Kasich Doubles Down On Handing Social Security Over To Wall Street Banks That Tanked The Global Economy

COLUMBUS — Yesterday in New Hampshire, Gov. John Kasich proudly proclaimed his support for cutting Social Security benefits for baby boomers and handing Social Security funds over to the same Wall Street banks that caused the Great Recession — and coincidentally turned Kasich into a millionaire.

“As we gear up to celebrate Social Security’s 80th birthday later this week, under a President Kasich, Social Security might not live to its 90th birthday,” said Ohio Democratic Party Chairman David Pepper. “Kasich wants to slash benefits for baby boomers who have worked and saved their whole lives, and for young people, he wants to give away Social Security funds to the same Wall Street banks responsible for the financial meltdown. If we’d done as Kasich suggests, millions of Americans would have seen their Social Security checks go up in flames in 2008. Thankfully, when President George W. Bush tried to push Social Security privatization, Senate Democrats stopped the proposal dead in its tracks. Kasich should put his plan back on the trash heap of failed GOP policies.”

Last night Kasich told a New Hampshire audience:

KASICH: “On entitlements, they all need to be — so let me give you my basic feeling on it. If you’re on it, we don’t want to take it away.  The baby boomers are going to have to give some on it. Not sure what it’s going to be yet, because I gotta go back and do all the numbers again. And for the younger people I still like the idea of giving them an opportunity to earn money through the strength of our American economy, with Social Security included in that.”

WATCH: 

Here in Ohio there are nearly 2.3 million Social Security beneficiaries — almost one in five Ohioans. That works out to $32.7 billion in total annual benefits for Ohioans. In addition,

  • Social Security lifted 919,000 Ohioans out of poverty in 2013, and

  • Social Security provided benefits to nearly 167,000 Ohio kids in 2014.

Despite the importance of Social Security for millions of Ohioans, Kasich has attacked the program as governor. Kasich’s 2015 budget proposal would have taxed Ohio seniors on their Social Security income.

Kasich worked at Lehman Brothers during the 2008 economic collapse and earned $1.4 million that year in salary and bonuses from the Wall Street firm. According to financial disclosure records released before the Republican debate, Kasich and his family now have a net worth between $9.1 million and $22.3 million.

BACKGROUND:

Kasich has been pushing these failed ideas for decades.

AS A CONGRESSMAN, KASICH INTRODUCED THE “PERSONAL RETIREMENT SAVINGS ACCOUNT ACT OF 1998”

Kasich Introduced The “Personal Retirement Savings Account Act Of 1998.” “Personal Retirement Savings Account Act of 1998 – Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to add a new part B (Personal Social Security Plus Accounts). Establishes in the Treasury a Social Security Plus Fund to hold 80 percent of the surplus (if any) in the Federal budget for each fiscal year for investment in accordance with rules governing the Thrift Savings Plan which shall otherwise govern other Fund operations.” [HR 3456, 105th Congress, Introduced 3/12/98]

National Committee To Preserve Social Security & Medicare: “Personal Retirement Accounts = Social Security Privatization.” [National Committee To Preserve Social Security & Medicare, accessed 7/15/15]

KASICH’S PLAN WAS A “STEALTH PRIVATIZATION”

Princeton Study: Kasich’s Social Security Plan Is “Stealth Privatization” By Establishing A Precedent And Infrastructure For Investing Revenue From Payroll Taxes Into Individual Accounts. “The Kasich plan has several political advantages. …Once all these individual accounts are established, however, they provide both a precedent and the infrastructure for investing a portion of workers’ payroll taxes in individual accounts. It is stealth privatization.” [Political Science Quarterly, Princeton University, Vol. 113 No.2, 1998]

Princeton Study: Kasich’s Plan Was “A Clever Political Package That Makes The Transition To Partial Privatization Much Easier.” “The Kasich plan has several political advantages…It is a clever political package that makes the transition to partial privatization much easier, especially for those Republicans who consider that raising taxes is heresy.” [Political Science Quarterly, Princeton University, Vol. 113 No.2, 1998]

KASICH HAS TOUTED THE SOCIAL SECURITY PRIVATIZATION PLAN ON THE CAMPAIGN TRAIL

Kasich Reminded A New Hampshire Audience That As A Congressman, He Favored Private Investments Accounts. “But Kasich took one step further Monday by reminding the audience that as a member of the U.S. House, he favored allowing younger Americans to divert a small percentage of their Social Security taxes into private investments accounts.” [Columbus Dispatch, 7/15/15]

AS GOVERNOR, KASICH PROPOSED MAKING SENIOR CITIZENS PAY TAX ON THEIR SOCIAL SECURITY BENEFITS

HEADLINE: “Governor’s Ohio Budget Proposal Includes New Taxes On Social Security Benefits.” [Northeast Ohio Media Group, 2/4/15]

  • Senior Citizens Would Have To Pay Taxes On Social Security Under Kasich’s Budget Proposal. “Gov. John Kasich’s proposed budget calls for slashing state income tax rates for everyone, and ditching the tax completely for nearly all self-employed people on the money they make from their personal businesses. But one group might not fare as well under the governor’s 718-page Blueprint for a New Ohio: senior citizens.” [Northeast Ohio Media Group, 2/4/15]

 

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