David Cay Johnston: Social Security is not ‘going broke’

May 6, 2012

Posted by AzBlueMeanie:

A couple of weeks ago I warned you about An annual ritual of spring: 'The sky is falling! The sky is falling!':

The Arizona Republic today published an annual ritual of spring, the gloom and doom forecasts for the social security and Medicare trust funds. Social Security heading for insolvency even faster. The sky is falling! The sky is falling!

First, you need to keep in mind that there is an entire cottage industry in conservative circles that has sought to do away with the social security and Medicare trust funds since the funds were first established.

* * *

And then there are the media enablers of this conservative opposition to social security and Medicare.

Like the Arizona Republic. Right on cue, the Republic last Saturday (4/28) fulfilled its role as a cog in the right-wing noise machine by publishing this "the sky is falling!" editorial opinion on the social security and Medicare trust funds. Hard choices have to be made.

At least the Republic stopped short of endorsing Rep. Paul Ryan's "Roadmap to America's Ruin" that proposes to turn Medicare into a coupon voucher system to purchase private health insurance plans, and the GOP dream of privatizing social security into individual retirement investment accounts so the banksters of Wall Street can rip you off and leave you destitute remains alive.

As I previously posted above regarding the Medicare trust fund, Sarah Kliff at Ezra Klein's WonkBlog tells everyone to take a deep breath and chill, Reports of Medicare’s death are greatly exaggerated.

Now let's hear from a tax expert, David Cay Johnston, on the social security trust fund. Social Security Is Not Going Broke: 

Which federal program took in more than it spent last year, added $95 billion to its surplus and lifted 20 million Americans of all ages out of poverty?

Why, Social Security, of course, which ended 2011 with a $2.7 trillion surplus.

That surplus is almost twice the $1.4 trillion collected in personal and corporate income taxes last year. And it is projected to go on growing until 2021, the year the youngest Baby Boomers turn 67 and qualify for full old-age benefits.

So why all the talk about Social Security “going broke?” That theme filled the news after release of the latest annual report of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, as Social Security is formally called.

The reason is that the people who want to kill Social Security have for years worked hard to persuade the young that the Social Security taxes they pay to support today's gray hairs will do nothing for them when their own hair turns gray.

That narrative has become the conventional wisdom because it is easily reduced to a headline or sound bite. The facts, which require more nuance and detail, show that, with a few fixes, Social Security can be safe for as long as we want.

A suggestion for Calvin Woodward of the AP

May 6, 2012

Posted by AzBlueMeanie: Calvin Woodward of the AP has a report running nationally in newspapers today that appears in the Arizona Daily Star under the caption Obama vs. Romney: Where they stand on the issues. Mr. Woodward, as your report suggests, the caption rightly should be "Obama vs. Romney vs. Romney vs. Romney, etc." The … Read more

Action Alert: Tell Governor Brewer to veto SB 1332

May 6, 2012

Posted by AzBlueMeanie: I posted the other day about how "the "Birthers-Birchers-Secessionists" Tea-Publican insurrectionists put secession from the United States on the November ballot. The House passed HCR 2004 on a 38-20 vote, sending the resolution to the Secretary of State. The resolution refers to the ballot a constitutional amendment declaring state sovereignty over lands, air, … Read more

ADP Video: Jesse Kelly Hiding His Love Away for Privatizing Social Security and Medicare

May 6, 2012

Posted by AzBlueMeanie:

Press release from the Arizona Democratic Party (I told you that we had video):

Jesse Kelly Tries to Hide His Love for Privatizing Social Security and Medicare

Kelly cares more about millionaires than senior citizens

NEWS RELEASE
May 5, 2012

PHOENIX, AZ–Tea Party congressional candidate Jesse Kelly is having his own etch-a-sketch moment when it comes to Social Security and Medicare. In the past, Kelly has not been shy about saying that he would "love to eliminate" Social Security. He said that seniors on Medicare need to "get off the public dole." He told the Tucson Weekly, "it's the biggest Ponzi scheme in history." He described privatization as "the only solution."

But now Kelly realizes that his positions are not popular with seniors, and so he has changed his tune. Kelly says he wants to protect Social Security and Medicare in an obvious and clumsy attempt to convince millions of Arizona seniors that he really cares about them.

Arizona Democratic Party Executive Director, Luis Heredia says that ploy won't work. "Jesse Kelly has told us over and over and that Social Security and Medicare need to be phased out. Ron Barber will go to Washington and fight to protect Arizona's Seniors. But Jesse Kelly cannot be trusted–he will say anything to get elected."

He also told a Sierra Vista Town Hall that Paul Ryan's plan to privatize Social Security is "the only solution for this country."

To see exactly how he's hiding his positions,watch this video (below the fold).

Update on Montana’s challenge to Citizens United v. FEC

May 5, 2012

Posted by AzBlueMeanie:

Back in February I told you about the Montana Supreme Court decision rejecting the U.S. Supreme Court decision in Citizens United v. FEC. The Montana Supreme Court distinguished Montana state law from federal law and explained the historical significance of its law under the "Copper Kings" period of its state history in which copper companies controlled the politics of the state until Montana citizens rose up and said "enough!"

This case has been kicking around with pleadings filed in the U.S. Supreme Court asking for review with a new round of pleadings filed on May 1. Lyle Denniston writes at SCOTUSblog.com, Summary ruling on campaign money urged (UPDATED):

Citizens United, the conservative advocacy group that won the 2010 ruling freeing corporations and labor unions to spend freely to influence elections for President and Congress, has urged the Supreme Court to protect that decision by overturning — without briefing or hearing — a Montana Supreme Court decision that went the opposite way. Accusing the state court of “constitutional mischief,” Citizens United’s lawyers said the Court should “reaffirm its position as the final arbiter of the Constitution’s meaning” by acting summarily.  Its new brief, filed Friday, is here.

The sequel case is American Tradition Partnership, et al., v. Bullock (docket 11-1179). There is time for the Court to act on the new case, one way or another, before the current Term ends, probably in late June, although the state of Montana is not scheduled to file its reply until May 18. If the state does file then, the Justices could consider the case at one of their Conferences later in May or in June. It would take four votes to grant review, and five to rule summarily.

Besides the amicus brief filed by Citizens United, another such brief — urging the Court to accept the case for regular review at its next Term — was filed last week by Free Speech for People and other advocacy organizations, arguing that the facts on which the Court based its 2010 ruling in Citizens United v. Federal Election Commission are now “in serious doubt” in the wake of “massive” spending in federal campaigns “by corporations and wealthy elites.” That brief is here.

[UPDATED 5:55 p.m. Additional amicus briefs have been filed, by the GOP leader in the Senate, Sen. Mitch McConnell of Kentucky, and by the U.S. Chamber of Commerce, both joining in the call for summary reversal of the state court decision. A brief filed by former officials of the American Civil Liberties Union supports review in the regular way. The blog will post those briefs on the case page as they become available.]

The Montana state court ruling at issue is on hold, after being postponed by the Court on February 17 pending the filing of the petition by challengers to a Montana law that curbs corporate spending in state elections.

Does Arizona have a bankruptcy amnesty agreement with Canada?

May 5, 2012

by David Safier Two key officers in the Rosemont Copper Company were officers of a company that went bankrupt in 1995. An article in the Star called it a "high profile" bankruptcy. Arizona law requires that a company include information about a bankruptcy involving people controlling over 20% of the shares, like these two officers. … Read more

Mittens promises Americans unicorns!

May 5, 2012

Posted by AzBlueMeanie: Oh man, did you catch these comments from Willard "Mittens" Romney? In flailing against President Obama and the disappointing jobs numbers released on Friday, Mittens said: "[I]n fact, anything over 8 percent, anything near 8 percent — anything over 4 percent is not a cause for celebration." and "We should be seeing … Read more