Friday Alert   August 4, 2006
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Senate Blocks Estate Tax Cut/Minimum Wage Increase, Passes Pension Bill
On Thursday night, Senate Democrats blocked a Republican bid to combine an estate tax cut for the wealthy with a minimum wage increase for low earners.  The measure was “the product of election-year politics and clever -- critics say devious -- legislative packaging that has been dubbed the ‘trifecta,’" according to The Washington Post.  In the same bill, senators had to vote not only on the minimum wage and estate tax, but also on a laundry list of narrowly targeted tax breaks.  In the end, GOP leaders fell three votes short of the 60 needed to cut off debate and bring the three-part bill, H.R. 5970, to the Senate floor.  The final Senate vote on whether to limit debate was 56-42, after Senate Majority Leader Bill Frist (R-TN), who supported the package, switched his vote, enabling him to seek another vote later. 

Until late last week, the tax extensions were expected to move as part of a conference report on pension legislation (H.R. 2830) that had been in House-Senate negotiations for most of the past year.  However, GOP leaders in both chambers, working with House Ways and Means Chairman Bill Thomas (R-CA), decided to package those tax provisions together with the minimum wage increase and a permanent cut in the estate tax instead.  Prodded by moderate Republicans eager to deflect criticism that GOP economic programs overwhelmingly favor the wealthy, the House approved the package by a vote of 230-180 last Friday.  Included in the bill was a three-year, phased-in boost to the nation's minimum hourly wage to $7.25 from the current $5.15.  The increase, long sought by Democrats, would have been the first in nine years, but the proposed reduction in the estate tax would have lowered federal tax revenue by $268 billion over the next decade, according to one estimate.  George J. Kourpias, President of the Alliance, said, “Blocking this bill was a matter of economic and social justice.  The minimum wage increase should not have to come at such a high cost, when we already have enormous deficits.”  On June 8, the Senate fell three votes short of the 60 needed to invoke cloture on a motion to proceed to a full repeal of the estate tax.  Rep. Thomas had packed the combined bill (HR 5970) with new provisions aimed at winning over those final three votes, but the plan failed.

The Senate also passed landmark pension legislation, by a vote of 93-5, on Thursday night.  The House had voted to pass the pension bill, H.R. 4, by a vote of 279-131 last week, and it will now go to President Bush for signature.  The bill tightens funding requirements for pension plans, and it freezes benefits for plans that have fallen below the new requirements.

Officials Continue to Support Social Security Privatization Even With GAO Report
Despite what some may claim, Social Security privatization is not a dead issue to the Bush Administration.  In a D.C. Superior Court room last week, Karl Rove was seen working on a PowerPoint presentation about Social Security reform while he waited to be dismissed from a jury pool.  This week, new Treasury Secretary Henry Paulson touched on privatization in his first speech since taking office on July 10.  Paulson told the Columbia University business school that “The biggest economic issue facing our country is the growth in spending on the major entitlement programs: Medicare, Medicaid, and Social Security.”  He went on to say that he would not run from complicated Social Security reform and admired President Bush’s courage in addressing the issue.  Days before Paulson’s remarks, the Government Accountability Office (GAO) released a report detailing how Social Security privatization would reduce guaranteed benefits and increase retirement risks for Baby Boomers.  “The GAO report echoes what the American people have been telling President Bush for months now:  Privatization of Social Security is a risky, costly idea and quite simply, we don’t want it,” said Edward Coyle, Executive Director of the Alliance.

Heat Waves and Hurricanes Hit Seniors Hardest
Horrific natural disasters, such as Hurricane Katrina, receive intense media coverage and public attention.  However, in a typical year, heat waves kill more people in the U.S. than all other extreme meteorological events combined.  These two types of deadly weather occurrences do have one thing in common though: the majority of people who are killed are senior citizens.  In the case of Hurricane Katrina, 74 percent of those who died were 60 or older, even though that age group accounts for only 15 percent of the population in the New Orleans area, according to analysis by the Knight Ridder News Service.  As with Katrina, the Chicago heat wave in 1995 claimed the lives of many seniors.  Of the 700 Chicago residents who died in the 6-day heat wave, 73 percent were over the age of 65.  “It’s clear that emergency plans targeted specifically towards vulnerable seniors need to be developed,” said Ruben Burks, Secretary-Treasurer of the Alliance.  “As heat waves hit cities across the country this summer, it’s important to pay careful attention to the health of those who seemed neglected in past disasters.”

Leadership Travel
Edward Coyle travels to Atlanta on Saturday, August 5 to address the National Convention of the American Federation of Government Employees (AFGE).

Pelosi, Reid, Shields to Headline Alliance National Convention
The National Convention is coming up September 5-8, 2006 in Washington, D.C.  House Minority Leader Nancy Pelosi (D-CA), Senate Minority Leader Harry Reid (D-NV), and political commentator Mark Shields are confirmed speakers, and many other key Congressional leaders and political thinkers will share their wisdom for 2006.  Members will elect a president and secretary-treasurer, and at-large members will also elect six community-based board members.  Nominees must be members in good standing of the National Alliance.  Any self-enrolled (at-large) member may attend the meeting and is eligible to vote.  Register for the convention by calling 1-888-373-6497 or visit www.retiredamericans.org.  Attendees must register separately with the Washington Hilton and Towers (1-888-324-4586) to reserve an on-site hotel room.  The Alliance is waiving the late registration fee for the convention; therefore, registration will remain $80.  Please register for the convention and your hotel as soon as possible.

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