First it was Social Security, with Obama’s commission calling for an eventual 22% cut in the average recipient’s benefits even though Social Security is financially quite sound. Now public pensions are in the crosshairs:
From Path Is Sought for States to Escape Debt Burdens in The NY Times:
Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.
“They are readying a massive assault on us,” said Charles M. Loveless, legislative director of the American Federation of State, County and Municipal Employees. “We’re taking this very seriously.”
Mr. Loveless said he was meeting with potential allies on Capitol Hill, making the point that certain states might indeed have financial problems, but public employees and their benefits were not the cause. The Center on Budget and Policy Priorities released a report on Thursday warning against a tendency to confuse the states’ immediate budget gaps with their long-term structural deficits.
“States have adequate tools and means to meet their obligations,” the report stated.
What next? Raising taxes on
the wealthiest the working poor – again?