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  • AARP: How High Do You Want Your Grandkids' Taxes to Go?

    AARP’s latest video opposing spending reductions in Social Security or Medicare once again pushes the flawed argument that cutting federal budget waste and loopholes would effectively address America’s unsustainable fiscal problems. A senior featured in the video asks, “With billions in waste and loopholes, how could they look at us?”

    Yes, there is substantial government waste that Congress can eliminate, but that shouldn’t be a substitute for real entitlement reform. Spending on Medicare, Medicaid, and Social Security—the three main entitlement programs—represents more than half of the entire federal budget today and will consume all of tax revenues by 2049.

    It is this spending that drives the debt and deficits, not government waste or tax loopholes.

    With entitlement spending projected to more than double by mid-century, burdening future generations with unmanageable debt levels, Congress must tackle the difficult issue of entitlement reform now.

    AARP argues that today’s seniors have paid into the system all of their lives and should get what they paid for. But both Social Security and Medicare are set up so that current workers pay for the benefits of current retirees rather than paying for their own future benefits. So seniors don’t actually receive what they paid into the system at all. In some cases, they receive more—the value of the benefits current seniors are receiving in Medicare is well in excess of what they paid in.

    The benefits seniors receive today won’t be around later if Social Security and Medicare remain as-is. Unless Social Security is fixed, everyone who is receiving benefits will face an automatic 25 percent benefit reduction by about 2036. Even now, some seniors are forced into poverty due to an inadequate Social Security benefit.

    For these reasons, groups like AARP should support improving—not just preserving—entitlement programs through structural reforms. Heritage’s Saving the American Dream plan, for instance, would improve benefits by guaranteeing that no senior under these programs would have to live in poverty or without access to health care. The Heritage plan accomplishes this for Social Security by increasing the retirement age to reflect changes in life expectancy that have already occurred; providing a predictable, new flat benefit; and ensuring that benefits go to Americans who actually need them. It reforms Medicare by transitioning to a system in which seniors receive a defined contribution, receive catastrophic care coverage, and can choose the health plan that most appeals to them.

    Finally, the video spotlights the current 50 million seniors receiving benefits, which only stresses the severity of the problem: Taxpayers are stretched to their limits to fund inefficient and costly entitlement programs for a rapidly increasing number of beneficiaries. Compared to 50 years ago, when five workers paid the benefits for each retiree, today only three workers exist per retiree; in 20 years, it will amount to only two. In a word: unsustainable.

    There are two ways to solve this problem. One way—the Obama way—is to lock in these unsustainable benefits and tax our way out. That would mean tax hikes on every American: from 10 to 25 percent for the lowest bracket, 25 to 63 percent for the middle, and 35 to 88 percent for the highest, by 2082.

    Would AARP’s members really want to pass on such a legacy to their grandkids?

    The better solution is to transform these programs in a way that could give AARP’s members confidence that they will have economic security in retirement, that Social Security and Medicare will be around for decades, and that their grandkids will have the same kind of promise and opportunity they had. Surely that is the kind of legacy AARP’s members want.

    Saving the American Dream must be the job of this Congress and this President.

    Posted in Economics [slideshow_deploy]

    22 Responses to AARP: How High Do You Want Your Grandkids' Taxes to Go?

    1. West Texan says:

      I know my argument always gets lost in the mix. But I'll say it again that the feds need to begin turning entitlement reform efforts over to the individual states where these concerns rightfully belong. Such fiscal security and healthcare services should have never been instituted at the federal level.

    2. Jerry Norris says:

      Entitlements?
      An Entitlement is something that is supplied to the citizenry . I have been paying into Social Security since my first job when I was 15 yrs old and am 67 yrs old and still working ( and still paying into the system) At 15 I was told that a percentage of my income would be set aside so that when I retired I would have a return on my ‘investment’ to assist in my aging years. OK so the government wasted my contributions on everything imaginable instead of investing it for me as promised. What do I do to get my money back… with some interest thrown in?

    3. Paul Allen says:

      We should implement the MedicUS program incrementally starting with Paul Ryan's Medicare
      approach with Means Testing and emphasis on Managed Care. Estimated annual
      savings is 10% for the first full year of each program implemented. These programs collectively now are 65% of the national health care budget. Obama Care would then never come to fruition. States would be ecstatic as would be DOD and the VA. Paul Allen

    4. ClydeB says:

      Since the SS trust fund was required by law to loan the premiums to the treasury by way of purchasing bonds, seniors are certainly entitled to their claim that their money should be available. The treasury has already defaulted on the SS bond debt since it does not have the approx. $2.6 trillion to redeem the bonds.

    5. George Colgrove, VA says:

      Both AARP and Heritage are right. I can only imagine when the GOP congress got started with business in January, that had they started with eliminating the extravigant federal pay and benefits, the waste, fraud, duplication and redundancy of programs, that we would be $100's of billions out fo the hole today. AARP is tight here. I feel before we add one more penny tot he debt or take away SS benefits to only the elderly, we should have every loophole closed, every wasteful program eliminated; every duplicative program consolidated and so on. We should have just about the leanest and meanest federal workforce before we start cuttin programs.

    6. pierre chagnon says:

      the young generation is defenseless against the liberal establishments who are a gathering of old aged leftist,that will be long gone when the apple pie hit the fan.

    7. J. Sloan says:

      II am a senior living on social security. If it is taken away, how do I pay my rent and car insurance, how do I buy my groceries, and how do I contribute to my church? What will happen to the United States if 50 million people is without groceries? Will my landlord put me out on the street to beg for my daily meal? I would like to hear serious reponses to my questions.

      • Guest says:

        First, all legitimate plans to overhaul SS would leave the payments to people that are already retired untouched. Republicans, contrary to popular belief, don't want to kick all the old people out on the street. That being second, a winding down of social security benefits would likely take place incrementally. With a working career between the 15 and 65 years of age, the amount you would recieve in SS payments would be proportional to how long you have been working up to this point. If you are 65 or older, you would recieve all you benefits. 55-64, you would recieve 80% of your originally agreed upon amount, since you have worked 80% of your career. 45-55, 60% and so on. The idea is that these people, upon the realization that SS will be smaller when they retire, would have longer to save for their retirement. Don't get caught up in theese ridiculous scare tactics, and vote to do what is right by all americans!

      • Guest says:

        why didn't you plan for your retirement? SS was NEVER intended to totally pay for you to retire it is a supplemental, basically so you wouldn't starve. HOWEVER, how much did you contribute to SS and how much have you withdrawn? If you have been on SS more than 6 years you are now a welfare recipient who is on the public dole–it takes, average, of 12 working people to pay for 1 person receiving max monthly benefits. Hope you have lots of grandkids because they are paying for your social security NOW.

    8. allen says:

      The Lawyers are in the Hen House, you know what that will mean new ways for them to steal just a little more money. American Greed when Attorneys see MONEY, They all want to be Bearnie Madoff, methinks. Ha……..

    9. Guest says:

      This is the same AARP that supports this tax and spend administration. People better wake up to the fact that the government is spending us into the poorhouse and there is not a bottomless pit of money. ARRP pushed for Obamacare, now they don't like the bill. If the House has it's way, it won't affect today's seniors. We've extended the average person's lifeexpectancy from what it was years ago by about 30 years. Used to be SS and Medicare covered 5 to 10 years now it can end up covering 30 to 40 years. No matter how much workers pay in, our government just spends it and leaves an IOU.
      Wish we could operate like that !!

    10. Tim Az says:

      My best guess is that the regime would like to tax your grandkids until they give up and surrender them selves completely unto the government. The regime is counting on the AARP leadership to get their seniors in line and make it happen. Had enough yet?

      • Guest says:

        AARP for all of the old people, and community organizations, like Acorn, for the poor. They have quite the grassroots propaganda organization. Hopefully it can be overcome

    11. Tim Az says:

      My best guess is that the regime would like to tax your grandkids until they give up and surrender them selves completely unto the government. The regime is counting on the AARP leadership to get their seniors in line and make it happen. Had enough yet?

    12. Don Harper says:

      AARP has all the concern for senior citizens that union bosses have for union members – none. There interest is limited to how much dues they can rake in. Period.

    13. jesse atwell says:

      A democrat, LBJ, removed the SS Lockbox and transferred all monies to the general fund in 1966. An IOU was left by the US gov't providing full faith and credit that the IOU's would be repaid with interest. Now that the bills are coming due for SS …we are being told that seniors are getting more than they paid in….The amount paid in was 2.6 Trillion …that money should have been worth almost 25 Trillion dollars at this point if it would have been invested and not frittered away. The Gov't has stolen every dollar of that money though and in the process, lined the pockets of theiving politicians, bankers and Wall Street Brokers to the point that it has destroyed the American economy. The only answer is to remove the Federal Reserve cookie jar to get the economy moving again. Congressional gov't spending/investing has not "created" anything except more debt, interest and inflation. Not one program has been succesful. Gov't is the root problem here…yet seniors who did everything gov't/politicians required them to do, are now being cast as greedy, useless villians by their own representatives and President.

    14. NanC says:

      We pay into Social Security for our working days and deserve the return promised. Just tax one's whole salary for the 6% FICA (Social Security) as we do for Medicare.
      Do not be captured by those who are pretending to be worried about the middle class and grandkids while really only concerned about maintaining their upper class income. Do we know what the newscasters and others who plead for modifications to our earned social security and medicare savings, not entitlements?
      I imagine it is well over the $250,000 mark.

      • Guest says:

        How about me, a 20 year old student who will have to pay growing FICA taxes without any hope of receiving Social Secuirty. I atleast realize that i can't rely on the government to take care of me in my old age, where as you trusted them blindly. And stop getting caught in the propaganda of this issue, and plan would incrementally phase out or decrease social securitry payments. Those seniors that need the money, and have no working years left, would not lose their benefits. Those of us who have a long working life ahead of us, however, won't. And I pray to God that i don't collect social secuirty, and I hope that some time in the future the FICA tax will be decreased. And by newscasters do you mean all of the liberal propagandists on CNN, NBC, MSNBC?? please clarify

    15. Pingback: AARP: ¿Cuánto quieren Uds. que suban los impuestos de sus nietos? | Heritage Libertad

    16. Pingback: AARP: How High Do You Want Your Grandkids’ Taxes to Go? | Republican Party of Milwaukee County

    17. Paul Felix Schott says:

      Lord i Pray that we stay One Nation Under GOD, and United that all should be Free. May we always have Patriots like Paul Revere. To tell us the wicked are coming to dig in our pocketbook.

      Our Government needs to Lower all taxes while we still have a United States of America.

      When this Old World starts getting you down. From Pollution the cost of OIL, Heating Fuel,The Fuel you put in your Vehicles, You Electric Bills from
      cooling air conditioners and lights not to speak of the Evil. The TAX that all Governments Federal, State, County and City put on everything they can thing of.

      They are supposed to serve us. Not put a burden on its people. That they are elected to serve all the people you, not their own Pocket Books.

      The Wicked keep putting higher taxes on everything. Making it a Heavy Burden on many that are already struggling just to put food on the table.

      Too many Americans have lost their home to the tax collector or to foreclosures from the unjust bankers greed. More are out of work and lost their homes then in the GREAT DEPRESSION, in the last ten years. All Americans and many Nations need good jobs and more of them. Not more TAXES.

      All Taxes need to be lowered now while there is still time to save America.

      There is a Industry that will employ workers and is growing by more then 50% every year. There is a clear way for all up on the roof the Sun Light is free fuel from GOD. Some wicked in Government have been backing Coal, Oil, Gas and the Nuclear industries for too many years.

      These kickbacks to them were called Subsidizing Industry Technology. Most all Wise Men and smart Economist and Environmentalists call this padding their pockets and subsidizing back to the
      Stone Age.

      The best deal would be to lower Taxes for all this is not the Roman Empire.

      The Chinese Know Renewable Energy is a good thing. Most of the rest of the World is still a slave to Oil, Coal and Nuclear Power. All the Governments of the World now know it is wise to use Renewable Energy it is the Local Governments that are a little slow to learn what is best for all not just there pocket book.

      They fear people going off the grid all that tax money they will no longer be able to take from you. Wind and Solar Farms are growing all over the Earth. This could have happened years ago if the greedy wicked were stopped by the Real Good.

      The Freedom to get your own Power from the Wind and Sun, Solar Energy has been there for years. Are Libraries and Schools should have been the first to have gone Solar and Renewable Energy. And why are they not? Churches are all over the Planet. They are going to Solar Energy.

      Thank GOD for the Pioneers like John Schaeffer that Started Real Goods The first and Best catalog for Renewable Energy and Scientist Bill Young at the FSEC Florida Solar Energy Center and Monica D. Key Lindbergh for many years wrote to our legislators promoting Solar and Renewable Energy and many others.

      These Pioneers helped put Wind, Solar And Renewable Energy in the Spotlight for all the World to see.
      The Great Scientist Albert Einstein Stared it with a Dream that the day would come that all the World would use Solar Energy. His many years of work with the law of the Photoelectric Effect, and showing this to the World won him the Nobel Prize in Physics. We still do not teach this to our young.

      GOD Bless all that help tell this to the World

      All Taxes need to be lowered cut in half or there will be a lot more Poor and needy and not in just other countries. This coming year the World will see hunger like never before. More then 100 million will be sick from malnutrition going with out food. Taxing the poor and taking there Land away from them is Wicked. Very soon the Rich will become the Poor.

      If your Legislature will not lower Taxes vote them out of office and VOTE in someone that will Lower your Taxes. If your Son or Daughter was raised in a christian Home we need them in our Government as Leaders.

      United We Will Always Stand
      In GOD We Trust
      True Patriots
      GOD Bless
      and May HE Guide you all.

      The Lord’s Little Helper
      Paul Felix Schott

      P.S.
      Many a Nation have fallen from taxing their people to Death. You want Prosperity and for thing to Flourish and grow lower all taxes. You want thriving, success, or good fortune for only a few, keep over taxing all.
      Solar, Wind and Renewable Energy Freedom from OIL. The Humanitarian thing to do. Solar Energy.
      Why let the Wicked in office in our Nation if they do not believe in GOD and the Bible vote them out of office.
      United We Will Always Stand in GOD We Trust George Washington and Johann Paul Schott 1776.
      In GOD We Trust
      The United States of America’s Motto July 30, 1956.
      King David's Motto 3,000 years ago.

    18. J.A. Mauney says:

      The AARP campaign to threaten political opposition to anyone "who touches my medicare or social security benefits" has been somewhat successful. I, for one, have changed my mind about the integrity of the organization. I now, will never be a member of an organization like AARP for it has misused it's power to control it's membership through the use of fear tactics.
      I ask publicly for AARP to name all the legislators in either party who have proffered legislation that would affect ANY CURRENT beneficiary's benefits.
      Most agree that Social Security and Medicare, as currently structured, will have to be adjusted to reflect increased life expectancy and dramatically reduced numbers of individuals in the work force available to support those of retirement age, of which I'm one.
      This shameful "tactic", which is designed for one singular purpose, creates yet another divisive issue that will make solutions to the many problems facing this country even more difficult to solve.
      Shame on AARP.

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