Monthly Archives for May 2020

Can Trump Politically Survive Cutting Social Security’s Payroll Tax?

Published in the Pawtucket Times on May 11, 2020

As Congress begins to hammer out the fifth coronavirus stimulus package to continue its efforts to jump start the nation’s economy, President Donald Trump warns he will not sign any bill that does not include a payroll tax cut.

“We’re not doing anything without a payroll tax cut,” Trump bluntly warns at a two-hour “virtual town hall” event hosted by Fox News, at the Lincoln Memorial in Washington, D.C. According to Nielson Media Research, nearly 4 million viewers tuned into this the town hall, entitled “America Together: Returning to Work,” aired on May 3, that focused on COVID-19 and the reopening of the nation’s economy.

Aging advocates and Democratic lawmakers charge that trump is using the virus pandemic as an excuse to slash payroll contributions, Social Security’s dedicated funding. Cutting the Social Security payroll taxes would reduce the amount of money withheld from employee paychecks, increasing their take-home pay.

Payroll Tax Cuts: Reducing Social Security’s Financial Stability

The Washington, DC-based National Committee to Preserve Social Security and Medicare (NCPSSM) quickly released a statement warning that Trump’s efforts to remove the payroll tax by a provision in the next COVID-19 stimulus package will ensure the fiscal insolvency of Social Security, threatening the program’s ability to continue paying benefits to 64 million Americans who depend on those benefits to financially survive their retirement years.

“President Trump set off alarm bells for America’s seniors and their advocates by insisting once again on eliminating Social Security payroll taxes – both employer and worker contributions. The President even threatened to hold hostage the next phase of badly-needed Coronavirus relief legislation unless he gets his reckless payroll tax cuts. Make no mistake: by pushing to cut off the program’s funding stream, President Trump is taking the first step toward dismantling Social Security, says NCPSSM’s president and CEO, Max Richtman in a statement.
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“While we agree that providing tax relief to middle class Americans is an important consideration as we respond to Coronavirus pandemic, we do not believe that cutting, eliminating or deferring the Social Security payroll tax is an appropriate way to accomplish this goal, says Richtman.

In an April 24 correspondence to Trump, NCPSSM’s top official reminded the president that Social Security is an earned benefit fully funded by the contributions of workers throughout their working lives. He pointed out that a payroll tax cut is an assault on that fundamental idea, equally true even if the funds are replaced by general revenues from the Treasury.

In his correspondence, Richtman suggests that a payroll tax cut should not be viewed as an economic stimulus because it leaves out large segments of the population. “Large numbers of federal, state and local government workers do not pay into Social Security, and therefore would not benefit from the payroll tax cut. Ironically, the senior population, those who are directly affected by taking their money from the trust fund, will not see a single dime of relief since most of them are not working,” he note.

Richtman also identified alternatives to the payroll tax cut that he believes would be more targeted and effective to fire up an economy slowed by the spread of the coronavirus. “Another one-time payment by the federal government can put money in the hands of taxpayers quickly, and the Making Work Pay Tax Credit can be passed by Congress rapidly as can an expansion of the Earned Income Tax Credit. Spending in other programs that directly help those who lose employment as a result of the virus can be the most targeted relief of all,” he suggests.

“In light of the recent Social Security Trustees report, it is clear that Social Security needs more revenue – not less,” observes Richtman, who served as a former staff director of the Senate Special Aging Committee.
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“The President’s campaign to eliminate payroll taxes is a violation of his patently false promises to seniors ‘not to touch’ Social Security. This proposal goes way beyond ‘touching.’ Choking off Social Security’s funding stream is an existential threat to seniors’ earned benefits,” charges Richtman.

Nancy Altman, president of Social Security Works, came out swinging when she heard Trump stating that he will block all coronavirus response measures unless they include cuts to the payroll tax, whose revenue is dedicated to Social Security.

In a statement, Altman stated: “More than 30 million Americans are newly unemployed due to the coronavirus pandemic. Their paychecks are gone, but their rent, utility, grocery bills and other expenses still must be paid. Seniors in nursing homes are dying at alarming rates. Hospitals are desperate, as are state and local governments.”

Dead on Arrival on Capitol Hill????

“Trump made it clear weeks ago that his obsession with cutting payroll contributions has nothing to do with the coronavirus or the resulting economic fallout,” says Altman, noting that he said he’d like a “permanent” reduction in payroll contributions, and that he’d support it “regardless” of the current situation. He has also said he wants to cut Social Security once he is re-elected, she added.

While Democratic lawmakers push for strengthening and expanding the Social Security Program, GOP lawmakers are signaling their opposition and aversion to risking political capital on supporting Trump’s efforts to cut the payroll tax. Trump’s calls for this tax policy change are falling on deaf ears. According to Politico, when asked if he supports Trump’s ultimatum that a payroll tax must be placed in the next stimulus package, Sen. Chuck Grassley (R-Iowa), the Senate Finance Committee chair, responded, “Right now, not much.”

“I’m going to give it due consideration, if I can see a strong group of people who think it’s the right thing to do,” added Grassley, whose Senate committee oversees federal tax policy, in the May 5 Politico article. “The president proposes, we dispose,” he quips.

Although Senate Majority Leader Mitch McConnel (R-Kentucky) is not ruling out payroll tax cuts, he is focusing his efforts to put liability protections provisions in the next major stimulus package to protect businesses against virus-related lawsuits from workers, stockholders, and consumers.

Stepping on the “Third Rail”

Political insiders consider Social Security to be the “third rail of a nations politics.” Wikipedia states that this metaphor comes from the high-voltage third rail in some electric railway systems. Stepping on it usually results in electrocution and the use of the term in the political arena refers to “political death.”

At an Iowa campaign rally in 2016, Republican presidential candidate Trump boasted that his loyal voter base would still standby him even if he shot someone in the middle of 5th Avenue in New York City. Many political pundits responded to his comment by rolling their eyes and chuckling.
Can Trump politically survive, keeping his loyal voter base, if he steps on the “third rail” by continuing his efforts to cut Social Security’s payroll taxes, pushing the program toward fiscal insolvency. When the dust settles after the upcoming November 2020 elections, we’ll see if the older voters consider Social Security an untouchable program.

Tele-Town Hall Gets the Word Out About COVID-19

Published in Woonsocket Call on May 3, 2020

This week alone, AARP in some 30 states conducted tele-town halls and 123 state calls have taken place since the pandemic surfaced. AARP Rhode Island, representing 132,000 members age 50 and over, was among the very first states to address the pandemic in a tele-town hall over two weeks ago.

At the AARP Tele-Town Hall, held Wednesday, April 22, during the 56-minute live event, state officials came to answer questions about how to cope with the devastating COVID-19 pandemic and how seniors can protect their health and stay safe. AARP Rhode Island’s John Martin, Communication Director, served as host and the panel of experts featured Office of Healthy Aging (OHA) Director Rosamaria Amoros Jones and Rhode Island Department of Health Medical Director Jim McDonald.

“We had 3,050 participants and, at one time, 974 people were on at the same time,” says Martin, who hosted the call. “We took 18 live calls in 55 minutes and, unfortunately had close to 20 people waiting to speak when time expired,” he adds, noting that it was AARP Rhode Island’s largest tele-town hall audience ever.

According to Martin, “Our in-call interactive poll revealed that nearly three quarters of those who cast votes were most interested in local resources and information on how to prevent the spread of the coronavirus, About a quarter said they were looking for help caring for family and loved ones, and information on insurance.”

Adds AARP State Director Kathleen Connell, “We were extraordinary pleased with the response to the tele-town hall,” who said she expects more statewide calls. “Just as important, however, is our virtual engagement with members and especially our volunteers. We are getting used to communicating online because that is where all of our ‘personal’ contact will be taking place, at least in the next few months — and that will include video conferencing, which we are testing now. We are impressed at how eager people 50 and older are ready to master the technology and join in.”

State Officials Talk COVID-19

“We are at a point where we are starting to see the benefits of our collective efforts of [maintaining] physical distancing, states OHA Director Jones. It is flattening the curb where the peak number of people requiring care at a time is reduced and the health care system is not overwhelmed, she says.

“It is really important for us that social or physical distancing as we also refer to it does not equal social isolation,” says Jones, noting that innovative approaches can keep people engaged with each other during this time of physical distancing.

Jones also gave a plug for Project Hello (http://oha.ri.gov/get-involved/volunteering/), a program that matches older adults with someone in the community for regular chats and for mutual support. “We’re in it for the long haul and it is going to take all of us working together neighbors helping neighbors,” she says.

“Effective quarantine and isolation efforts are critical today,” says Jones. “Our focus is on making it as easy and as comfortable as possible right now to stay home as we ready ourselves for the new normal that is on the other side of the pandemic,” she adds.

Jones called for those in quarantine and self-isolation reach out to Shopping Angels (www.facebook.com/shoppingangelsinc/) for assistance in personal shopping.

One caller expressed strong concern about Governor Gina Raimondo’s comment that people over age 60, at greater risk of severe COVID-19 illness, would be required to stay home for a longer period of time before being allowed to return to work or participate in community activities. “There have been no definitive decisions to implement restrictions at this time,” said Jones trying to reassure the caller.

Although there are programs and services detailed on the internet that can assist older Rhode Islanders to cope with the COVID-19 pandemic, one caller asked how these could be accessed without a laptop, computer or smart phone. Jones noted that The Point (http://oha.ri.gov/get-help/), operated by United Way Rhode Island and linked through 211 or by dialing (401) 462-4444, could provide information, referrals to needed programs and services.

How would people age 60 and over be protected against age discrimination when the governor is stating that it might take a longer time for these individuals to return to work? asked a caller. “It’s something we are thinking a lot about and a lot more [will] come as we talk about what the new normal is going to look like as we come through the peak of the pandemic, says Jones, stressing that age discrimination would not be tolerated.

Jones called for listeners to visit NextDoor.com, a website that promotes volunteer opportunities (including the delivery of groceries for seniors and those in quarantine), to see how they could help those impacted by COVID-19. For those seeking information about housing, Jones recommended a site, RI Havens, that provides a listing of hotels with affordable room rates for front line workers and for those persons stranded because of the virus and might need a safe place to stay. Details about food delivery options and food assistance programs can be found at the site, RI Delivers, that connects those in quarantine or isolation due to COVID-19 with opportunities to have food delivered by local and big-box grocery stores.

One caller asked Dr. James McDonald, Medical Director at RI Department of Health (DOH), about how a person could improve their immunity to assist them to successfully combat COVID-19. “You can’t always control the virus but you can control yourself,” says McDonald, stressing the importance of eating a healthy diet, regularly exercising and losing weight are actions to take to improving your health.

Making COVID-19 Transparent in Rhode Island’s Nursing Homes

During the Tele-Town Hall, McDonald was asked a question, “Why can’t the Health Department provide a list of long-term care and assisted living facilities that will show the number of patients/residents who have tested positive for COVID-19 and the number of facilities.” Twenty-four hours later this list appeared on the DOH Coronavirus Data Hub. (https://ri-department-of-health-covid-19-data-rihealth.hub.arcgis.com/).

McDonald noted that this particular virus has been so effective in causing the pandemic because it takes so long for a person to show symptoms and that other people who have it sometimes spread the virus before they even have symptoms and they don’t even know they should isolate because they don’t feel ill. It becomes important for a person to wear a mask when going outside to stop the spread of the virus, he says.

MacDonald says that it is highly unlikely to catch COVID-19 by touching grocery bags placed on your porch or through picking up a letter or package. He suggests constantly using hand sanitizer and washing your hands before and after picking up items touched by others.

AARP has created a special web page, http://www.aarp.org/RICOVID for coronavirus information and resources,” says AARP Rhode Island’s Martin added. “There you will find information about our ‘Community Connections’ program, aimed at combating isolation and loneliness, and a direct link to http://www.aarp.org/coronovirus, where all of AARP’s resources can be found.