While much of public attention has been diverted by Trump’s latest Twitter feud with a Carrier union leader, House Republicans have just announced plans to substantially cut Social Security.
“Apparently nothing upsets House Republicans like the idea of hard-working people getting to enjoy a secure and dignified retirement,” Democratic Leader Nancy Pelosi said in a statement. “While Speaker Ryan sharpens his knives for Medicare, Chairman Johnson’s bill is an alarming sign that Republicans are greedily eying devastating cuts to Americans’ Social Security benefits as well.”
Social Security’s funding is projected to fall short by 2034. Democrats mostly endorse fixing this by eliminating the ‘cap’ on Social Security taxes, which excuses those who earn higher than $118,500 per year from paying into Social Security.
The new GOP plan proposes massive cuts, with payments being reduced for more wealthy people. The retirement age would also be raised from 67 to 69 for Americans currently aged 49 or younger. Benefits will grow more slowly, potentially slower than the pace of inflation. Low earners may see some increases in benefits.
“If you’ve been working for any number of years, but especially if you’ve been working for two or three decades, you’ve been paying in not only money for current beneficiaries but additional money which was invested in US government bonds to make it possible for Social Security to pay benefits of Baby Boomers and Gen-Xers. The additional money was required since there will be more seniors relative to the working age population.
“This plan appears to foresee the government never paying that back to Social Security. In other words, your payroll taxes have been socking away additional money to cover the growing senior population. But this bill says too bad. That money goes for high income tax cuts.”
During the Republican primary, Trump promised “We’re not going to hurt the people who have been paying into Social Security their whole life and then all of a sudden they’re supposed to get less. We’re bringing jobs back.”