National Committee to Preserve Social Security and Medicare Letter to Senate Members

The National Committee to Preserve Social Security and Medicare (NCPSSM) sent this letter to all Senate members on June 12, 2002, urging them to vote "No" on any proposal to make permanent any of the tax cuts enacted as part of last year's $1.35 trillion tax cut package -- and mentions permanent repeal of the estate tax specifically. The letter urges all Senate members to "reject any legislation to permanently extend such tax cuts until Social Security and Medicare have been placed on strong financial footing and seniors are provided adequate access to a Medicare prescription drug benefit." June 12, 2002 United States Senate Washington, D.C. 20510 Dear Senator: On behalf of the millions of members and supporters of the National Committee to Preserve Social Security and Medicare, I wish to express our strong opposition to any proposal to permanently extend any tax cuts enacted last year that are projected to expire in 2010. In light of the many unmet needs of current and future generations of seniors, we urge you to reject this fiscally irresponsible move. The proposed extension of the estate tax repeal, now before the Senate, would cost approximately $740 billion in the decade beginning in 2012, and represents a huge windfall solely to the top 2 percent wealthiest estates in the nation. We urge you to reject any legislation to permanently extend such tax cuts until Social Security and Medicare have been placed on strong financial footing and seniors are provided adequate access to a Medicare prescription drug benefit. We remain concerned that the tax provisions enacted last year have squandered resources needed to prepare our nation for the pending retirement of the baby-boom generation. In just over a year, we have moved from projections that the entire federal debt would be paid off by 2012, to a forecast of mounting federal debt and related interest payments. This has a direct impact on our nation’s more immediate priorities. Since early 2001, CBO projects over $1 trillion in new federal interest payments on the debt alone in the next 10 years, due largely to the enactment of last year’s tax cut. This amount would be more than adequate to provide Medicare beneficiaries the type of comprehensive coverage for prescription drugs enjoyed by Members of Congress, a benefit that seniors need and deserve. We believe any extension of last year’s tax cuts, which predominantly benefit higher wage earners and corporations, would be an irresponsible move in light our current fiscal situation and the nation’s other pressing needs. We urge you to reject this effort and turn the national agenda to the American people’s true priority that is to ensure the continued successes of Social Security and Medicare. Cordially, Barbara Kennelly President and CEO
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