Psst, taxes go up in 2013 for 163 million workers

WASHINGTON (AP) - President Barack Obama isn't talking about it and neither is Mitt Romney. But come January, 163 million workers can expect to feel the pinch of a big tax increase regardless of who wins the election.

A temporary reduction in Social Security payroll taxes is due to expire at the end of the year and hardly anyone in Washington is pushing to extend it. Neither Obama nor Romney has proposed an extension, and it probably wouldn't get through Congress anyway, with lawmakers in both parties down on the idea.

Even Republicans who have sworn off tax increases have little appetite to prevent one that will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500.

Why are so many politicians sour on continuing the payroll tax break?

(AP) Chart shows increase in Social Security tax in 2013 for various income levels Full Image

Republicans question whether reducing the tax two years ago has done much to stimulate the sluggish economy. Politicians from both parties say they are concerned that it threatens the independent revenue stream that funds Social Security.

They are backed by powerful advocates for seniors, including AARP, who adamantly oppose any extension.

"The payroll tax holiday was intended to be temporary and there is strong bipartisan support to let that tax provision expire," said Sen. Orrin of Utah, the top Republican on the Senate Finance Committee. "The continued extension of a temporary payroll tax holiday has serious long-term implications for Social Security and, frankly, it's not even clear that it has helped to boost our ailing economy."

The question of renewing the payroll tax cut has been overshadowed by the expiration of a much bigger package of tax cuts first enacted under President George W. Bush. The Bush-era tax cuts also expire at the end of the year, and Congress is expected to try to address them after the election, in a lame-duck session.

The payroll tax cut could become part of the mix in negotiations that could go in many directions. But lawmakers in both political parties say they doubt it.

Via: MyWay

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AARP Bashes Obama For Using it to Promote Himself in Debate

Denver, CO— Earlier this evening the Presidential candidates discussed AARP, Social Security and Medicare during the first Presidential debate of the 2012 general election.  AARP, a sponsor of activities at all four of the 2012 Presidential and Vice Presidential debates, released the following statement in response.  AARP Senior Vice President John Hishta said:

“We’re grateful that this evening the candidates engaged in a more robust conversation with regard to Medicare.  We’re also pleased Social Security was included in tonight’s debate. But America’s voters deserve more than talking points and 30-second sound bites. Our members and older Americans want to hear how the candidates would strengthen Social Security, Medicare, and financial security, and we encourage the candidates to offer more specifics about their plans before Election Day.

“Across party lines, older voters say that getting more information on the candidates’ plans on these crucial economic security programs will help them determine their vote. We know that our members vote, and they want the candidates to tell them how they’ll fix Medicare and Social Security for them, their kids and their grandkids.

“Earlier this year, we launched You’ve Earned a Say, a national conversation on the future of Social Security and Medicare, to engage people in communities across the country so they have the pros and cons of proposals currently on the table in Washington and on the campaign trail. 

“While we respect the rights of each campaign to make its case to voters, AARP has never consented to the use of its name by any candidate or political campaign. AARP is a nonpartisan organization and we do not endorse political candidates nor coordinate with any candidate or political party.  

“We remain focused on providing voters with balanced information on where candidates stand on the key issues, so they can make their own decisions on Election Day.  For more information on where the candidates stand on premium support and other Medicare topics discussed tonight, see AARP’s Voters’ Guides at www.earnedasay.org.”

Via: AARP Blog

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Obamacare: AARP's get-rich-quick scheme

A politician spoke to a top D.C. special interest group on Monday. He told them that his legislation helped make them richer at taxpayers' expense and received their applause for doing so. Sound outrageous? Well, consider this: The speaker was President Obama, and the special interest was AARP.

The president spoke to the senior group's annual conference via satellite to tout his health care law, arguing that it had strengthened health care for seniors. He also warned that a Mitt Romney presidency would do the bidding of the insurance giants.

"No American should ever spend their golden years at the mercy of insurance companies," Obama said.

What he didn't say was that the leadership of AARP had worked extensively behind the scenes with the White House to pass the law, acting against the wishes of its own members and spinning furiously to keep its own board of directors "in line."

Advocacy is only part of what AARP does. It is also heavily involved in the insurance business. Insurers pay AARP to use its name, and that accounts for 60 percent of the organization's revenue. Membership dues account for just 17 percent.

Thanks to its cuts to Medicare Advantage, Obamacare is expected to expand the number of seniors buying "medigap" supplemental insurance plans. AARP controls 34 percent of the market for such plans. According to a 2011 House Ways and Means Committee report, AARP stands to make between $55 million and $166 million from Obamacare in 2014 alone.

As emails recently unearthed by the House Energy and Commerce Committee show, the supposedly neutral, nonpartisan group coordinated with the White House on media strategy and lobbying reluctant lawmakers.

Via: Washington Examiner

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