Alliance for Retired Americans Friday Alert 8-1-14

Headlines:
Alliance Kicks Off Medicare Turns 50 Campaign With Events Across the Country
Trustees Report Shows Improved Outlook for Medicare Finances
Social Security Nominee Carolyn Colvin Begins Confirmation Process
Lawmakers Announce VA Deal, Confirm New Secretary
American Companies Dodging Taxes by Moving Addresses Overseas

Alliance Kicks Off Medicare Turns 50 Campaign With Events Across the Country
On Wednesday, Alliance members held more than 50 events in cities across the country in honor of Medicare’s 49th anniversary. The celebrations kicked off the Medicare Turns 50 Campaign leading up to next year’s 50th anniversary. The landmark health care program was signed into law by President Lyndon Johnson on July 30th, 1965. An Alliance-sponsored event on Capitol Hill saw speeches by Minority Leader Nancy Pelosi (D-CA) along with Reps. Jan Schakowsky (D-IL), Doris Matsui (D-CA), Marcy Katpur (D-OH), Xavier Becerra (D-CA), and Mike Michaud (D-ME). Diane Fleming, a member of the Maryland/DC Alliance, also spoke at the event. In her remarks, she described the importance of Medicare and Social Security in her life after United Airlines, which had employed her for nearly four decades, declared bankruptcy and she lost much of her pension. To view photos from the event, go to http://bit.ly/1xFTcWq.

State events included celebrations at Social Security field offices in California and protests in Florida at the offices of representatives, such as Rep. Steve Southerland (R-FL), who have voted to cut the program. The Medicare celebration in Texas coincided with the American Legislative Exchange Council (ALEC)’s annual meeting in Dallas. ALEC is a corporate funded group that provides state politicians with corporate-authored draft legislation that is then introduced, often verbatim, into state legislatures across the country. As part of an anti-ALEC coalition, the Texas Alliance for Retired Americans staged a protest at the meeting site.

Richard Fiesta, Executive Director of the Alliance, traveled to Dallas to meet with the Texas Alliance and took part in the protests. “Corporate front groups like ALEC are working behind the scenes to cut and privatize Medicare,” said Mr. Fiesta. “We are here to preserve and protect it, and make sure proposals such as those contained in the Paul Ryan budget – which would cut Medicare funding by turning it into a voucher program – never become law,” he added. To view photos from the protests, go to http://bit.ly/1u4ixZT.

Trustees Report Shows Improved Outlook for Medicare Finances
Earlier this week, the Social Security and Medicare Trustees issued their annual report on the financial health of the Social Security and Medicare Trust Funds. According to this year’s projections, the Medicare trust fund is fully solvent until 2030, 4 years longer than predicted in last year’s report and 13 years longer than in 2009, the year before the Affordable Care Act (ACA) was passed. Analysts attribute the improvement to efficiency gains resulting from the Affordable Care Act along with slow wage and price growth during the Great Recession. Though average spending per Medicare beneficiary is expected to remain flat for the next few years, it is projected to rise in the coming decade, due in part to rapidly rising prescription drug costs. “The improved financial outlook for the Medicare trust fund is a sign that the Affordable Care Act is doing its job to bring down health costs. Congress can further strengthen Medicare by passing the Medicare Drug Savings Act to stop big drug makers from price gauging and allow Medicare to negotiate the lowest, discounted rate for prescription drugs,” said Barbara J. Easterling, President of the Alliance.

The Social Security trust fund ran a $32 billion surplus last year and is on track to remain solvent through 2033, the same as expected last year. The trust fund reserves for Social Security Disability Insurance (SSDI) are projected to be exhausted in 2016. While Congress has previously reallocated funds a number of times to extend the life of the program, Republicans are expected to use attacks on SSDI as a tool to undermine support for the entire Social Security system. For more on the report, go to http://nyti.ms/1s6JMT0. Read about GOP plans to attack SSDI at http://bit.ly/1oeYFhh.

Social Security Nominee Carolyn Colvin Begins Confirmation Process
On Thursday, Carolyn Colvin, President Obama’s nominee to lead the Social Security Administration (SSA), had her confirmation hearing at the Senate Finance Committee. Colvin has served as Acting Commissioner of the SSA since February 14th, 2014 when the term of her predecessor, Bush appointee Michael J. Astrue, expired. Colvin’s nomination begins her confirmation process at a time in which the SSA has faced questions from members of Congress over Social Security field office closures and service cuts. To read Acting Commissioner Colvin’s remarks before the committee, go to http://1.usa.gov/1pugfSi.

Lawmakers Announce VA Deal, Confirm New Secretary
On Monday, House and Senate negotiators announced they had reached an agreement to overhaul the Veterans Affairs (VA) health care system. The overhaul comes in response to revelations earlier this year of long wait times at VA facilities and efforts by VA administrators to cover up the problems. The bipartisan agreement was brokered by Sen. Bernie Sanders (I-VT), head of the Senate Veterans Affairs Committee, and Rep. Jeff Miller (R-FL), head of the House Veterans Affairs Committee. The $17 billion agreement scales back separate plans previously passed by the House and the Senate after lawmakers expressed concerns about the $35 billion cost. For more on the overhaul, go to http://on.msnbc.com/1xFLiMw.

The Senate also voted 97-0 this week to confirm Robert McDonald to lead the Veterans Affairs Department. A former US Army Captain, McDonald previously headed the consumer products company Proctor & Gamble. McDonald’s confirmation follows the resignation of former Secretary Eric Shinseki in May. More on the confirmation at http://wapo.st/1pIZ6By.

American Companies Dodging Taxes by Moving Addresses Overseas
In a process known as “inversion”, American corporations are purchasing smaller firms in low tax countries in order to avoid taxes by simply switching to an overseas address. The drug makers Mylan and AbbVie recently began dodging taxes through inversion, and the retailer Walgreens is currently considering following suit. “At a time when families are being hurt by steep budget cuts in Washington, these American corporations are skipping out on their tax responsibilities by simply changing their address. Congress needs to take action to put an end to this practice and make sure American companies pay their fair share,” said Ruben Burks, Secretary-Treasurer for the Alliance. Read more on corporate tax dodging on the AFL-CIO NOW blog at http://bit.ly/1txUHZ1.

For a printable version of this document, go to http://bit.ly/1nSs45w.

For the Alliance's Spanish language page, which includes last week's Friday Alert in Spanish, go to www.alianzadejubilados.org

Alliance for Retired Americans Friday Alert 4-18-14

Headlines:
On Tax Day, Alliance Calls for End to Corporate Tax Loopholes
Social Security to Stop Collecting Relatives’ Old Debts by Intercepting Tax Refunds
City of Detroit Reaches Preliminary Bankruptcy Deal Involving Pensions
Corporate-Backed Debt Reduction Group Facing Money Troubles
Commemorations Mark Centennial of Ludlow Massacre
Fiesta Addresses Machinists
Just Over a Week until Start of National Membership Conference in Las Vegas

On Tax Day, Alliance Calls for End to Corporate Tax Loopholes
In honor of this week’s Tax Day, the Alliance asks members to contact Congress and demand the end of two huge tax loopholes that benefit giant corporations. Congress is expected to return from its break and take up a bill that would renew $80 billion in tax breaks for corporations that move profits and jobs offshore. If you have not already done so, please sign the petition to Congress here: http://bit.ly/1gyoMgp. While corporations were dodging taxes, their CEO’s were taking in outrageous salaries. Find out how much CEO’s are making compared to workers at the AFL-CIO’s Executive Paywatch site: http://bit.ly/1jL2ZG7.

“If we can get Congress to end these loopholes, we'll be taking a tremendous step, and showing elected officials that we're watching to see if they're supporting the biggest corporations – or the people they represent,” said Richard Fiesta, Executive Director of the Alliance.

Social Security to Stop Collecting Relatives’ Old Debts by Intercepting Tax Refunds
In the wake of revelations about its efforts to collect on old debts, Acting Social Security Administration Commissioner Carolyn Colvin announced that the agency will stop attempts to collect taxpayer debts dating back more than 10 years. The Washington Post revealed that thousands of taxpayers expecting refund checks had received letters informing them that the Treasury Department had intercepted their refunds in order to cover debts that many of them never knew existed. The debts, often incurred by parents, were the result of Social Security benefit over-payments, sometimes dating back decades.  This debt collection effort was the result of a provision placed into the farm bill three years ago.

The decision to suspend collection came after hundreds of taxpayers, whose refund checks had been intercepted, contacted members of Congress complaining that they been given no notification of the debt and no explanation as to why they were responsible for the debts of their deceased parents. For more details on the announcement go here: http://wapo.st/1mdGYk6.

“It doesn’t make sense for the Social Security Administration to confiscate taxpayers’ refunds to cover old debts created by their relatives,” said Barbara J. Easterling, President of the Alliance. 

City of Detroit Reaches Preliminary Bankruptcy Deal Involving Pensions
On Tuesday, Detroit’s emergency manager Kevyn Orr announced that deals had been reached on pension cuts for 23,000 workers and retirees. The city of Detroit is currently attempting to emerge from the largest municipal bankruptcy in the nation’s history, and pension cuts have been proposed as a step towards addressing the city’s $10 billion in unfunded liabilities. The first agreement, with the Retired Detroit Police and Fire Fighters Association, would avoid cuts to current pension benefits altogether but involve a nearly 50% reduction in cost of living increases. The other agreement, with the General Retirement System, would involve a 4.5% reduction in benefits and the complete loss of cost-of-living adjustments. Though painful, the cuts are significantly less severe than Mr. Orr’s original plan, which would have seen cuts of up to 34% for most retirees and 14% for police and fire workers. The pension deals are in part the result of $816 million in funding provided by the state, private foundations, and the transfer of city-owned artwork to the Detroit Institute of Arts. Workers and retirees affected by the agreements will still have to approve the measures before they go into effect.

Corporate-Backed Debt Reduction Group Facing Money Troubles
Politico reports that The Fix the Debt Coalition, a group calling for debt reduction through cuts to Social Security, Medicare, and Medicaid, is itself exhibiting signs of increasing financial strain. The organization recently terminated a year long, $200,000 relationship with Mehlman Vogel and Castagnetti, a DC lobbying firm. This is the second firm the Fix the Debt Coalition has dropped in the last month and comes on the heels of revelations of financial trouble at the organization earlier this year.

“Clearly, people value their Social Security, Medicare and Medicaid benefits enormously,” said Ruben Burks, Secretary-Treasurer of the Alliance. “I believe the leaders of ‘Fix the Debt’ under-estimated the importance of those programs to millions of seniors when they set out to cut them.”

Commemorations Mark Centennial of Ludlow Massacre
Sunday will mark the 100th anniversary of the Ludlow Massacre, the most violent incident of the southern Colorado Coal Strike and an event seen as a turning point in the American labor movement. The Massacre occurred after striking miners organized by the United Mine Workers of America were evicted from company-owned housing and took up residence in tents just outside of Ludlow, Colorado. On April 20th, 1914, Colorado militiamen, company guards, and hired strike breakers began firing on the camp and setting the striking miners’ tents on fire. During the Massacre, at least 20 people were killed, including a group of women and children who suffocated when the tent in which they had taken shelter went up in flames. The horror is widely seen as bringing increased national attention to labor issues, including working conditions, safety, and worker representation. In commemoration of the Massacre’s centennial, events are being held throughout Colorado. To get involved, you can find a complete listing of these events at http://bit.ly/1r2q6gx. You can connect to the Ludlow Centennial Commemoration on Facebook and learn more about the fallen miners and their families at https://www.facebook.com/Ludlow100. Alliance member Dennis Creese recently covered the issue on KGNU at http://bit.ly/RsMF3K.

Fiesta Addresses Machinists
Mr. Fiesta was in Placid Harbor, Maryland on Wednesday to speak at the Machinists Union Political Training and Education Seminar.

Just Over a Week until Start of National Membership Conference in Las Vegas
It is not too late to register for the Alliance for Retired Americans 2014 National Membership Convention at Bally’s Hotel in Las Vegas, Nevada, April 28 through May 1. Workshops are slated to include State Battles: Fighting Back Against ALEC (the American Legislative Exchange Council); Seniors/Retirees Re-entering the Workforce; Messaging for the 2014 Midterm Elections and Beyond; and several others! More info is at http://bit.ly/1hYpj0g.

For a printable version of this document, go to http://tinyurl.com/pysgs9n .

For the Alliance's Spanish language page, which includes last week's Friday Alert in Spanish, go to www.alianzadejubilados.org