Hi Yves. It seems puzzling to me that the CBO concluded that the Republican proposed cuts to Social Security benefits, raising the “full retirement age” from 67 to 69, would not actually improve solvency, even though it would succeed in reducing payments, especially to people who want to retire early and need reduced benefits. The name is misleading, as the later you start receiving Social Security the higher your benefits, with age 70 now being the latest start date. I haven’t had time to look into it in detail yet, so I hope to see an analysis. The lack of improvement in solvency may be due to the phased-in nature of the plan.
That being said, this plan appears to be an existing Republican plan (I had a quick look at the CBO study and it had a link to the 2022 explanation as a source). It’s also featured in some form (not sure if it’s fleshed out or just more general whitewashing) in Project 2025. While Democrats are trying to make Project 2025 Trump’s policy, it’s an extremely conservative wish list (with internal contradictions!) that hardcore Republicans will try very hard to get Trump to adopt. So we should be worried that Trump is in favor of it, but no one has provided any evidence for it.
In addition, we must remember that both Clinton and Obama seriously considered “reform” in the sense of cutting Social Security, but for different reasons never got around to it. So those who want to protect and strengthen Social Security should not assume that the Democrats are on their side. Both parties need to get the message that instead of cutting benefits, we must either eliminate the income cap or raise payroll taxes by increasing taxes on high earners.
And, despite the Social Security Administration being the most important actuarial job in the U.S., I wonder to what extent the agency’s models have been updated to reflect the expected continued decline in U.S. life expectancy (which has stalled for now), the long-term health effects of COVID-19, and the increasingly unaffordable cost of health care in the U.S. One would think that the resulting reduction in elderly people would result in some improvement in Social Security solvency, but I have not seen any reporting to that effect.
Notice that Trump is promoting his ads as increasing the incomes of Social Security recipients. I’ve seen YouTube ads with rally footage of Trump saying he’ll stop taxing tips and Social Security payments. Of course, the roughly 40% of people who pay income tax have higher incomes.
By Jessica Corbett, Common Dreams staff writer. Originally published in A common dream
Social Security advocates have long Claimed Former Republican President Donald Trump’s presidency could be a disaster for seniors, according to a nonpartisan government analysis. release On Wednesday they intensified their warning.
Rep. Brendan Boyle (D-PA), the ranking member of the House Budget Committee, has asked the Congressional Budget Office (CBO) to analyze the impact of raising the Social Security full retirement age (FRA) from 67 to 69, as proposed by several Republican groups.
“The report shows that raising the retirement age to 69 would reduce benefits by an average of $3,500 per year.” Social Security System Executive Director Alex Lawson said: A common dream“For seniors and people with disabilities, that means they can’t buy groceries, they can’t pay their heating bills, they can’t buy birthday presents for their grandchildren.”
“These brutal benefit cuts will hit hardest those who claim benefits early — people who work in standing jobs rather than office jobs,” Lawson said. “What’s worse, this is just one of many benefit cuts supported by Republicans whose sole purpose is to destroy our Social Security system.”
CBO Director Philip L. Swagel Written To Boyle:
Everyone affected by such an increase in FRA will receive fewer Social Security benefits over their lifetime. Workers who choose to delay claiming retirement benefits by a number of months equal to the increase in FRA will receive the same monthly benefits over a shorter period of time. Workers who claim retirement benefits at the same age they would claim under current law will receive smaller benefits over the same number of years.
In a statement responding to the reports, Boyle’s office said: Highlight “For workers currently in their 30s and 40s who would be subject to the full retirement age increase, the average annual benefit reduction would be 13 percent, or about $3,500 per year.”
As the congressman’s office noted, the CBO also concluded that “while raising the retirement age would reduce spending, it would not generate enough savings to change the projected depletion date of the Social Security Trust Fund, which is projected to be unable to pay full benefits by the end of fiscal year 2034.”
Senator Boyle and Senate Budget Committee Chairman Sheldon Whitehouse (D.R.I.) Introduced The Medicare and Social Security Fair Payments Act would expand the solvency of both programs by requiring higher-income Americans to pay more than they do now.
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BREAKING: The Republican Social Security Scam (see Project 2025 👀) is a Bad Deal for the American People ⏬ https://t.co/A9zYuqlwoJ
— Democratic Ways and Means Committee (@WaysMeansCmte) September 25, 2024
“Social Security is a sacred promise that Americans have earned the right to retire with dignity after a lifetime of hard work,” Boyle said Wednesday. “This independent, nonpartisan report shows how devastating the Republican plan to strip away hard-earned Social Security benefits would be for American workers.”
“Instead of protecting Social Security by making the super-rich pay their fair share, Republicans are fixated on cutting benefits for the middle class,” he warned, especially in Congress. Republican Study Committee and The Heritage FoundationDemocrats are behind Project 2025. “Democrats will keep the promise of Social Security and never stop fighting to protect Americans’ retirement security from Republican attacks.”
The CBO report was released less than six weeks before the US general election. Kamala Harris He is facing off against Trump in the race for the White House.
Donald Trump plans to cut Social Security and Medicare while handing out huge taxes to billionaires. https://t.co/lAPsSoEVMQ
— Social Security Works (@SSWorks) September 25, 2024
Before President Joe Biden dropped out of the race and handed the baton to Harris, the National Committee to Protect Social Security and Medicare, the National Unity Committee to Protect Pensions and the Social Security Political Action Committee backing I support him over Trump. all three group Have Approved Harris.
“As president, Biden has been an unwavering defender of Social Security and Medicare,” said Nancy Altman, president of Social Security Works. Written In an opinion piece in July A common dream“Harris is as fierce an advocate as ever, and she’ll do even more. She’ll expand Social Security and Medicare, require billionaires to pay their fair share, and ensure that all benefits are paid in full and on time for the foreseeable future.”
“in contrast, Donald Trump “President Trump and his Republican allies in Congress pose a serious threat to the benefits and families we earn,” she stressed, also warning of Republican positions on drug prices and tax cuts for the wealthy. “A vote for Democrat is a vote to expand benefits, lower prescription drug prices, and ask billionaires to pay their fair share.”
