steady employment; are unmarried and, now in their 40's still living with their parents. Without a significant infrastructure program during the next 4 years, we face a similar future.
As for taxes, here in Va., the Mars family, the richest family in Va., pays the same 5.75% nominal income tax rate as the kid flipping burgers at McDonald. Yeah, that makes lots of sense! No wonder there's not enough money for roads, public schools and universities in this state.
Skip Endale
4:16 pm on Friday, August 17, 2012
I could never vote for Macaca just like I cannot vote for someone that hires illegals and then lobbies for immigration reform. But that shouldn't stop the paid bloggers, the robo calls and the professional liars from spreading their gospel.
the-stix
6:06 am on Saturday, August 18, 2012
It is true that the Social Security Trust Fund is large enough to pay current benefit levels until 2033. However the Trust Fund is not a cash account but rather a promissory note from the US Treasury. Therefore anything Treasury pays back into Social Security must come from the nations general revenue sources.. taxes including income, borrowing or printing new money.
As of 2010 Social Security is paying more in benefits that they are collecting, with the difference being made up by the US Treasury. They are borrowing from places like China to help pay for todays benefits.
The US Treasury will continue to pay from general revenue income until the Trust Fund is totally depleted (estimated today in 2033) , at which time Social Security income will only be enough to pay for 76% of today’s promised benefits.
Social Security is broken and Democrats today including Obama and Kaine are ignoring the problem. Fixes will only get harder as time goes on, to be sure. At least Allen is calling for a “civil engagement to save Social Security”. The first step to a solution is admitting a problem!
John Farrell
7:20 am on Saturday, August 18, 2012
Wrong again, he who if afraid to disclose his true identity,
Since 1986 employees and employers have been paying a higher FICA so that the Social Security Trustees could buy US Treasury bonds, the safest investment in the world, to build a surplus in anticipation of the retirement of the baby-boomers.
That plan is working today. Yes, the benefits being paid out are greater than the FICA receipts being paid in and the difference is made up by selling the bonds bought over the last 26 years. A prudent pension management plan.
Those bonds would have to be paid whether the current year's Federal budget was in surplus or deficit.
The Social Security Trust Fund will never be totally depleted when FICA is constantly being paid into that account.
No one denies that it would prudent to address the 2033 problem today.
There are only two solutions: cut benefits which is the Catfood (Simpson-Bowles) Commission solution or raise revenue which is the idea behind the proposal to eliminate the FICA cap.
Privitization is a money grab by Goldman Sachs and the other investment banks to get management fee income off the Social Security surplus. You remember those guys. They're the ones who brought you the subprime mortgages crisis and the '07-'08 economic collapse. No way anyone wants to trust their retirement safety net to that bunch of banksters.
Besides Bush tried it in 2005 and no one in Congress would hold a hearing on the bill.
the-stix
9:00 am on Saturday, August 18, 2012
US Treasury bonds are the “safest investment in the world” and that is why when the Treasury sells them to get cash to pay Social Security back, investors such as China buy them and expect to be paid back. At that time what we owe our creditors that bought those bonds becomes part of our national debt.
The debt is $16 trillion now and the Trust Fund is valued at $2.7 trillion. We are borrowing between 40-50% to pay for our deficits today.
Your statement “The Social Security Trust Fund will never be totally depleted” is nonsense as long as the current Social Security program remains as is. The current estimate for zero balance is 2033.
“A prudent pension management plan” as regulated by the Feds requires a cash reserve. The Social Security Trust has no cash reserve, and therefore is not a prudent plan. It is a slush fund designed for Congress top spend every penny.
No one except you and other left wing demagogues are even talking about “privitization” either out of ignorance or as a political scare tactic.. take your pick.
And btw, Bush is not running for office this time around. Time for all left-wingers to admit that Obama has been running the country now for nearly four years, and for the first two, Democrats have controlled the Congress as well. His policies have FAILED!