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Politics & Government

Social Security Group Skirmishes with AARP

AARP is under fire after a Wall Street Journal article hinted that the group would be open to Social Security benefit cuts.

A group aiming to halt major changes to Social Security is tussling with one of the nation’s most powerful lobbying groups.

Late last month, a group called Strengthen Social Security sent out a press release touting polling that supports employees and employers to pay Social Security taxes on all wages above $106,800.

The poll from Lake Research Partners that was commissioned earlier this year showed that 71 percent of Missouri respondents would vote for a hypothetical candidate who would raise that aforementioned cap over a candidate who wants to cut benefits or increase the retirement age.

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Lake Research Partners is a Washington, D.C. polling firm that primarily serves Democratic candidates and interest groups.

“Far from supporting cuts, voters see the cap on Social Security taxes as a tax-loophole that should be closed,” said Celinda Lake, who was involved in the poll, in a statement.  “Voters are strongly willing to vote for candidates based on their position on this issue: majorities across party lines, including a majority of tea party supporters say they would be more likely to vote for the candidate that closed this loophole.”

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That polling information was effectively in response to a Wall Street Journal article that came out last month suggesting that the AARP – one of the most powerful interest groups in the country – would consider dropping its longstanding opposition to cutting Social Security benefits. AARP did not end up joining Strengthen Social Security, which the Journal noted was an example of their new approach.

“The polling confirms that what many experts believe is the best policy is also the best politics—no benefit cuts; scrap the Social Security tax cap instead,” said Nancy Altman, co-chair of the Strengthen Social Security Campaign, in a statement.

In response to the Wall Street Journal article, AARP CEO A. Barry Rand said in a statement that “contrary to the misleading characterization in a recent media story, AARP has not changed its position on Social Security.”

“Social Security is a critically important issue for our members, their families and Americans of all ages, especially at a time when many will have less retirement security than previous generations with fewer pensions, less savings and rising health care costs,” Rand said in the statement. “And, as we have been for decades, we will continue to protect this bedrock of lifetime financial security for all generations of Americans.” 

Merton C. Bernstein, a law professor at Washington University, said in a statement that the AARP’s stance on the issue doesn’t change “the fierce and solid public support for an unimpaired Social Security program for current retirees, near-term retirees and all future retirees —the major victims of possible benefit reductions.”

“Whatever stance AARP has taken, it does not provide ‘cover’ for the Obama Administration to agree to cut benefits now, soon or in the future,” said Bernstein, who serves as the Walter D. Coles Professor Emeritus at Washington University in St. Louis School of Law.” If AARP does not vigorously and clearly repudiate what some see as willingness to accept benefit cuts, AARP will be the loser.”

A spokesman for U.S. Rep. Russ Carnahan in June that the St. Louis Democratic lawmaker supports raising the $106,800 cap. During a meeting at an , Carnahan – who currently represents Oakville in Congress – also discussed cost of living adjustments for the program.

He said in 2010 and 2011, the cost of living adjustment turned out to be zero. He said the formula that determines those payments does not “adequately, I believe, reflect the unique costs seniors have.”

“I’ve been involved in an effort to fix the formula so that it more accurately reflects costs for seniors,” said Carnahan, adding that there was an initiative to provide $250 checks in lieu of a cost of living increase. “When you’re in this gap period, we can still try to do some things that recognize that even though this old type of formula is in place that we still need to look for ways in this interim to address those kinds of shortfalls.”

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