In case you missed it– Iowa Senator Joni Ernst unveiled a new “paid family leave” plan this week that 1) isn’t paid, and 2) could destroy Social Security as we know it.
The proposal has been roundly criticized by a group that includes one of Ernst’s Republican colleagues, and applauded by Koch allies and public policy wonk Ivanka Trump. For more on Ernst’s insidious CRADLE Act, read on:
LA Times: The Republican proposal for paid family leave is a sham that would wreck your retirement
By Michael Hiltzik | March 13, 2019
- “Republican Sens. Joni Ernst of Iowa and Mike Lee of Utah have been beating the drums for their ‘Cradle Act,’ a proposal to institute up to 12 weeks of paid leave for new parents.”
- “But they’ve concealed the chief drawbacks of their plan, which are the same features that make it palatable to a GOP constituency: It would undermine Social Security, force seniors to work longer, and carry hidden costs that wouldn’t be evident until it’s too late.”
- “The Urban Institute, which took a close look at the GOP proposal last year, found that it would raise Social Security’s annual costs, accelerate its fiscal problems, and open the door to other raids that ‘could undermine Social Security’s ability to ensure basic retirement security for all Americans.’”
- “The Urban Institute noted that delaying Social Security translates into a real financial loss; its report reckoned that parents who took a single 12-week leave would lose about 3% of their future retirement benefits, and those who took four leaves would lose 10%.”
- “The leave proposal would undermine Social Security’s fiscal condition, especially in the near term…The hidden agenda of this proposal is to remake Social Security so it’s less useful for retirees.”
Read the full article here.
But wait, there’s more:
Ernst’s Republican colleague called her plan a “raid” of Social Security.
The plan is panned as “deeply flawed.”
Iowa financial advisors “don’t think it’s a smart investment.”
Published: Mar 14, 2019