podesta_email_02399.txt

podesta-emails 1,257 words email

P17 P20 D6 D3 V16

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Thinking along very similar lines. On Saturday, September 5, 2015, Brent Budowsky <[email protected]> wrote: > For a variety of economic, social and political reasons I would suggest > that HRC > support an increase in social security benefits for recipients below a > certain net > worth threshold, and finance it by a combination of a small tax on Wall > Street trades, > and if necessary a graduated increase in the social security tax for those > earning > above a certain income. Sometime soon I will write a column suggesting > this and > wanted to give you a heads-up and suggest HRC advocate this. > > In brief: > > 1. Economic and social reasons: Seniors living on fixed incomes are > among the > most hard-pressed groups in America today. Their interest bearing yields > on bank > accounts, etc. lag far behind the real cost of living increases and their > Social Security > COLA's have been lagging behind the real inflation rate for many years, > leaving them > falling further and further behind. > > I would emphasize that a majority of seniors who would benefit from a > social security > increase are women, because they live longer, and because in most cases > for their > entire working careers they were receiving unequal pay compared to men > while > they were paying into the system. > > HRC and most politicians do not appreciate the severity of this from the > point of > view of poor and middle income seniors. They do not have a real-life or > intuitive > understanding of what it is like to pay ever-rising costs of groceries, > and medicine that is not covered by insurance, and other necessities whose > prices rise while fixed incomes decline in relative terms, because they are > either wealthy and/or live in worlds > inhabited without much daily interaction with fixed income seniors > struggling with this in their daily lives. > > An increase in social security benefits financed as I suggest would have a > net > stimulative effect to the economy and increasing economic equality and > social equity. > > 2. Financing: I like the idea of a small tax on Wall Street transactions > which would > raise substantial revenue without imposing material hardship on traders. > Bernie > has proposed this, to use the money for his free public college proposal. > The problem > with the free public college proposal, which I like in principle, is that > it is virtually > impossible to adequately restrain tuition costs, which needs to be done, > but without > doing this the transaction-tax-for-tuition trade would largely subsidize > higher > tuition and detracting from the benefit to students. > > By contrast, a transaction tax whose revenues went into the social > security fund to > fund an increase in social security benefits would be a straight trade > that would > support higher benefits. To address a legitimate issue, a combination of > some > means testing plus the transaction tax could enable this formula to > strengthen > long term social security financing while simultaneously financing some > increase > in benefits. We could simply take the revenue gain from the transaction > tax plus > the social security financing gain from the means test and divide the > financing > gains between one part increase benefits and the other part enhancing the > stability > of the system. > > 3. Democratic politics. Right now Bernie Sanders, Elizabeth Warren and > some > other progressives support increasing benefits. I agree with them on > principle and > policy and would advise HRC to join and potentially lead this. This would > rally > the Democratic base, divert some attention from you-know-what, and be the > kind > of initiatives Democrats should pursue for Democratic principles behind a > highly > popular Democratic government program that we should aggressively champion, > and not defensively back away from. > > When I write this column, if HRC opposes this, I would simply agree with > Bernie > and Elizabeth supporting it and would not mention HRC either way. If HRC > supports > this I would banner and give high praise to her leadership. > > 4. Democratic-Republican politics: I do not believe it is enough to > merely repeat > that we oppose Republicans who want to cut social security. That is fine > as far > as it goes, but is timid and stale and tends to ring like demagoguery and > does not > ring man bells with seniors because they have heard it before and we are > merely > arguing against a negative event that they know is unlikely in fact to > happen. > > By contrast, a call for an increase in social benefits would resonate with > voters > because it would involve a specific amount for the proposed increase that > all > seniors would immediately understand, view as directly improving their > lives > in measurable ways, and serve as one motivating issue for a potential > mandate > election that would have an outstanding chance of being enacted if HRC is > elected, > especially with more Democrats elected to the House and Senate with her. > > Additionally, if an increase in benefits were financed in whole or part by > a Wall > Street transaction tax, we would draw a stark contrast with Republicans on > both > ends of the trade where Democrats have the high ground and Republicans are > vulnerable. We support social security in ways they do not; we will > finance this in > a way that ask Wall Street to do their fair share in an age where there is > great > wealth on Wall Street and a need for economic fairness. > > This can but need not be accompanied with populist anti-Wall Street > rhetoric, > that is a political call. Res ipsa loquitur, the thing will speak for > itself, they want > to privatize social security and turn it into a new Wall Street profit > center; we want > to protect Social Security and increase benefits for poor and middle class > recipients. > > 5. Senior voters. Democrats have developed a growing weakness with senior > voters that this would directly address. And again I would emphasize that > a majority > of these beneficiaries are women, who simply live longer than men, and > begin with > a baseline of having worked for wages that were unequal in most cases for > their > entire careers while they were working. > > Politics and policies are both about choices. These are the choices I > would > recommend for HRC. > > Brent > > > > Sent from my iPad