The key things to guard against are any carve-out of payroll tax revenues and any reduction in benefits.
I'm worried about Stern & this commission, but for other reasons.
On Tue, May 4, 2010 at 11:00 AM, Doug Henwood <dhenwood at panix.com> wrote:
> <http://thehill.com/blogs/on-the-money/budget/95753-seius-stern-says-wh-fiscal-commission-should-look-at-private-retirement-accounts>
>
> SEIU's Stern says fiscal commission should look at 'add-on' private
> retirement accounts
> By Walter Alarkon - 05/03/10 07:09 PM ET
>
> Andy Stern, the powerful union leader and member of President Barack Obama's
> fiscal commission, said the panel should consider private retirement
> investment accounts while reviewing Social Security, a move that Democrats
> have staunchly opposed.
>
> "This Commission should examine our country’s entire retirement security
> system, private and public," Stern said in a letter to the commission's
> co-chairmen released Monday. "Taxpayer dollars are spent in a multitude of
> ways, not just on Social Security with the aim of promoting retirement
> security. Yet, many Americans retire with anything but security. We should
> include as part of our agenda ideas for strengthening the private parts of
> the retirement security system, reviewing both the adequacy and solvency of
> the Social Security system, and the possibility of add-on universal private
> accounts."
>
> Democrats once blasted President George W. Bush for his plan to let people
> use some of the money they paid in Social Security payroll taxes to start
> private investment accounts. Democrats derided Bush's plan as
> "privatization" of a popular government entitlement that could put it at
> risk. But Stern's suggestion is different, however, because he suggests
> "add-on" private accounts, SEIU spokeswoman Lori Lodes said. Bush wanted to
> allow people to start private accounts with money designated for the Social
> Security system.
>
> Obama has asked the 18-member bipartisan fiscal commission to produce a plan
> to deal with the massive federal debt levels projected over the next few
> decades. Obama and commission members have said "everything is on the
> table," including changes to tax, spending and entitlement policies.
>
> Stern also called for the group to review all entitlement programs, tax code
> reforms, comprehensive immigration reform, a new budget process and changes
> to defense spending.
>
> In a 2005 New York Times Magazine profile of Stern, writer Matt Bai said the
> SEIU leader was "willing to entertain an overhaul of Social Security."
> Stern, Bai wrote, thought Republicans had been "vibrant" in coming up with
> new ideas while Democrats were "defending 60-year-old ideas." Stern had said
> he wanted to hear from an "eclectic group of Democrats to begin outlining a
> new economic agenda."
>
> ''We want people who might say, for example, 'Maybe privatization isn't such
> a terrible thing for people,' even if that's not what the Democratic Party
> thinks. Or, for example, 'Wal-Mart isn't the worst thing for the economy
> after all.' ... We need to shock people out of their comfort zone and make
> them think.''
>
> (Post updated at 8:25 p.m.)
>
> --
>
> Stern's letter
>
> May 3, 2010
>
> The Honorable Erskine Bowles
> The Honorable Alan Simpson
> Co-Chairs, National Commission on Fiscal Responsibility and Reform
> 80 F Street, NW
> Washington, D.C. 20001
>
> Dear Chairman Bowles and Chairman Simpson:
>
> I want to take this opportunity to express how honored I am to work with you
> and the other Commissioners to address our nation’s fiscal challenges. As
> our nation struggles to recover from a jobless decade, our mission is clear:
> we need to help build a national economic plan that achieves fiscal balance
> and helps grows the economy. We have to earn our way to a strong middle
> class through sustainable job and wage growth. In short, our country needs a
> 21st century fiscal plan that creates good jobs, is fiscally sustainable,
> and helps us compete with the rest of the world’s growing economies.
>
> With this challenge in mind, I want to ensure that a series of issues are
> considered during this process:
>
> 1. Improve the Budget Process. In addition to responsible levels of
> spending--ending waste, fraud and abuse, the use of earmarks, the
> implications of 2 year budget process, and ensuring budget enforcement
> should be priorities for discussion.
>
> 2. Reform Defense Spending. As you know, the US spends almost as much as the
> rest of the world combined on its defense budget, $625 billion in the last
> fiscal year. Defense spending must be on the table for discussion. The
> Commission should first focus on cutting waste out of the defense budget,
> reforming how we develop the budget, auditing current and future
> expenditures, and reviewing how we contract for services. America needs to
> guarantee that our country remains safe from foreign threats, supports our
> troops and our veterans, and protects Americans from terrorists. But it is
> also important to determine what is truly necessary, and can America
> continue to spend as much as the rest of the world combined on defense and
> still be able to compete in a global economy when China and other nations do
> not contribute the same proportions to global security.
>
> 3. Reform the Tax Code. A number of Commissioners have already contributed
> useful ideas for reforming the tax code. What strikes me about all that has
> been said is that we have a unique opportunity to recommend comprehensive
> reform to the tax code—in addition to any consideration of raising revenues
> for fiscal sustainability. This Commission should examine reforms that
> promote fairness and simplicity, effectiveness and efficiency, taxpayer
> rights, and that lower corporate marginal tax rates while focusing on
> effective rates to help create American jobs and close corporate tax
> loopholes.
>
> 4. Review All Entitlements. I agree with many Commissioners who have said
> that all entitlement programs should be on the table. We should include tax
> entitlements as part of that conversation. The Commission should examine how
> much these entitlements cost and their economic value.
>
> 5. Strengthen Retirement Security. This Commission should examine our
> country's entire retirement security system, private and public. Taxpayer
> dollars are spent in a multitude of ways, not just on Social Security with
> the aim of promoting retirement security. Yet, many Americans retire with
> anything but security. We should include as part of our agenda ideas for
> strengthening the private parts of the retirement security system, reviewing
> both the adequacy and solvency of the Social Security system, and the
> possibility of add-on universal private accounts.
>
> 6. Comprehensive Immigration Reform. The Commission should also examine the
> fiscal implications of comprehensive immigration reform. Reforming the
> immigration system to provide for legalization of existing undocumented
> workers could have important consequences for economic growth and fiscal
> balance. It could increase revenues by reducing tax evasion by employers
> using the underground non tax economy, ensure more compliance with Social
> Security requirements, raise wages, and create tax fairness and compliance.
>
> Some Commissioners have already noted the importance of educating the public
> about the need for fiscal reform. I could not agree more. To that end, I
> think it will be vital for the Commission to explain how all of the
> proposals we discuss would affect the short-term and long-term budget,
> economic growth, employment and income distribution.
>
> I am excited about this opportunity and anxious to get to work. I believe
> America’s future is not a matter of chance, it is a matter of choice and it
> is time to decide on our economic future. I am available at any time to
> discuss these ideas in more detail. I look forward to working with you in
> the coming months.
>
> Sincerely,
>
>
>
> Andy Stern
> President
>
>
>
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