DeMint slams AARP for stance on payroll tax cut

By Sam Baker - 10/23/12 05:34 PM ET

Sen. Jim DeMint (R-S.C.) accused AARP of hypocrisy on Tuesday because the group opposes a renewed payroll tax cut but supported President Obama's healthcare reform law.

AARP urged Congress last week not to extend the payroll tax cut, saying an extension would threaten Medicare and Social Security. Both programs are funded in part through payroll taxes, so lower payroll taxes mean less revenue for popular entitlements.

DeMint, a conservative standard-bearer in the Senate, attacked AARP for that position Tuesday, saying it's at odds with AARP's support for the administration's healthcare law, which conservatives derisively refer to as "ObamaCare."

"AARP’s position ostensibly protecting Social Security’s 'dedicated funding stream' stands in direct opposition to its endorsement of Obamacare — which diverted funding streams away from Medicare," DeMint wrote. "As you know, Obamacare diverted funds from the payroll taxes used to finance Medicare for the first time ever."

Medicare's independent actuaries have said the healthcare law extended Medicare's solvency by eight years. But conservatives dispute that conclusion, saying it's the result of "double counting" — making cuts in Medicare payments to doctors and using the savings to pay for a separate program.

DeMint said AARP appeared to be protecting Social Security's funding at the expense of Medicare's.

"One simply cannot reconcile these two positions — opposing diversion of Social Security taxes, yet supporting diversion of Medicare taxes — as ideologically consistent," he wrote. "I am therefore concerned that AARP’s positions on these matters are being determined by partisan or economic considerations."

Congressional Republicans have waged a sustained attack on AARP since the seniors' lobby endorsed the Affordable Care Act.

AARP defended its positions Wednesday, saying Obama's healthcare law provides important new benefits for seniors, including discounts on prescription drugs and lower-cost preventive services.

“In addition, the health care law focuses on smart, targeted ways to save you and Medicare money, for example, by creating incentives that will encourage hospitals, doctors and other providers to provide quality care at a lower cost," AARP senior vice president for government affairs Joyce Rogers said. "These common-sense, targeted savings have been endorsed by leading organizations representing doctors, hospitals, nurses and others. And no Medicare payroll taxes are spent on anything but Medicare.

Rogers reiterated AARP's opposition to another payroll tax cut.

“We are opposed to further extending the Social Security payroll tax holiday because we believe such an action would put at risk the program’s dedicated funding stream and the hard-earned benefits of millions of Americans and their families," she said.

— This post was updated Oct. 24 at 6:19 p.m..