Cut FICA To Fight The Economic Damage Done By Covid-19?

     From Michael Hiltzik writing for the L.A. Times:

It’s natural for decision-makers grappling with a new crisis to dust off ideas tried in the last one, whether they were good ideas or bad. Here’s a bad idea, unearthed by President Trump from a decade ago: Cutting the payroll tax to goose the economy.

A payroll tax cut was part of the arsenal used by President Obama to fight the Great Recession in 2011. It was a bad idea then, and a bad idea now.

In remarks at a press conference Monday, Trump mentioned a payroll tax cut as a possible component of a stimulus plan to counteract a coronavirus-related economic slump. As of this writing, the administration hasn’t released any details.

Regardless of how it’s designed, however, a payroll tax cut would be poorly targeted, delivering the most help to households least in need. It would have only a diluted impact over time. And it would undermine Social Security, the program most dependent on the payroll tax. ...

Hourly workers sent home without pay or laid off because of the economic slowdown would get nothing. That would include the workers most vulnerable to virus quarantines or workplace closures, namely service workers such as waiters and waitresses, hotel staff and office cleaners.

Even for those still receiving paychecks, the payroll tax cut would be spread over the year via weekly or biweekly paychecks, providing a mere 10 bucks or so a week for a low-income household. ...

In 2011, the payroll tax cut was seen by Obama and his aides as an unpalatable choice forced on them by intransigent Republicans in Congress. ...

The payroll tax cut “was the best we could do at the time given the political constraints,” Furman notes. “But it was far from optimal then and would be even further from optimal now.” ...

What’s most unnerving about a payroll tax cut is its potential to undermine Social Security. ...

Using this income stream as a tool to pump stimulus into the economy threatens to erode Social Security’s position as a unique government program with its own revenue stream, a tax dedicated to its upkeep alone. Melding its own revenue with that of the federal government at large facilitates no one’s goals except those who want to see the edifice pulled down.

     Cutting payroll taxes isn't in the plans of House Democrats. If the President wants to get something passed, he's going to have to give House Democrats something they can say "yes" to.

Fichtner Nomination Advances

     The Senate Finance Committee will be meeting on Wednesday, March 11 to consider reporting out three nominations, including the nomination of Jason Fichtner to become a member of the Social Security Advisory Board.

Verizon Wins Big Contract

     From GCN (whatever that is):

Verizon has won a potential 10-year, $525 million contract to help the Social Security Administration operate its telephone systems and call service center.

But time will tell whether this is for keeps or not. Verizon was originally awarded the Next Generation Telephony Project in July 2019, then incumbent Tyto Athene and prospective newcomer General Dynamics IT quickly protested SSA’s decision.

SSA apparently pulled back the award to take a second look at bids and those protests were dismissed two months after they were filed. ...

For the new NGTP contract, SSA sought an industry partner that could operate the agency’s field office telephone system that is used by at least 1,500 field offices and 15 large site locations. The system is intended to have its four service delivery points geographically located by region, plus configured in a manner that allows for redundancy and fail-over operation in the event of outage.

Club Fed For Former SSA Employee

     From WBTW:

A Florence [SC] woman has been sentenced to more than a year in federal prison after pleading guilty to stealing benefits from disabled social security beneficiaries. 

Kianna Parrot, 31, used her government computer to defraud beneficiaries out of their Supplemental Security Insurance payments from September 2017 to June 2018 ... 

Officials with the Social Security Administration first noticed suspicious deposits to Parrot’s personal accounts from SSI accounts. The investigation revealed Parrot diverted SSI underpayments intended for legitimate beneficiaries to her own account.   

She accomplished this theft by using her Social Security Administration computer and personal identifying number to access the social security records of individuals owed SSI underpayments. ...

Police Officer Turned Away

     From WTVF:

An armed Metro Police Lieutenant running an errand was turned away from the Social Security Administration office in Madison.

He was trying to get a replacement social security card at the Cude Lane location. Fraternal Order of Police President James Smallwood serves as a voice for Metro officers. He said it's against department policy for them to remove their weapons while in uniform as it could put the public, and the officer, in danger. ...

A spokesperson for the Social Security Administration issued a statement:

"Under federal law, Federal Protective Service law enforcement officers and other law enforcement officers, performing official duties, are allowed to enter the premises with their weapons. Law enforcement officers visiting a Social Security facility to conduct personal business must secure their weapon at an appropriate location outside of the facility prior to entry." ...

New SSR On Education

     Social Security Ruling 20-01p will appear in the Federal Register on Monday. You can read it today. The obvious intent of the. Ruling is to make it really clear that Social Security won't consider inability to speak or read English in determining disability.

Why?

     CNN is asking why telework is being mostly eliminated at Social Security just as the Covid-19 virus is spreading.

Congressional Democrats Press For Resumption Of Telework As Response to Covid-19

     From a press release:

House Ways and Means Committee Chairman Richard E. Neal (D-MA) and Senate Finance Committee Ranking Member Ron Wyden (D-OR) today urged Social Security Administration (SSA) Commissioner Andrew Saul to return telework options to SSA employees amid the outbreak of COVID-19....

The Centers for Disease Control and Prevention (CDC) issued interim guidance last month for businesses and employers that reads in part, “for employees who are able to telework, supervisors should encourage employees to telework instead of coming into the workplace until symptoms are completely resolved.” ...

     As I keep saying, this sort of message would have a greater impact if delivered in person at an oversight hearing.

     By the way, the epicenter of Covid-19 in the U.S. at the moment is Seattle. Is Social Security doing anything different in Seattle? There's a regional office there so Social Security has a significant number of employees there.