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AZ-AARP Takes Social Security Message to Congress

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Wednesday, October 2, 2013   

PHOENIX - Cutting Social Security benefits would do more than just hurt recipients, according to a new report from AARP that says Arizona's economy also would suffer.

The study from the AARP Public Policy Institute calculates that every benefit dollar generates $2 in spending by Arizona individuals and businesses - which adds nearly $30 billion a year to the state's economy. AARP state director David Mitchell said that also means jobs.

"The $15.9 billion paid in benefits actually helped Arizona workers either find or keep 202,000 jobs."

Staff and volunteers from AARP Arizona are delivering the report and thousands of petition signatures to congressional offices this week, expressing concerns about proposals to reduce annual Social Security cost-of-living increases.

Mitchell said changing the method of calculating cost-of-living adjustments to what's called a "chained CPI" would cost Arizona recipients many thousands of dollars in benefits over the long term, and hurt the state's economy.

"We do need to talk about how to make sure that Social Security is solvent," he said, "but having a chained CPI is not the answer."

Although AARP takes no official position on alternatives, Mitchell said a national conversation about Social Security is necessary - considering such options as extending the Social Security tax to income above the current limit of $113,000.

"Even if they raise it to $150,000, $175,000, $200,000, or as long as you receive a paycheck, no matter how much you're making, you will still continue to pay into Social Security," he said. "That would really help."

Nationally, the report found, Social Security checks support more than 9 million jobs, with the biggest impacts in the food service, real estate, health care and retail industries. More than 820,000 Arizonans receive Social Security benefits.

The report is online at aarp.org.


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