Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Recursion

(56,582 posts)
Fri Aug 21, 2015, 12:28 AM Aug 2015

Another reason I support O'Malley: his Social Security plan

Last edited Fri Aug 21, 2015, 04:58 AM - Edit history (2)

http://martinomalley.com/wp-content/uploads/2015/08/OMalley-Retirement-Security.pdf

TL;DR:

1. Increase benefits for all recipients

EDIT: thanks to Jim Lane for clarifying:

2. Take FICA levies from incomes in excess of $250K / year

3. Raise the minimum wage to $15 / hour (this will also increase FICA levies)

EDIT: forgot this important one:

3a. Enact comprehensive immigration reform to get currently under-the-table labor "on the grid"

4. Set a minimum SS benefit "floor" at 125% of the Federal poverty line

5. Change the bend-points to increase the benefits for the bottom two brackets (wonky, yes, but a great idea)

6. Change the CPI to the CPI-E (this is a brilliant idea; feel free to ask me about it if you want a long, nerdish answer)

7. Count up to five years of elder or child care as time worked at the previous wage for the purpose of calculating benefits (if you haven't guessed, I really like this one)

8. Veto any legislation that raises the retirement age at all.

This is a fucking awesome plan for Social Security.
6 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Another reason I support O'Malley: his Social Security plan (Original Post) Recursion Aug 2015 OP
lifting the cap on the payroll tax for workers earning more than $250,000! elleng Aug 2015 #1
And a CPI that captures rising health care prices and rent Recursion Aug 2015 #2
Two biggest ones that I am really impressed by askew Aug 2015 #3
Clarifying about the cap Jim Lane Aug 2015 #4
Ah, thanks, I had the numbers backwards in my head Recursion Aug 2015 #5
Another great plan. K&R. n/t FSogol Aug 2015 #6

elleng

(130,974 posts)
1. lifting the cap on the payroll tax for workers earning more than $250,000!
Fri Aug 21, 2015, 12:32 AM
Aug 2015

Count up to five years of elder or child care as time worked at the previous wage for the purpose of calculating benefits!

Recursion

(56,582 posts)
2. And a CPI that captures rising health care prices and rent
Fri Aug 21, 2015, 01:50 AM
Aug 2015
http://www.bls.gov/opub/ted/2012/ted_20120302.htm

The CPI-E is an alternative way of calculating inflation that reflects actual spending patterns by elderly Americans. In general, they spend less on food and transportation, and more on housing and medical care, than younger Americans; the CPI-E reflects that and results in higher CPI increases, particularly when health care and housing prices go up.

In the past 30 years, the CPI-E has risen 3.2% per year on average whereas the ordinary CPI-U has only risen 2.9% per year on average. This means that $100 in 1985 adjusted by the CPI-U to today would be $236, while adjusted by the CPI-E it would be $257 -- a full 8% higher.

askew

(1,464 posts)
3. Two biggest ones that I am really impressed by
Fri Aug 21, 2015, 02:02 AM
Aug 2015

are counting 5 years of child/elder care credit and changing to CPI-E as a better means to track cost of living increases. That makes so much sense because the costs are so different for elders with the # of meds they take, etc.

O'Malley isn't just giving us the standard talking points that every Dem says when they run for office. He is putting out thoughtful, progressive policy.

So, damn proud to be a supporter of his.

 

Jim Lane

(11,175 posts)
4. Clarifying about the cap
Fri Aug 21, 2015, 04:51 AM
Aug 2015

Your summary includes:

Lift the FICA levy cap from $250,000 (not sure whether the proposal is to remove it altogether or raise it to something higher)


The current cap (for 2015) is $118,500, according to this SSA fact sheet. Some people have proposed removing the cap altogether. Others have argued that this would create hardship, especially for those at the lower range of affected workers. (Somebody making $120,000 a year may not seem deserving of much sympathy to those of us far lower on the income scale, but a lot of them have high mortgage payments and other such expenses and would feel a pinch.)

O'Malley is embracing a common compromise proposal of creating a "doughnut hole" in taxable earnings. Everyone would pay FICA tax on the first $118,500 of earnings (with this cap amount presumably continuing to go up year by year, pursuant to the CPI, as under current law). Remaining earnings up to $250,000 would be exempt. Any earnings over $250,000 would again be subject to the FICA tax.

I'm sure that's what he means by saying, per your link, "Governor O’Malley supports lifting the cap on the payroll tax for workers earning more than $250,000."
Latest Discussions»Retired Forums»2016 Postmortem»Another reason I support ...