 |
 |
The AARP of our generation, indeed!
June 20th 02:21:09 PM
Last week, I covered, in detail, why the President’s plan for Social Security reform stands to benefit our generation across-the-board (http://www.secureourfuture.org/blog.php?view=11). It would prevent the need for massive payroll tax increases (which the current system would demand), it would prevent the need for massive income tax increases or deficit spending (since the trust fund would no longer be a problem), and most importantly of all, it would provide each and every single one of us with the choice to invest part of our Social Security tax in the market, allowing us the opportunity to make more money than Social Security could ever stand to pay us.
Unfortunately, the road to reform is littered with bumps, obstacles, and obstructions. Worse yet, one of those obstructions is a group that claims to represent our generation. I speak of no other than Rock the Vote, a supposedly 'nonpartisan' organization that wants to be, according to its own people (http://blog.rockthevote.com/2005/06/its-wrap-rock-vote-awards_13.html), the 'AARP of our generation.' Rock the Vote has taken a staunchly anti-reform stance towards the issue of Social Security- a stance that is baffling, given that it claims to represent our generation, the youth of America.
But perhaps Rock the Vote really does want to be an AARP.
You see, the AARP is a group that claims to represent the senior citizens of America- those who are already on Social Security. The AARP exists solely to make sure that these retirees get as many benefits as possible- it only represents one small portion of our population, the one that is most dependent on entitlement programs. As such, the AARP has staunchly opposed any Social Security reform, demagoguing any changes as 'destroying the system.' Instead, the AARP advocates tax increases on the current workers who pay into Social Security.
Their talking points consist of numerous arguments, one of which is particularly surprising: that investing in the stock market would be like 'gambling at a casino.' This, of course, begs the question as to why the AARP itself offers its own members numerous investment-based retirement programs, and why the AARP itself invests its own funds heavily in the stock market. But I digress- the irrationality of AARP’s chief argument against personal retirement accounts and investing can clearly be seen when one looks at the stock market’s average return over its history, which vastly outperforms Social Security’s return.
The AARP advocating tax increases on other groups because of their own politics is one thing- after all, they must keep the support of senior citizens somehow, and what better way to do it than to try to go on a quest (as disingenuous as it is) to 'save Social Security' from those who are going to 'destroy' it with reform? The AARP is merely doing this as a PR campaign- to benefit themselves politically with their own senior citizens base, and with the Democratic Party, which it often allies itself with on these quests to extend entitlement programs with tax increases. Unfortunately, the AARP’s irrational arguments against Social Security reform don’t stop with the AARP.
No, the AARP has extended its politics, and is now trying to con the youth of America into the worst deal that could possibly be offered to them: opposing Social Security reform in the form of personal accounts, in favor of tax increases instead. Joining the AARP’s bandwagon in this effort is no other than Rock the Vote, the self-proclaimed 'AARP of our generation,' and a group that has closely worked with the AARP itself in the past few months.
The 'AARP of our generation', indeed!
Just today, Rock the Vote’s very own Hans Reimer, its 'expert' on Social Security reform, advocated increasing the payroll tax cap on worker’s incomes (http://blog.rockthevote.com/2005/06/if-i-cant-have-you.html). Proposals such as this have the taxable base extending from the current $90,000 to perhaps $150,000 or $200,000. This is the plan that the AARP often advocates, and it has been, for a while, one of the solutions that Rock the Vote has advocated to solve the Social Security funding problem. In addition to this, Rock the Vote staunchly opposes personal retirement accounts and the choice for American workers to invest part of their Social Security taxes in the stock market.
AARP and Rock the Vote, of course, disregard the fact that any such payroll tax cap increase would do little to solve the system. In fact, studies by the CATO Institute (http://www.cato.org/pub_display.php?pub_id=3780) have shown that even if the entire tax cap was removed entirely- taxing all of the income of every working American- would do nothing more than delay Social Security’s financial problems for eight years. Raising the tax cap to something along the lines of $150,000 would be even more useless- it would only delay Social Security’s problems for three years. After this amount of time, the system would be right back where it is today- in need of more reform, either through tax increases or another proposal. Additionally, such tax increases- especially the tax cap increase to $150,000- would hurt small business owners across the country, damaging their ability to hire employees, grow their businesses, and contribute to the economy.
Worst of all- and perhaps most appalling- is the fact that Rock the Vote staunchly opposes personal retirement accounts and the choice for working Americans to invest. In fact, Rock the Vote’s very own Hans Reimer has stated in the Rock the Vote blog that he would even prefer the current system over President Bush’s reform package (http://blog.rockthevote.com/2005/04/hard-sell-on-benefit-cuts.html)! As we discussed last week, the current system would mandate payroll tax increases, income tax increases, benefit cuts, deficit spending, or even a combination of the four, all without the choice for Americans to invest part of their Social Security taxes. All of this, with a 27% benefit cut in 2041, by the time most Americans in the younger generation start to retire. This is what Rock the Vote supports?
Apparently, it does. Rock the Vote would rather support the current system or ineffective tax increases instead of the President’s proposal for Social Security reform. Polls show that massive majorities of the youth of America- nearly 70%- want and support the President’s call for personal retirement accounts. Why, then, is Rock the Vote- the organization that claims to represent that very youth- opposing what seven out of ten young Americans want? Why is it taking the views of the AARP, which represents the polar opposite of the youth of America, and giving it precedence over what our generation really wants?
The answer is simple: Rock the Vote has decided to take its 'become the AARP of our generation' goal literally, and has chosen to become the AARP itself. Such an organization is not worthy of the support of the youth of America, until it truly starts to take the wishes, needs, and beliefs of that very youth of America into account. It is time for Rock the Vote to either drop the 'nonpartisan' label, and drop the 'representing the youth of America' label, unless it addresses the needs of the youth over its own blatant partisanship.
-Sunny Sidhu
Posted by Jonathan Swanson
|
|
|
|
|
