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amborin

(16,631 posts)
Mon Apr 11, 2016, 05:15 PM Apr 2016

HRC Favors Means Testing Social Security, So, Too, Does Paul Ryan


Hillary Clinton on Social Security Expansion: Words are Wind. A Cold Wind.

October 21, 2015 by Lambert Strether

snip

Here’s the baseline for the left on Social Security. From The Nation:

With boomers retiring without pensions or adequate savings, progressives have proposed expanding Social Security benefits ….......... Clinton, like all Democratic candidates, will promise to protect Social Security, but will she support expanding it?


Let’s start with the caveat that with Hillary Clinton, as with Bill Clinton, you’ve always got to parse the words......

snip

Sen. Hillary Rodham Clinton said that when it comes to fixing Social Security, “putting everything on the table is not an answer. Raising the retirement age is not an answer. Cutting benefits is not an answer.” This article incorrectly summarizes her as saying cutting benefits or raising the eligibility age were “off the table.”

(You have to read that passage a few times to see that although cutting benefits and raising the retirement age each by themselves might not be “an” answer, taken together they might be “the” answer. See how easy?)


snip

With that caveat, this post will focus on Clinton’s views of what Wilhelm I’s “well-grounded claim to care from the state” by elders might mean to Clinton in practice, if it does not mean Social Security expansion.

First, I’ll present Clinton’s views from her campaign site, the campaign trail, and the Democratic debate; then I’ll contrast those views to other political figures (Warren and Sanders); and finally I’ll drive some trucks through the loopholes in Clinton’s words.

Clinton’s Views on Social Security Expansion

From the Clinton campaign site:

“We need to make sure what we already do, like Medicare and Medicaid and Social Security, to provide a level of security and support for people, continues to work really well.”

Throughout her career, Hillary has spoken out for seniors and stood up for Medicare and Social Security, and she is committed to preserving, protecting and strengthening these lifelines for today’s seniors and for future generations. Seniors have paid into these programs for a lifetime, and they’ve earned those benefits[4] when they retire.

On Social Security, Hillary Clinton has stood firmly against Republican efforts to privatize the program and weaken it for our seniors. She believes that we should enhance—rather than roll back—Social Security, especially for women.

As president, Hillary will defend against the efforts to privatize Medicare and Social Security, and will work to enhance both programs for our most vulnerable seniors.

What do words like “provide a level of security and support,” “work really well,” “preserving, protecting and strengthening,” and “will work to enhance” mean operationally?

Do you see the word expansion there? Because “enhance” could mean just about anything, right? (And mentally mark down the underlined words “especially for women,” and “our most vulnerable” for later use.)

At a New Hampshire roundtable discussion (April 20, 2015):

“Let’s just take a deep breath here as a country and say, ‘OK, we are going to have a retirement issue and people who worked hard deserve to have enough security when they retire so they can have a good quality of life.’ So I’m 100 percent committed to that,” Mrs. Clinton said.


What do words like “enough security” and “good quality of life” mean operationally? What exactly is Clinton “100 percent committed” to? If not expansion, what?


From a campaign spokesperson clarifying Clinton’s views after that roundtable (April 20, 2015):

[Talking Points Memo] had previously asked the Democratic presidential candidate’s campaign about her position on Social Security —whether she supported expanding it as liberal Democrats have been arguing recently or what she thought of proposals like some of the likely Republican 2016 field.

Spokesman Jesse Ferguson responded, “Hillary has a record of fighting against privatizing Social Security and opposing cuts to seniors benefits and, as she said yesterday, dealing with challenges facing older Americans is a top priority for her.”


“Opposing cuts” doesn’t mean expansion. And what on earth does “dealing with challenges facing older Americans,” a “top priority,” mean?

And from the first Democratic debate (October 13, 2015):

CLINTON: Well, I fully support Social Security. And the most important fight we’re going to have is defending it against continuing Republican efforts to privatize it.

BASH: Do you want to expand it?

CLINTON: I want to enhance the benefits for the poorest recipients of Social Security. We have a lot of women on Social Security, particularly widowed and single women who didn’t make a lot of money during their careers, and they are impoverished, and they need more help from the Social Security system.


And I will focus — I will focus on helping those people who need it the most. And of course I’m going to defend Social Security. I’m going to look for ways to try to make sure it’s solvent[5] into the future.


What do words like “fully support” and “defend” mean? Do they mean “expand”?

I’m guessing no, since Clinton could have answered “Yes” to the moderator who asked her the direct question


snip

Other Views on Social Security Expansion

Before giving my own interpretation of Clinton’s views, let’s look at what some other political figures have to say.

Elizabeth Warren (2013):

Seniors have worked their entire lives[6] and have paid into the system, but right now, more people than ever are on the edge of financial disaster once they retire — and the numbers continue to get worse.

That is why we should be talking about expanding Social Security benefits — not cutting them. Senator Harkin from Iowa, Senator Begich from Alaska, Senator Sanders from Vermont, and others have been pushing hard in that direction. Social Security is incredibly effective, it is incredibly popular, and the calls for strengthening it are growing louder every day.


Indeed. Senator Sanders from the Democratic debates (October 13, 2015):

My view is that when you have millions of seniors in this country trying to get by — and I don’t know how they do on $11,000, $12,000, $13,000 a year — you don’t cut Social Security, you expand it. And the way you expand it is by lifting the cap on taxable incomes so that you do away with the absurdity of a millionaire paying the same amount into the system as somebody making $118,000. You do that, Social Security is solvent until 2061 and you can expand benefits[7].


And Sanders shows what an effective defense of Social Security looks like (October 12, 2015):

snip

So Warren and Sanders are quite clear on expansion; Clinton, to be charitable, is not. In fact, her words are a cold wind, as we shall now see.


Issues with Clinton’s Views on Social Security

To begin, remember the words I asked you to mentally mark down? (To review: “especially for women,” “our most vulnerable”, “the poorest recipients,” “they need more help” and “those people who need it the most.”)


Think about it: They all imply that Clinton wishes to introduce Social Security benefits that are defined using eligibility requirements (“especially,” “most vulnerable,” “poorest”, “need”).


That is, Clinton proposes to convert Social Security from a universal program of social insurance to a welfare program. This is a poisoned chalice that will destroy Social Security as we know it. Social Security should not be means-tested:

Medicare and Social Security are not handouts to the needy.

They are not even intended to be a safety net. In their design, they promote the fundamental notion that dignity and good health in old age are not special privileges that can be bestowed or taken away. They are fundamental rights that every working American who has contributed productively to the economy can expect to enjoy. As James K. Galbraith told me in an email, “It’s insurance, not charity.”

Make no mistake: If means-testing on the wealthy is allowed, conservatives will keep pushing until that same means-testing is applied to the middle class, who increasingly must rely on Social Security and Medicare in times of economic uncertainty and job insecurity.

Even the Democratic think tank Campaign for America’s Future calls Social Security means-testing a Trojan Horse:

What alarmed Social Security activists is that underneath Clinton’s positive language [in the Democratic debate] – “fully support,” “enhance” – appears to lie support for policies, including from leading conservatives like Pete Peterson – that would actually undermine Social Security.

Rep. Paul Ryan (R-Wis.), the House Ways and Means Committee chairman who is being wooed to take over as House speaker, was broadly attacked for proposing a plan that singled out Social Security’s “poorest recipients” for protection.

Ryan proposed “progressive price indexing” that would reduce benefits for the top 70 percent of wage earners while maintaining benefits for the bottom 30 percent. When Ryan first proposed this in 2010, coupling this with a plan to divert Social Security funds into stock market accounts, the Center for Budget and Policy Priorities concluded that ‘the result would be a system in which Social Security is very unattractive to affluent people … These changes would risk undermining the broad-based support that Social Security now enjoys'”

snip

http://www.nakedcapitalism.com/2015/10/hillary-clinton-on-social-security-expansion-words-are-wind-a-cold-wind.html
34 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
HRC Favors Means Testing Social Security, So, Too, Does Paul Ryan (Original Post) amborin Apr 2016 OP
means testing is the quickest way to destroy SS. hollysmom Apr 2016 #1
WTO may require benefits be portable between countries because of services Baobab Apr 2016 #28
Good article! And, yes, we must always remember - the Third Way hates Social Security, and will djean111 Apr 2016 #2
K&R Dragonfli Apr 2016 #3
Why Would This "revelation" Surprise Anyone? CorporatistNation Apr 2016 #33
One way never to be surprised by anything a centrist says, or what one intend to to Dragonfli Apr 2016 #34
You know in your heart she will, if given the chance, make a deal that will hurt our Social Safety highprincipleswork Apr 2016 #4
Still the GOldwater Girl Ferd Berfel Apr 2016 #5
K&R CharlotteVale Apr 2016 #6
Once they can successfully compromise the universality of Social Security, NorthCarolina Apr 2016 #7
Very scary farleftlib Apr 2016 #8
SS is already "Means Tested" and has been since 1983. Does Bernie doc03 Apr 2016 #9
well that was Bill Clinton who imposed that earlier form of means testing: amborin Apr 2016 #15
The OP in their own words is guessing what she means and interpreting her words doc03 Apr 2016 #18
would HRC un-do the kind of means testing that Bill Clinton implementd? NO. But she will amborin Apr 2016 #22
still no answer! you want Bernie to cancel the 1st means testing tax that Bill Clinton levied on SS amborin Apr 2016 #27
I haven't heard anyone address that issue other than of all people doc03 Apr 2016 #30
Hillary can work with republicans because she has voted with them many times; amborin Apr 2016 #31
Bernie has been in Washington for decades, has he ever tried to eliminate that tax doc03 Apr 2016 #32
I'm damn worried about Social Security tabasco Apr 2016 #10
A fusion ticket to defeat all those people who just want more free stuff? Karmadillo Apr 2016 #11
So I point out the "Means Testing" that already exsists for SS and doc03 Apr 2016 #12
please see my reply to you, above. amborin Apr 2016 #17
This pisses me off to no end Carolina Apr 2016 #13
She should run in the party she "fits" with, the GOP pdsimdars Apr 2016 #14
Not one comment from a Hillary supporter Avalon Sparks Apr 2016 #16
Why Progressive Groups Have A Problem With Clinton On Social Security w4rma Apr 2016 #19
K & R AzDar Apr 2016 #20
She never said that. You're just putting words into her mouth. n/t pnwmom Apr 2016 #21
she effectively said it; she did not say she would expand it, yet she had many opportunities to answ amborin Apr 2016 #23
K & R John Poet Apr 2016 #24
Well Barack Obama was going to give this to the Republicans for a Grand Bargain so why would HRC be Nanjeanne Apr 2016 #25
If you hang with Pete Peterson, there's no way I'll trust you on Social Security. Sorry Hillary. Scuba Apr 2016 #26
Really excellent post. She knows how to phrase in a way where it is hides the agenda. EndElectoral Apr 2016 #29

hollysmom

(5,946 posts)
1. means testing is the quickest way to destroy SS.
Mon Apr 11, 2016, 05:19 PM
Apr 2016

this is how it works, if everyone gets SS, than everyone has a vested interest in it, if only the poor get it, then well, it becomes another entitlement to be cut.
Not to mention, the means test becomes lower and lower and then there is an excess of SS so that surely can go into the general fund that will allow taxes to be cut for the "job creators" or as I like to call it, the "jobs exporters"

Baobab

(4,667 posts)
28. WTO may require benefits be portable between countries because of services
Tue Apr 12, 2016, 11:00 AM
Apr 2016

liberalisation.

This has come up several times recently in the recent negotiations over GATS Mode Four.

You do know about that, don't you?

Services is everything you cant drop on your foot so potentially it could effect a LOT of jobs.

 

djean111

(14,255 posts)
2. Good article! And, yes, we must always remember - the Third Way hates Social Security, and will
Mon Apr 11, 2016, 05:24 PM
Apr 2016

keep snipping at it until it is gone. The usual bullshit is that "paying out less will preserve it" - never a thought towards raising the cap. Plus, you know, they corporations hate the matching funds, and Wall Street wants to gamble with the funds and take nice juicy admin fees.

If not for Monica Lewinski, Clinton and Gingrich would have privatized Social Security. But the optics were bad or something.

Yeah, I'm gonna line up behind this sort of bullshit. No, I am not.

Dragonfli

(10,622 posts)
34. One way never to be surprised by anything a centrist says, or what one intend to to
Wed Apr 13, 2016, 10:26 AM
Apr 2016
Is to actually read the marketing tools for right wing policy that is the entire purpose of the third way, her talking points are right out of their playbook.

They have produced several "reports" and "recommendations" all of which she has mirrored one way or another.

Search their site for "social security"
 

highprincipleswork

(3,111 posts)
4. You know in your heart she will, if given the chance, make a deal that will hurt our Social Safety
Mon Apr 11, 2016, 05:30 PM
Apr 2016

in general and Social Security and Medicare in particular.

 

NorthCarolina

(11,197 posts)
7. Once they can successfully compromise the universality of Social Security,
Mon Apr 11, 2016, 05:48 PM
Apr 2016

then they will be free to make other changes to the program at will.

doc03

(35,348 posts)
9. SS is already "Means Tested" and has been since 1983. Does Bernie
Mon Apr 11, 2016, 06:31 PM
Apr 2016

support eliminating the tax on SS benefits? If not he is in favor of "Means Testing". The same goes for Medicare it is
also "Means Tested" once you reach a certain income Medicare premiums increase.

amborin

(16,631 posts)
15. well that was Bill Clinton who imposed that earlier form of means testing:
Mon Apr 11, 2016, 09:34 PM
Apr 2016
A sly tax

A second change during the Clinton administration created another level of tax on benefits. This increased the percentage of benefits subject to taxation from a maximum of 50 percent to 85 percent.

From the start it was a sly tax.

In its first year, it was expected to affect only 3 percent of all retirees. The formula for the taxation of Social Security benefits, however, is one of the few items in our miserable tax code that is not indexed to inflation.

As a consequence, an estimated 30 percent of all retirees now pay some amount of tax on their benefits.

Ultimately, that tax will take back much of the benefits that accrue above the second bend point for higher-income workers. In other words, most of the employment tax paid on wages over about $55,488 a year will bring little benefit to workers because much of it will be taxed away.

All of this is history. It all happened before our slippery friends in Washington started dealing with “entitlement reform.” Soon they will start talking about changing the formula for future benefits and other sneaky ways to reduce — or further “means-test” — benefits.

snip

http://www.dallasnews.com/business/columnists/scott-burns/20130112-few-understand-that-social-security-is-already-means-tested.ece


but Hillary has in mind a more severe form of means testing, as described in the OP.

So, are you fine with this?

doc03

(35,348 posts)
18. The OP in their own words is guessing what she means and interpreting her words
Tue Apr 12, 2016, 12:11 AM
Apr 2016

to suit the Sanders platform. As I said SS has been "Means Tested" since 1983 when Ronald Reagan started taxing up to 50%
SS benefits then Clinton expanded that to 85%. Medicare is also "Means Tested" when people with higher incomes pay more
for the same benefits. So if Bernie Sanders is opposed to "Means Testing" he should propose eliminating that tax first
for us retirees before making promises to expand it. I saved every cent I could in a 401K so I would have more income in retirement
but being I am single have a moderate pension I had to pay just shy of $4000 tax on the $12000 I withdrew from my IRA for home improvements last year. To help minimize those taxes I transferred some of my traditional IRA into a Roth a few years ago
then the next year I had to pay double for Medicare because I fell into what they consider high income. The basis for those taxes were
set back in 1983 and have never been adjusted for inflation, eventually anyone that gets any income in addition to SS will taxed at 33% or more depending on the state they live in. So if Bernie is honest about being against means testing fix that first otherwise it is bullshit.

amborin

(16,631 posts)
22. would HRC un-do the kind of means testing that Bill Clinton implementd? NO. But she will
Tue Apr 12, 2016, 01:28 AM
Apr 2016

implement means testing in its commonly understood sense. Bernie wants to prevent that, and also expand Social Security.

Sounds as if you would be negatively affected by HRC's plans, too, so you might want to be cautious about supporting her.

amborin

(16,631 posts)
27. still no answer! you want Bernie to cancel the 1st means testing tax that Bill Clinton levied on SS
Tue Apr 12, 2016, 10:53 AM
Apr 2016

but why don't you want HRC to do this, too?

doc03

(35,348 posts)
30. I haven't heard anyone address that issue other than of all people
Tue Apr 12, 2016, 06:46 PM
Apr 2016

Rush Limbaugh. That tax wasn't 1st levied by Bill Clinton it was Reagan. When Clinton raised that tax from 50% to 85%
Limbaugh harped about it for 8 years. This country was much more conservative back in those days, that was all what was
called the Reagan Revolution. Besides that Bernie has no chance getting any results. Hillary Clinton can work with Republicans and actually get something done.

amborin

(16,631 posts)
31. Hillary can work with republicans because she has voted with them many times;
Tue Apr 12, 2016, 06:52 PM
Apr 2016

plus, you seem to be saying that, even though you say Reagan first levied a tax on Soc Sec, it's OK that WJC increased the tax from 50% to 85%. Is that what you are saying? So you are saying that Clinton acted just like Reagan. And, yes, I agree, he did. But that is OK with you?

Bernie absolutely DOES have a GREAT chance of implementing his programs and plans. He was very successful as a senator.

You say you are dependent upon Soc Sec, yet you are willing to risk it with a vote for HRC?

doc03

(35,348 posts)
32. Bernie has been in Washington for decades, has he ever tried to eliminate that tax
Wed Apr 13, 2016, 07:07 AM
Apr 2016

or raise the income threshold for that tax? Has he ever tried to eliminate the increase of Medicare premiums for higher incomes or raise the income level? If not he doesn't oppose Means Testing. Something has to be done with SS and Medicare and as long as nothing is done the more people will get hurt. We have had a Democrat in the Whitehouse for the last 7 years and nothing has been done.
Has Bernie ever attempted to eliminate the income ceiling on SS, I mean as a Senator not campaign rhetoric? Maybe he has I really don't know.

doc03

(35,348 posts)
12. So I point out the "Means Testing" that already exsists for SS and
Mon Apr 11, 2016, 07:56 PM
Apr 2016

Medicare in post #9. But nobody agrees so I assume they are not really against "Means Testing" except
as a talking point to use against Hillary Clinton. If Bernie would address that issue I would be inclined to
vote for him.

amborin

(16,631 posts)
17. please see my reply to you, above.
Mon Apr 11, 2016, 09:35 PM
Apr 2016

She intends another, additional form of means testing. What issue is it you want Bernie to address? You want him to roll back the taxes that Bill Clinton snuck in?

Carolina

(6,960 posts)
13. This pisses me off to no end
Mon Apr 11, 2016, 08:15 PM
Apr 2016

I have been paying into SS for 36 years and hope to retire in another 2, possibly 3 years. That -------- who used gov't positions to enrich herself and others like her who are on the gov't teat with high six figure salaries and perks like excellent tax-payer funded healthcare and a revolving door to make more money as lobbyists are clueless about the lives of everyday people.

Now, more than ever, I am for a revolution against DINOs like HRC and repukes. My Bern enthusiasm just became that much greater!

Avalon Sparks

(2,566 posts)
16. Not one comment from a Hillary supporter
Mon Apr 11, 2016, 09:34 PM
Apr 2016

Not a comment on disputing this
Or a comment why they support


This and other fiscal policy and war hawking they never have anything to say, ever

But hundreds on comments on pope gate.

 

w4rma

(31,700 posts)
19. Why Progressive Groups Have A Problem With Clinton On Social Security
Tue Apr 12, 2016, 12:13 AM
Apr 2016

Hillary Clinton refuses to rule out any and all benefit cuts to Social Security, angering leading progressive groups that have not endorsed a candidate in the Democratic primary — and prompting a new challenge from Bernie Sanders.

The issue has arisen as Clinton and Sen. Bernie Sanders (I-Vt.), her remaining rival for the Democratic presidential nomination, debate who has stronger progressive bona fides and progressive groups call for a red-line pledge not to cut benefits.

A Clinton aide instead referred The Huffington Post to the statement on Social Security on the campaign’s website, which says the former Secretary of State will “oppose closing the long-term shortfall on the backs of the middle class, whether through benefit cuts or tax increases.”

http://www.huffingtonpost.com/entry/clinton-sanders-social-security_us_56b3f533e4b01d80b245c04e?x33anhfr

amborin

(16,631 posts)
23. she effectively said it; she did not say she would expand it, yet she had many opportunities to answ
Tue Apr 12, 2016, 01:31 AM
Apr 2016

answer that direct question; further, she detailed her plans, and those plans are tantamount to means testing. They are the definition of means testing, in the term's commonly understood usage.

Nanjeanne

(4,961 posts)
25. Well Barack Obama was going to give this to the Republicans for a Grand Bargain so why would HRC be
Tue Apr 12, 2016, 05:52 AM
Apr 2016

any different?

 

Scuba

(53,475 posts)
26. If you hang with Pete Peterson, there's no way I'll trust you on Social Security. Sorry Hillary.
Tue Apr 12, 2016, 08:38 AM
Apr 2016

EndElectoral

(4,213 posts)
29. Really excellent post. She knows how to phrase in a way where it is hides the agenda.
Tue Apr 12, 2016, 11:45 AM
Apr 2016

In a way it's admirable the way she uses language often by saying what she won't do.

She won't privatize. Well, name me a democrat who would?

We won't raise age as a solution, nor will we cut benefits as a solution. As you say, she could simply say neither is a solution, but in combination they are the solution.

She says she is looking into raising the cap. silence since.

She only talks about expansion for widows and single women who are impoverished. First the issue with widows. They are entitled to the higher wage earners social security at time of their spouse's death, so a widow essentially gets her husbands social secuirty amount. But beside that HRC is using gender as a test of scoring points focusing on "impoverished women." Why not all "impoverished" persons? Social security is supposed to be a safety net for all people. Should gender be like a means test? What about men incarcerated their whole lives, or disabled veterans, or those with life threatening diseases, or American Indians? It's a slippery slope to begin this dividing of benefits based on means or genders tests. The only one I think is fair, is that anyone earning social security BELOW the poverty level should receive a benefit to make up the difference, so the impoverished are at least truly provided a safety net.

She makes no real mention of revising the COLA to benefit seniors, or of expanding benefits for all.

She parses her words with something like this, "Seniors have paid into these programs for a lifetime, and they’ve earned those benefits when they retire." This is a Republican phrasing. Essentially, it says "if" you have paid in ALL your life and you are a Senior you qualify. However, if you are not a Senior or have not paid into the program for a lifetime, than you may not be eligible. Republicans have been saying they are fine with "current Seniors" getting their benefits. Clinton has pledged the same, but not for future generations. Her sentence SHOULD read - All people who pay into these programs should and will earn benefits when they retire." Simple enough and shorter. Instead, the phrasing is very careful.

Again, appreciate the post. Not sure a lot of Americans notice the subtle parsing of language.

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