AFGE Statement on Simpson-Bowles Deficit Reduction Plan

FOR IMMEDIATE RELEASE:
February 19, 2013

Contact:Tim Kauffman
202-639-6405/202-374-6491
kaufft@afge.org

AFGE Statement on Simpson-Bowles Deficit Reduction Plan

WASHINGTON – American Federation of Government Employees National President J. David Cox Sr. today issued the following statement on the latest rehash of the failed deficit reduction proposal from ex-Senator Alan Simpson and Morgan Stanley Director Erskine Bowles:

Mr. Simpson and Mr. Bowles seem to have missed the fact that America had an election last November and that voters overwhelmingly rejected the regressive and idiotic ideas they were peddling on behalf of their corporate masters. We rejected more tax cuts for corporations and the wealthy. We rejected cuts in Social Security and Medicare benefits. We rejected taking away earned retirement benefits from public employees. We rejected an accelerated race to the bottom for the middle class and the working poor. Continue reading “AFGE Statement on Simpson-Bowles Deficit Reduction Plan”

Does President Obama Want to Cut Social Security by 3 Percent?

https://i2.wp.com/www.sanders.senate.gov/images/structure/bg-header.jpgDoes President Obama Want to Cut Social Security by 3 Percent?

Monday, 17 September 2012 09:56 By Dean Baker, Truthout | News Analysis

Source: Truth-out.org

September 17, 2012

That is a pretty simple and important question. Unfortunately, most voters are likely to go to the polls this fall without knowing the answer.

If the backdrop to this question is not immediately clear, then you should be very angry at the reporters who cover the campaign. One of the items that continuously comes up in reference to the budget deficit is President Obama’s support for the plan put forward by the co-chairs of his deficit commission, Morgan Stanley director Erskine Bowles and former senator Alan Simpson. On numerous occasions, President Obama has indicated his support for this plan.

One of the items in the Bowles-Simpson plan is a reduction in the annual cost-of-living adjustment of roughly 0.3 percentage points. This would be accomplished by using a different index that, by design, would show a lower measured rate of inflation. It is important to recognize that this is an annual cut that would accumulate over time. After a retiree has been receiving benefits for ten years, the cut would be 3.0 percent; after 20 years. it would be 6 percent. If a typical retiree lives long enough to get benefits for 20, years the average benefit cut over their years of retirement would be 3 percent.

Continue reading here.