Obama Stands Firm On Protecting Social Security In 2016 Budget

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On Monday, President Obama unveiled his fiscal year 2016 budget proposal. Obama’s budget outlined a wide range of proposals likely to be popular with middle-class Americans, and unpopular with Congressional Republicans. Progressives concerned about the President buckling to GOP pressure to weaken social security can also take comfort. The White House appears determined to stand firm on protecting social security retirement and disability funding. Obama’s budget proposes clean reallocation of funds from the Old-Age and Survivors Insurance (OASI) trust fund to the Disability Insurance (DI) trust fund.

This clean reallocation would put Obama at odds with GOP House leaders, especially Republican House Budget Committee Chairman Tom Price. Price, and other GOP leaders, have signaled their intent to pit retirees against the disabled. The conflict between the two groups could be stirred up, to force a crisis over Social Security, which Republican lawmakers could then exploit to push privatization schemes.

The White House provided a vigorous defense for social security in Monday’s budget proposal, arguing:

The President believes that Social Security is indispensable to workers, retirees, survivors, and people with disabilities and that it is one of the most important and successful programs ever established in the United States. Although current forecasts indicate that Social Security can pay full benefits until 2033, the Administration is committed to making sure that the program is solvent and viable for the American people, now and in the future, and the President has laid out key principles to achieve this objective. Any reforms should strengthen retirement security for the most vulnerable, including low-income seniors, and should maintain robust disability and survivors’ benefits that protect workers and their families after they have paid into the system. The administration will oppose any measures that privatize or weaken the Social Security system and will not accept an approach that slashes benefits for future generations or reduces basic benefits for current beneficiaries.

To address reserve depletion of the Social Security Disability Insurance (DI) Trust Fund, the Budget proposes to reallocate existing payroll tax collections between the Old-Age and Survivors Insurance (OASI) and DI trust funds while a longer term solution to overall Social Security solvency is developed with the Congress. At various points over the course of Social Security’s history, Congress has passed reallocation legislation as the need arose for reallocating revenue from DI to OASI, and vice versa. This proposed reallocation will have no effect on the overall health of the OASI and DI trust funds on a combined basis and is critical to ensuring that workers who have paid into the Social Security system and become disabled get the benefits they need.

In doing so, President Obama has declared that he intends to fight for both retirees and the disabled. He has dropped the gauntlet, and let Republicans know that he has no intention of weakening the program for either retirees or those on SSI disability. The program, as it currently exists, is solvent until at least 2033. Raising the cap on taxes for high-income social security earners would make it solvent for much longer. There is no reason to curtail existing benefits. Nor is there any logical reason to cut disability benefits. Republicans hope to generate a social security crisis, but President Obama has declared that he has no desire to indulge them in their privatization fantasies.

9 Replies to “Obama Stands Firm On Protecting Social Security In 2016 Budget”

  1. Now, if they could just raise the salary cap for SS contributions (currently at $118,500), then SS will be solvent for the next 50 years.

  2. Thank God we have President Obama. The entire country would be so screwed right now if we had a Republican president there may be no coming back. Plus can you imagine two more Koch Supreme Court justices. Lindsay Graham just said if he gets to be president he would nominate Trey Gowdy for supreme court, plus troops in Syria. They hate everything that is good and hate all people, money and power are all they are about.

  3. As for taxation limitation to $118,500.00, look closely at the deductions, exclusions, exceptions and limitations above the 1040 long form Adjusted Gross Income line. Only the super-rich and their tax accountants and lawyers can take advantage of these deductions, exclusions, exceptions and limitations. Corporations have been allowed to Dodge, Shelter, Hide, Exempt, Maneuver & Manipulate their share of Taxes for years because of the Billions in Campaign Contributions they’ve given to our Corrupt Congress’s past and present. Remove the cap from all wages and other forms of income to include investment income from all sources. This would standardize equitably and proportionally taxation on all citizens across the board and include millionaires and billionaires. Look for candidates who espouse Tax Code corrections in favor of the middle class like Obama has called for. Register and vote until this malacy is fixed! Your vote counts locally, at the state and federal level. Git ‘r don…

  4. lmfao, now lets see how long it taken for our favorite republican TROOLS like Miss @charlie to clime in with their typical frank luntz / FUK NEWS bullshit! listen, it’s not the democratic party creating phony scandals about social security going broke!! it’s your beloved GOP pushing that lie. But since the VAST majority of todays republicans are receiving social security, I’m sure they’ll be just tickled “PINK” when homies cut off their income by 20%!!!

  5. I like what the President said about Social Security and Social Security Disability Insurance. Remember to VOTE for the next president in 2 years and VOTE Democrat because if we get a Republican President and a Republican Congress, I fear for us all. Also remember in 2 years that we get to also vote for seats in Congress that will become available. Vote Democrat there to so we can at least get the Senate back again to go along with the new Democratic President.

  6. Social Security is a huge ponzi scheme, but to protect the money that is there, people need to get serious about the fraud going on in the Disability realm. The government needs to have lawyers, not just government workers challenge these cases as they are submitted.

    Where do people think the money to support these programs is going to come from?

  7. Damn, yes, what the country needs is lawyers making $250 an hour on duty to prevent all these scheming cripples and old people from being able to buy ketchup and mustard at the same time.

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