Decaturight

Happy Independence Day

We're independent of England, but increasingly dependent on a growing federal government which is spending money like it can just print more. Oh, wait, it can. But that too has negative repurcussions.

Entitlement program in the Energy bill

From Jamie Dupree's blog:

On page 1193, the bill would add a section to the Social Security Act on an "Energy Refund Program."

Basically, those making no more than 150% of the poverty line, would get monthly cash payments from the government to offset the extra costs that are caused by this bill.

In other words, as your energy bill goes up, the feds will help offset that increase.

That would mean single individuals making about $17,000 a year and families of four with $33,000 in income would be eligible for energy payments.

The bill would also tinker with the Earned Income Tax Credit, by doubling the EITC for those with no dependents, and include an inflation adjustment. That's on page 1209.

Then there is an interesting section right after the EITC language, Sec. 433, "Protection of Social Security and Medicare Trust Funds."

From the way I read it, the administrators of Medicare and Social Security would be able to tap into general revenues of the U.S. Government, if it is determined that the Cap and Trade bill has resulted in a reduction of revenues going into those two trust funds.

Energy bill would allow drawdowns from general fund for SS & Medicare

Exact wording in the bill:

Pg 1026: “The Secretary of the Treasury shall transfer from time to time to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, from amounts in the general fund of the Treasury…on account of changes in benefit costs and changes in tax revenue attributable to the provisions of the American Clean Energy and Security Act of 2009 and the amendments made thereby, in order to place each of such Trust Funds in the same position at the end of such fiscal year as the position in which such Trust Fund would have been if such changes had not occurred.”

Pg 1027: “The Secretary of the Treasury shall transfer from time to time to the Trust Fund, from amounts in the general fund of the Treasury that are not otherwise appropriated, such sums as the Chief Actuary of the Centers for Medicare & Medicaid Services calculates as necessary (and so certifies to such Secretary) for any fiscal year, on account of changes in benefit costs and changes in tax revenue attributable to the provisions of the American Clean Energy and Security Act of 2009 and the amendments made thereby, in order to place the Trust Fund in the same position at the end of such fiscal year as the position in which it would have been if such changes had not occurred.”

See this interpretation.

This appears to be an acknowledgement that this bill will result in a net loss of jobs (thus indirectly reducing the funding for SS via payroll taxes), contrary to what the President is saying.