Warren Says Abolish CEO Subsidy


Read this:  Sometimes a bill being proposed in congress makes so much sense you wonder “why hasn’t that already been done?”  Usually that is why.  It makes too much sense.  Maybe I am a little too cynical here and maybe not.  Luckily we now have a very active watchdog in the US Senate, looking for ways to make corrections and call out what is “just not right”.

As she so often does, MA Senator Elizabeth Warren saw an obvious need to correct things.  ” For only the third time since 1972, elderly Americans won’t be receiving a cost-of-living increase in their Social Security benefits.”  Different from popular Republican myths, Warren knows that the “majority of Social Security recipients don’t have income from other sources, and rely on benefits that are already fairly meager.”  That means a cost of living adjustment will hurt, and like the Republican plan so often does, it will hurt those who can least afford it.  Warren “and 16 Democratic colleagues have stepped into the breach proposed a bill on Thursday that would provide seniors with a one-time emergency payment of 3.9 percent of annual benefits, which would average out to a $581 payment.”  How would we pay for that you ask.  It just so happens there is a “hidden benefit for corporate CEO’s that that would virtually fund this benefit for Social Security.  This amount “is the exact amount that CEO compensation at the top 350 US firms increased last year. The top 100 CEOs have a combined $4.9 billion saved for retirement, which equals the cumulative retirement savings of 116 million Americans.”  What is really amazing is that “those CEO retirement accounts are explicitly subsidized by US taxpayers; the government provides CEOs with special tax-deferred retirement options and unlimited corporate deductions for executive ‘performance pay.’ Almost half of the retirement assets held by Fortune 500 executives are in these tax-deferred plans, which are not available to most of the executive’s employees.”  Most of us don’t know about these little perks we are paying for the 1%.  Instead our attention is diverted by negative media stories about efforts to help those who are “actually in need”.

Read the article in the link below found in The Nation Magazine, by George Zornick and find ways to support this bill and others like it.  Remember, in a democracy it is up to all of us (not just Senator Warren) to constantly watch, participate and battle inequalities.



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