Why Eliminating The Cap On Earnings Taxed By FICA Is A Great Idea In One Chart

Effect of eliminating  cap on wages subject to FICA. From Office of Chief Actuary, SSA

Why Chained CPI Is Almost Pointless In One Chart

Effects of beginning chained CPI in December 2014.  From Office of Chief Actuary, SSA

Veterans Day

Fee Payment Update

Social Security has issued updated numbers on payments of fees to attorneys and some others for representing Social Security claimants. These fees are withheld and paid by Social Security but come out of the back benefits of the claimants involved. The attorneys and others who have their fees withheld pay a user fee for this privilege. Since these fees are usually paid at the same time that the claimant is paid, these numbers show how quickly or slowly Social Security is able to get claimants paid after a favorable determination on their claims.

Month/Year	Volume	Amount
Jan-13	32,663	$96,690,734.65
Feb-13	35,508	$102,242,540.93
Mar-13	45,189	$130,690,281.94
Apr-13	33,178	$92,566,832.32
May-13	42,841	$122,781,135.03
June-13	33,954	$97,627,420.68
July-13	35,221	$103,494,644.97
Aug-13	46,695	$129,774,228.90
Sept-13	33,295	$93,251,401.56
Oct-13	31,811	$87,109297.64

NADE Issues Newsletter

     The National Association of Disability Examiners (NADE), a membership organization of state agency personnel responsible for making initial and reconsideration determinations on Social Security disability claims, has issued its Fall 2013 newsletter.

Bombarding This Blog

     If you read the comments posted on this blog you might come to the impression that everyone knows that:

• Social Security employees do most of their "work" from at home but they don't really work because they're all lazy. The agency has way too many employees.
• Social Security's Administrative Law Judges are particularly lazy. They approve Social Security disability claims because they're lazy. A lot of the judges are crooks in cahoots with crooked disability claimants and their crooked attorneys.
• Most Social Security disability claimants are just crooks trying to scam the program.
• It's way too easy to get on Social Security disability benefits, especially for "mental illness." Anyone can get on Social Security disability benefits for "mental illness" just by pretending to be crazy.
• SSI child's benefits are the biggest scam. It's nothing but lazy, drug addicted mothers coaching their kids to act crazy. They get child after child on SSI child's benefits and then steal the money to support their drug habits.
• Attorneys who represent Social Security claimants are lazy. They're paid huge sums of money by Social Security but they do nothing for their clients. If anything, they're just crooks who assist their crooked clients in perpetrating fraud.
• There is no money in the Social Security trust funds. The money was all stolen by Democrats. The U.S. government bonds that are supposed to be in the trust funds are meaningless pieces of paper.
• Social Security is going bankrupt.You'll never get back the money you paid in. It's all a scam.

     Some of this comes from individuals legitimately expressing their opinions. However, it's long been apparent to me that most of this is coming from people who have been paid to post online comments about Social Security. Often, these people pretend to be Social Security employees, Social Security claimants or Social Security attorneys. Often, their comments just don't ring true because they're pretending to be someone they're not.

     Does it seem outlandish, even paranoid to think that someone would be paid to post slanted comments online? Take a look at this article from the Baltimore Sun. Officials at the University of Maryland had a problem. They wanted to shift the University's athletic programs from the Atlantic Coast Conference to the Big Ten. They knew that many of the University's alumni would be furious with this move. Here's what they did:

Brian Ullmann, the university's assistant vice president for marketing and communications ... wrote that the school planned to "engage professional assistance in helping to drop positive messages into the blogs, comments and message board sites. I will arrange for this service today." ...

Lee Zeidman, the corporate communications consultant who helped Maryland draft letters and talking points, said Wednesday that it is "standard operating procedure" in the business world to weigh in directly on message boards. "There are special PR agencies who work in the digital space who bombard blogs and newspaper sites where no one puts their name," Zeidman said.

     Who would pay online shills to post on Social Security issues? Pete Peterson and the Koch brothers are the prime candidates. They're tossing around tens of millions of dollars in their fight against Social Security. They certainly wouldn't be going after just this blog. It's quite unlikely they know anything about it. They would mostly be going after message boards at news media sites. However, I don't know that there's any other web site quite like this one where there's an ongoing discussion on Social Security issues. If you're doing an online campaign to malign Social Security both as a social program and as an agency, you're going to come here.
    I wonder how someone who works as an online shill would feel about their job. Would it make them proud? Would they tell their children about what they do for a living?

Anybody Can Make A Mistake

     The House Ways and Means Committee staff', controlled by Republicans, sent out a press release claiming that the chained CPI method of computing Social Security's Cost Of Living Adjustment (COLA) would have resulted in a 1.7% COLA this year instead of the 1.5% COLA that beneficiaries actually received. Wow, who says chained CPI would hurt Social Security recipients? There's just one little problem. The Ways and Means Committee press release was plain wrong and completely misleading.

Is Social Security Regressive

For Social Security

     Eduardo Porter writes in the Economix column at the New York Times that this chart shows that Social Security is regressive, that instead of helping poor people it hurts them because wealthier people live longer. The problem with Porter's argument is that he's basing it on race-ethnicity. The average age of whites is 41, African-Americans 30 and Hispanics is 27. What this chart does show is that the Republican party, which has become the de facto "white people's party", isn't likely to support changes that would cut Social Security. Only in theory and then they have to refer to "entitlements" rather than Social Security. People tend to think that "entitlements" are government benefits that go to someone else. They know that Social Security goes to everybody.