Tags: social security | tax | increase | amac

AMAC Slams Bill to Raise Social Security Taxes

By    |   Saturday, 21 Mar 2015 07:33 PM

A proposal introduced by House Democrats this week to cut the Social Security deficit will only raise taxes on working Americans — especially seniors, the founder of the Association of Mature American Citizens told Newsmax on Saturday.

"It’s crazy to confiscate more money when businesses are having enough trouble and workers are having enough trouble getting by right now," said Dan Weber, who established the advocacy group in 2007. "They've done nothing to decrease the tax on seniors.

"This reminds me of Obamacare," he added. "They go out and put in a bill, and they haven't thought through the consequences of what they're doing.

"They mean to do well, but it winds up hurting us."

Connecticut Democratic Rep. John Larson introduced the legislation on Wednesday that seeks to lower Social Security taxes, increase benefits for current and future recipients and shore up the overall system.

"Social Security remains the nation’s bedrock retirement program and provides vital protection for the disabled and those who have lost a loved one," Larson said. "Many Americans, however, do not believe it will be there for them when they retire."

Larson called the bill "a common-sense path forward … that not only strengthens benefits now but ensures Social Security will be here through the next century."

The legislation was co-sponsored by 54 other Democrats and was endorsed by two Social Security citizen's advocacy groups.

Perhaps what has Weber most alarmed is Larson's plan to calculate future benefits on the CPI-E index, a form of the monthly Consumer Price Index developed by the U.S. Bureau of Labor Statistics that is used to measure inflation.

The CPI-E measures costs for those 62 and older, accounting for such expenses as medical care, housing, doctor and hospital bills, food, and gas.

Weber told Newsmax that seniors would lose money if Larson's bill used that index because the cost of some of the major components have not risen as quickly as others in recent years.

"If they adopt the CPI-E, we'll lose an increase in the CPI," he said.

Weber acknowledged that Larson's bill will shore up Social Security overall through the increased taxes, but said it fails to address the core issue: Most Americans do not have enough money saved for retirement.

"I'm surprised that they haven't tried to fix the real problem," he said, noting that as many as 50 million Americans have no retirement plan beyond Social Security — and that pays an average benefit of $14,000 per year.

"That is ridiculous. Who can live on $14,000 a year? We have to encourage people to save more."

AMAC — with offices in Florida, New Mexico and New York — has proposed that Congress establish an Early Retirement Account (ERA) that would give workers the option of saving additional funds through regular payroll deductions for their later years.

"The early retirement account will allow people to take their money, put it into a private investment — and it will still be under Social Security," Weber told Newsmax.

The funds would be available at age 62 and could provide retirees with as much as $500,000 when they stop working.

"The only thing they're doing is taking our money away from us," Weber said. "They think they know better. That's a shame that their thought process is 'the government knows better than the people.' "

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A proposal introduced by House Democrats this week to cut Social Security deficit will only raise taxes on working Americans - especially seniors, the founder of the Association of Mature American Citizens told Newsmax on Saturday.
social security, tax, increase, amac
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2015-33-21
Saturday, 21 Mar 2015 07:33 PM
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