Published: August 14, 2008 09:02 pm         

Obama adviser talks Social Security

TERRE HAUTE — Social Security is a success story, one that should be strengthened, not privatized, by lifting the federal payroll tax cap on earnings above $250,000, said Dean Baker from U.S. Sen. Barack Obama’s presidential campaign.

The proposed increase, possibly between 2 to 4 percentage points, would affect about 1 percent of taxpayers, Baker said Thursday at a “roundtable” campaign stop at Ivy Tech Community College, 8000 S. Education Drive.

Baker is national policy director for Obama’s campaign and co-director of the Center for Economic and Policy Research in Washington, D.C.

As baby boomers approach retirement, Baker said current projections show Social Security paying benefits though 2046 with no changes.

“The strength of Social Security at the end of the day is connected with the strength of the economy. One of the reasons we have 2046 as the date of a first shortfall is because so much money has gone to people at the high end,” Baker said.

“You are only taxed [for Social Security] on money earned under $102,000. Because more money goes to people at the high end, less is subject to the tax. If we adopt good economic policies that increase the wages of ordinary workers, you will have more money going to those in the middle and bottom [income levels] and that will improve the health of the [Social Security] program,” Baker said.

U.S. Sen. John McCain, the presumed GOP presidential candidate, said Thursday “everything has to be on the table” in discussing Social Security, according to a United Press International NewsTrack.

McCain has stated that Social Security should be supplemented with personal accounts. McCain in 2004 claimed that Social Security could not be preserved without privatization.

“Social Security is a success story,” Baker said. “The program is strong and Sen. Obama proposes to make it stronger. Republicans say it is on its death bed, and that is not true.

“Retirement savings is the issue. Social Security is what is working. What is not working is our pensions with fund benefit plans as companies go away or companies get out of them,” Baker said.

Thursday marked the 73rd anniversary of the signing of the federal Social Security Act of 1935. State Rep. Clyde Kersey, D-Terre Haute, and Evansville Mayor Jonathon Weinzapfel spoke before Baker, each supporting Obama’s Social Security plan.

Baker said Social Security is efficiently run, as administration costs for Social Security requires six-tenths of 1 percent, while estimates from 2005, when President Bush sought private investments accounts, showed such costs at 5 percent from a private system, Baker said.

“It is a guaranteed benefit, we don’t have to worry that the stock market is down. Here we have Social Security, that is a well-run, long-established system and people don’t miss their check,” yet Baker said suggestions have been made that Social Security “money be given to the same people who gave us the sub-prime mess. That doesn’t make a lot of sense to me,” Baker said.

n Before those discussions, Karen Henderson, director of marketing and communications at Ivy Tech, voiced concern to the Tribune-Star about the meeting. In a statement, Henderson said, “The College is a public body of the state of Indiana and has no official or unofficial support of any political party or candidate nor does it engage in political activities. In addition, college policy states: ‘non-employees are not permitted to solicit, nor distribute or post materials, without the permission of the chancellor or designee. Report all such activity to the appropriate regional administrative office’.”

Henderson added that, “Information provided to Ivy Tech Community College – Wabash Valley Region was that this event, ‘Indiana Campaign for Change,’ was hosted by the Democratic Party. It was described as a panel discussion for ‘invitees only.’ There was no mention of the media being invited to the event.”

Jonathan Swain, Indiana communications director for Obama’s campaign, said the meeting was meant as a public forum and “that the location in no way suggests the support for any particular candidate or campaign. We were looking for a public venue to hear public discussions.”

Swain said it was communicated to Ivy Tech that it was an event for Barack Obama’s Campaign for Change. “That was communicated. If there was some miscommunication, we certainly apologize for that,” he said.

Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com