Democrats Will Have to Compromise if They Lose Georgia Senate Run-Off

With Democratic presidential candidate Joe Biden taking the White House, the Washington, DC-based National Committee to Preserve Social Security and Medicare (NCPSSM) called on Congressional lawmakers to address the needs of older Americans during lame-duck session ending Jan. 3 and throughout President Biden’s first 100 days in office.  Can Congressional lawmakers put aside political differences to pass a last-ditch Stimulus package compromise, a defense bill, and consider aging legislation piling up in just 27 days when the lame-duck session ends?  Will there be political grid lock after President Biden takes office on Jan. 20 if the GOP maintains control of the Senate block Congress from taking up legislation impacting older Americans?

Legislation Piling Up in Lame-Duck Session

“Though this is normally a time when expectations for Congressional action are low, the National Committee expects our elected representatives to act on behalf of seniors and other struggling Americans hit hard by the pandemic,” says NCPSSM president and CEO Max Richtman, in correspondence sent to Congress on Dec. 3.

Across the nation seniors are the hardest hit age group by the ongoing coronavirus pandemic.  “Eight out of 10 deaths from COVID in the U.S. have been in adults 65 years old and older. Whether as part of an omnibus funding bill, continuing resolution or COVID relief package, The National Committee is urging lawmakers to pass urgently needed measures for seniors,” says Richtman.

Richtman calls on Congress to address the Social Security “Notch” issue. He warns that if Congress doesn’t take action, workers born in 1960 and 1961, will see lower Social Security retirement benefits in the future. According to the Chief Actuary of Social Security, this will sharply reduce benefits for those born in 1960 compared to the benefits received by people born just one year earlier, creating an effect known as a “notch,” notes NCPSSM’s correspondence.

Congress can correct this notch in Social Security benefits by passing Rep. John Larson’s (D-CT) H.R. 7499, the “Social Security COVID Correction and Equity Act,” says Richtman.  The legislative proposal would increase benefits for those born in 1960 and 1961 without impact the benefits for any other beneficiary. 

In October, the Social Security Administration announced that approximately 70 million Americans would see a meager 1.3 percent increase Social Security benefits and Supplemental Security Income. “More than half of seniors receive over one-half of their income from Social Security, and it provides at least 90 percent of income for more than one-in-five seniors.  These seniors are dependent on a reasonable COLAs to maintain even a modest standard of living in retirement,” said Richtman.

With retirees experiencing financial difficulties during the pandemic, a $20 increase in their monthly check might not help them to pay for spiraling health care and drug costs, along with the expenses of purchasing personal protective equipment and cleaning supplies to keep them safe. 

Richtman’s correspondence also pushes for passage of Rep. Peter DeFazio’s H.R. 8598, “Emergency Social Security COLA for 2021 Act,” to provide Social Security beneficiaries with a 3 percent increase (or a $250 per month flat increase) which would reduce the impact of the small 2021 COLA increase. 

Protecting the Fiscal Viability of Social Security

Last August, NCPSSM and aging advocacy groups opposed President Trump’s signed executive order that would allow employers to defer workers’ payroll tax contributions for the rest of the year.  Between Jan. 1, 2021 and April 30, 2021, these employees will be required to pay back their deferred payroll taxes, doubling their FICA taxes for the first four months of 2021.  The National Committee has supported efforts to ease the burden for those affected by this hardship. 

NCPSSM correspondence also called on Congress to extend a protection to lower-income Medicare and Medicaid beneficiaries, including ‘Money Follows the Person’ (which provides funding for states to help skilled nursing care patients to remain in their homes) and impoverishment protections for the spouses of Medicaid recipients receiving long-term care.

Finally, Richtman requested extending the funding for Medicare Low-Income and Enrollment Assistance, which provides funding for State Health Insurance Assistance Programs and Area Agencies on Aging to assist low-income seniors access programs such as the Medicare Prescription Drug Program Part D Low-Income Subsidy.

NCPSSM’s “wish list”, detailed in Richtman’s correspondence, could easily be rolled into a continuing resolution that Congress must pass by Dec. 11 to get the federal government operational. But, any of the legislative proposals pushed by The National Committee would be bottled up in the Senate, by GOP Senate Majority Leader Mitch McConnell, referred to as the “grim reaper,” he Republicans maintain control of the Senate during the 117th Congress.

GOP ‘Grim Reaper’ Keeps Democratic Bills from Consideration

Last February, on Fox News Friday, anchor Bret Baier asked McConnell to confirm Democratic charges that House passed and Senate proposed legislation would never see the light of day on the Senate Floor.  At the time of this interview, the GOP Senator, controlling his chamber’s legislative agenda, confirmed that 395 bills sitting in his chamber would not be passed.

“It is true,” admitted McConnell during the Fox News interview.  “They’ve been on full left-wing parade over there, trotting out all of their left-wing solutions that are going to be issues in the fall campaign. They’re right. We’re not going to pass those.,” he said, recognizing the politics of a divided government. 

McConnell’s ‘Legislative Graveyard’ created by his blocking debate, markup and refusing to allow a vote on Democratic proposed legislation is well documented in the press and by a report released last September by Common Cause, a watch dog advocacy group with chapters in 35 states. “In fact, the Senate’s inaction has the 116th Congress on track to be the least productive in history, with just one percent of the bills becoming law [between] January 3, 2019 to September 16, 2020],” said Aaron Scherb, Common Cause’s director of legislation and author of the 2020 Democracy Scor

During an interview published on Sept. 16, 2020 in Newsweek, Scherb said, “There have been hundreds [of bills] that have been passed by the House at this point.  There have only been 158 enacted laws by this 116th Congress to this point.  Yet there are hundreds of bills that have passed the House but continue to sit in Senate Majority Leader McConnell’s desk, or his ‘legislative graveyard’ as it’s been called.”

With McConnell winning his reelection, the senator from Kentucky can only maintain control of the Senate’s legislative agenda if he can keep two GOP Senate seats up for grabs in next month’s Senate runoff in Georgia.  A Democratic win will give the party a majority 50 Senate seats, with Vice President Kamala Harris breaking a tie.

In order to pick up the two GOP Senate seats, held by incumbent Senators David Perdue and Kelly Loeffler, Democrats must successfully mobilize voters and adequately fund the campaigns of Democrat Jon Ossoff and Raphael Warnoc. At press time, millions of campaign dollars are pouring into Georgia’s Senate runoff elections, with the two GOP Senators bringing in more campaign donations because of Republican super-PACs giving them the spending edge. The Democrats are receiving their political contributions through small donors.

Even with the Democrats controlling the White House and House of Representatives, if McConnell maintains control of the Senate, legislative gridlock in the upper chamber will most certainly continue.  This will make it more difficult for the NCPSSM and other Washington, DC-based aging advocacy groups to successfully push for passage of legislation to ensure the financial security and health of seniors

Opposition Builds Against Elimination of Social Security’s Payroll Tax

Published in the Pawtucket Times on September 28, 2020

With the looming 2020 presidential elections, the National Committee to Preserve Social Security and Medicare (NCPSSM) announces its first ever Presidential endorsement, throwing its support to the Joe Biden/Kamala Harris campaign. The Washington, DC-based aging advocacy group, founded by James Roosevelt, Jr., the son of President Franklin D. Roosevelt, who is credited with founding Social Security, fears for the retirement program’s future survival under a second Trump term. NCPSSM’s endorsement breaks the National Committee’s 38-year tradition of steering clear of Presidential campaigns in order to focus its resources on House and Senate races.

NCPSSM support of Biden follows the endorsements of other aging advocacy groups including AARP, Social Security Works, Alliance for Retired Americans, Medicare for All, American Federation of Government Employees and National Treasury Employees Union.

“During the past four years, we’ve seen this president pay lip service to seniors’ needs while actively undermining their best interests, the latest example being his reckless pledge to terminate the payroll taxes that fund Social Security and Medicare,” says NCPSSM’s president and CEO Max Richtman. “As the pandemic has worsened, we have seen an abject failure to protect nursing home residents and workers, who represent 40 percent of all COVID deaths. Never in our organization’s history have we seen such a consistent level of threats to the health and retirement security of America’s seniors,” he added, noting that the most effective way to protect the solvency of Social Security is to elect Joe Biden as president,” he said.

Adds, James Roosevelt, Jr., Vice-Chairman of the National Committee’s advisory board, “By enacting Social Security, my grandfather, President Franklin Roosevelt, gave workers the promise of dignity and financial security in retirement. Thirty years later, President Lyndon Johnson signed Medicare into law, providing older Americans with affordable, accessible health insurance. There’s a reason Social Security and Medicare have been around for 85 and 55 years, respectively. Americans value and depend on them. My father and grandfather would be outraged that President Trump and his allies want to dismantle both programs. I am 100 percent behind the National Committee’s decision to endorse Joe Biden, the candidate who can be trusted to protect seniors’ earned benefits from any attempts to undermine or privatize them.”

Trump’s Changing Policy Positions on Social Security

On Oct. 4, 2016, at vice presidential debate at Longwood University, Democratic vice-presidential nominee Tim Kaine noted that in 2000, Donald Trump wrote a chapter in a book, The America We Deserve, calling Social Security a” Ponzi scheme” [an investment fraud] and stating that “privatization [of the program] would be good for all of us. ”

One month before Trump formally announced his candidacy on June 16, 2015, with a campaign rally and speech at Trump Tower in New York City, he tweeted, “I am going to save Social Security without any cuts. I know where to get the money from. Nobody else does.”

As a presidential candidate, Trump continued calling for protecting Social Security, long regarded as one of the most successful and popular social programs ever enacted by Congress. During a June political rally in 2016, Trump claimed, “We’re going to save your Social Security without killing it like so many people want to do” and throughout the 2016 presidential campaign repeatedly promised “not to touch” seniors’ earned benefits and to “protect your Social Security and your Medicare.”

Once in the Oval Office, Trump’s views changed. Congress was forced to block his proposed budget cuts and rule changes that would hurt Social Security beneficiaries, says Richtman.

“Trump has betrayed older Americans through his bungled response to the COVID pandemic and by blatantly breaking his promises to protect senior’s cherished social insurance programs. He has proposed more than $1 trillion in cuts to Social Security, Medicare and Medicaid. He has vowed to eliminate the payroll taxes that fund seniors’ retirement and health benefits if re-elected to a second term. He has urged the Supreme Court to strike down the Affordable Care Act, which improved Medicare benefits and solvency. In short, the President has listened to advisors who want to dismantle the country’s most effective social safety net programs” says NCPSSM’s top official.

A Stark Warning

On August 8, Trump has signed an Executive Order, Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, to authorize a payroll tax holiday/deferral to give American taxpayers extra cash as they deal with the coronavirus pandemic. The president’s action allows employers to stop deducting the 6.2 percent employee payroll contribution toward Social Security for the rest of the year.

An Aug. 28 IRS memo noted that employers who participate in the payroll tax holiday will then have to pay back the taxes starting in 2021. Simply put, more money will take out paychecks from Jan. 1 to April 30 in 2021 to repay the taxes owed.

Richtman warns, don’t count on payroll tax forgiveness. “Unless Congress passes legislation to address this, the workers will ow every cent of that payroll tax deferral in 2021, and employers would have to deduct more from their paychecks starting January to repay it,” her says.

NCPSSM, Democratic lawmakers, and Social Security advocacy groups don’t see Trump’s elimination of the Social Security payroll taxes as an effective economic stimulus especially to unemployed workers. This action could effectively defund the Social Security and Medicare programs could ultimately bankrupt these programs.

In the letter released on Sept. 23 , Nancy A. LeaMond, AARP’s Executive Vice President and Chief Advocacy and Engagement Officer said “As AARP raised in letters to Congress back in March and President Trump and Treasury Secretary Mnuchin in August, we believe suspending, reducing, or eliminating contributions to Social Security will interfere with the program’s long-term funding stream… This deferral, along with the President’s recent statements on the permanent elimination of the Social Security payroll tax contribution, are engendering uncertainty among older Americans and the general public about Social Security and its ability to pay promised benefits. As such, AARP supports the resolution of Congressional disapproval.”

Trump counters NCPSSM, AARP and others condemning his Executive Order. He claims that eliminating the Social Security tax would not impact the solvency of Social Security, because the money would be shifted from the government’s general fund. Both continuing his payroll tax cut and shifting funds would require Congressional action. That, also, would require an act of Congress.

With this first time political endorsement, NCPSSM hopes to see a Democratic administration take over the White House to strengthen and expand Social Security, not weaken it by eliminating the program’s payroll taxes. “After nearly four decades of fighting to protect American seniors, the National Committee has determined that many older Americans cannot afford – let alone survive – another four years of President Trump. By endorsing Joe Biden and Kamala Harris today, we will work tirelessly to help voters of all ages understand that Trump’s promises are empty. He offers seniors a one-way ticket to nowhere. Americans deserve a President who will protect and strengthen the federal government’s commitment to older Americans.”

This article was updated on Sept. 24.