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Clinton: Raising Retirement Age 'Not an Answer'
September 07, 2007 7:36 PM
ABC News' Teddy Davis and Leigh Hartman Report: Senator Hillary Clinton, D-N.Y., sought to distinguish herself from Senator Barack Obama, D-Ill., on the red hot issue of Social Security on Friday while speaking to thousands of senior citizens in Iowa at a forum sponsored by the AARP.
"Putting everything on the table is not the right answer," said Clinton. "Raising the retirement age is not an answer. Cutting benefits is not an answer. We need to get back to the fiscal responsibility that we had in the 1990s, when we weren't draining the Social Security fund anymore."
Clinton's comments were intended to separate her from Obama who told "This Week with George Stephanopoulos" earlier this year that everything outside of privatization should be "on the table" when it comes to addressing the shortfall that is expected in Social Security when the baby boomers retire.
Ruling out an increase in the retirement age is intended to appeal to the older voters who dominate Iowa's first-in-the-nation caucuses.
But the former first lady's resistance to asking Americans to work longer is somewhat at odds with her strategist's belief that Americans are already working longer.
Without explicitly advocating an increase in the retirement age, Clinton's strategist, Mark Penn, argues in his new book, "Microtrends," that the looming Social Security shortfall is best addressed by people working longer.
In the chapter called, "Working Retired," which looks at the rising trend of Americans working longer, Penn writes that "everything we have been predicting for the last decade or so, regarding the collapse of Social Security, was wrong."
"There won't in fact be ten retirees for every worker," Penn writes, "because the retirees will be working too. The enormous Social Security burdens we've been haranguing about will be reduced, to some degree, by this trend -- and largely on the part of people who want to do it."
Citing research done by Eugene Steurle of the Urban Institute, Penn writes that if everyone worked one year beyond expected retirement, the United States would "completely offset the anticipated shortfall between benefits and taxes in the old age insurance portion of Social Security."
"If everyone works five more years," writes Penn, "the overall additional taxes to the government alone would be greater than the shortfall."
A Clinton campaign spokesperson did not immediately return a request for comment.
September 7, 2007 in Tancredo, Tom | Permalink | User Comments (11)
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Raising taxes isn;t the answer either. Privatizing SS. Everybody take a discount to their planned benefits with a good safety net and give everyone a lump discounted sum to privatize with limited risk asset funds.....this keeps the polititians from spending the money!!!
Posted by: richard | Sep 7, 2007 8:32:46 PM
I would like to ask Hillary why when her husband became President his first budget he lowered the combine income you coudd make when you retired on social security from $150000 to $32000 go over that amount and you could be tax 50%
of you check go over $44000 your social security check could be tax 85%.
And either party is talking about that tax.But the baby boomers are the ones that are really going to get hit hard with that tax her husband hit them with ,I would like to get a reply ,I live in a retired 55 and over coummunity and remember they are the one's that vote.Roger Ryan
Posted by: roger ryan | Sep 7, 2007 9:38:24 PM
she stops at nothing it seems. what a panderer! everything she says is an attempt to gain votes... disgusting lack of character
Posted by: stefanie | Sep 7, 2007 10:20:45 PM
I am a tax accountant with 28 years' experience. I believe that the taxation of social security benefits is one of the biggest scams the government has ever pulled on the American people. The "theory" behind this scheme is, since employers match their employees' contributions, but the match is not taxed, it stands to reason that it should be taxed upon retirement (subject to arbitray income limits). The reason this is a scam is simple: most people do not live long enough to receive even the part of the benefit (the employee's part) that was already taxed when earned.
Posted by: Steve Campitelli | Sep 8, 2007 12:26:34 AM
"Raising the retirement age is not an answer. Cutting benefits is not an answer. We need to get back to the fiscal responsibility that we had in the 1990s, when we weren't draining the Social Security fund anymore."
--Translation: "Let's jack up taxes on Social Security.'
GREEAAT! So, we cannot expect healthy people to work longer nor can we expect rich people to receive reduced benefits. Instead, we should jack up the taxes on the working generation so that the retired generation can experience the benefits of full Social Security benefits...
...AND LOWER SOCIAL SECURITY TAXES WHILE THEY WERE WORKING!
Posted by: MnZ | Sep 8, 2007 4:21:18 AM
We had 8 yrs.of Bill Clinton.We sure don't need 4 yrs.of another Clinton.
I believe all she is out for, is to get election.
Posted by: allen | Sep 8, 2007 7:03:35 AM
Corporations are forcing older workers out the door. I know because I was one of thousands of over 55 managers who suddenly became a "poor performer" when my company went through a merger.
In the real world, major corporations do not hire older workers and they push them out after age 55.
So working longer is not the option. Ask the hundreds of thousands of people who lost great jobs due to age discrimination. Get real!
Posted by: Michaele | Sep 8, 2007 10:20:17 AM
My question is, "HOW can we drain the Social Security Fund?" The money was deposited by the people for the express purpose of creating a retirement fund. If a business puts money in a bank account and another business borrows it the money is still credited to the the first business. If the retirement money was used for other things, the money is still on the books as belong to the retirement fund, or it is embezzelement. It may be a loan without interest for use in other areas, but it is still the peoples money for retirement purposes. Are there no bookkeepers on the US payroll? There is some mistaken logic at work here to fool the masses into believing there is no money in the Social Security Account. Crooks, get out of government. Any bank manager can tell you the logic is false.
Posted by: Anonymous | Sep 8, 2007 11:06:55 AM
Just do not spend the money. It is called "Saving". Save the money! Get with the program. The SS cash is not for you to spend! Wake up! If the politicos have any sense whatsoever they will read these columns on the web, then they will really know what the people think. But, do they really care? And what does that say about a democracy? I think we are in deep do do.
Posted by: edmcclelland | Sep 8, 2007 12:07:02 PM
How about 1)Not raising the tax, but keep tax at same rate. 2) Supplement the fund by either "starting or signup" existing companies to specificly mass sale some high demand quality products or services of various industries with 70% to 80% of gross profits going directly into fund. Consumer choice spending with incentitives. 3)Market/encourage end users(retirees) of Social Security funds to also purchase specific products or services (by choice) so that a portion of money continually cycles back into Fund.
Posted by: K.Hunter | Sep 9, 2007 7:17:58 PM
Von Hayek at Scragged laid out Hillary's "most successful program" pretty well. Look at the numbers in population growth versus the increase in benefit payouts in the same time period.
Posted by: Denice M | Sep 11, 2007 8:21:28 AM
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