Category Archives: Inflation

Another Obama Double-Cross, Media Cover-up: No Additional Social Security Money Until 2012

Par for the course I guess, but this is becoming quite a pattern with the Obama administration and the news media.  Obama has this strange habit of promising everybody the world, but once in power, takes it all back and simply does whatever he wants. 

The latest political promise, double-cross involves his base – a group that I would not want to upset.  Obama had promised to implement a payroll tax on those making over $250K/year, the people he calls millionaires and billionaires, to help pay for the ever depleting bucket of money in social security.  His base strongly approved of this pledge to uncap the taxing threshold – here is what he said:

Social Security is strong, but as more baby boomers retire, the long-term cash-flow needs to be addressed. We have to make sure Social Security is there for future generations…

Here’s where I would start. Right now, the Social Security payroll tax is capped. That means most middle-class families pay this tax on every dime they make, while millionaires and billionaires are only paying it on a very small percentage of their income. That’s why I think the best way forward is to first look to adjust the cap on the payroll tax so that people like me pay a little bit more and people in need are protected. That way we can extend the promise of Social Security without shifting the burden on to seniors. And we should exempt anyone making under $250,000 from this increase so that the change doesn’t burden middle-class Americans. This means that 97% of Americans will see absolutely no change in their taxes under my plan – 97%…

This promise, via the Collins Report, has been taken back by Obama, and due to that fact alone, Obama is now pushing the burden onto seniors to pay for this debacle (another government-run system).

Citing a 2008 third quarter cost of living decline, Congress has voted no cost of living increase in next year’s Social Security checks for the first time since 1973.

The Democrats are pointing to their own prediction of a “… [steady] decline in consumer prices through the first three quarters of this year…” Based on this they claim to foresee no need for raises until possibly 2012.

Democrats ignore Consumer Price Index: hide behind flat Inflation

Obama’s base will suffer the most. While 80% of our big cities voted for Obama it’s apparent the elderly, both White and minority, will be asked to “balance the budget” by themselves. There might not be any inflation but the Consumer Price Index (CPI) has risen steadily since January, and people are living by the CPI not the rate of inflation.

Numbers show ignoring the CPI will crush elderly and minorities.

A little history:

Back in the 80’s, Congress changed the way that the CPI was applied to the Social Security COLA, with the express intention of limiting the COLA increase.  That same year, they voted themselves a raise.  The resulting rage among seniors was palpable.  This time around things could get interesting!

There are those who are stating this is old news, but it still begs the question, why is nobody in the media bringing up the fact that he has incessantly lied to those who elected him and the American public?  Yes, all politicians lie, but I’m not sure I have ever seen it to this extent – I know, I know, I’m young, but still…

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Filed under Congress, Double Standards, Economy, Government Spending, Hypocrisy, Inflation, Media, MSM, National Debt, Obama, Obama Administration