Democrats and particularly President Joe Biden are lying to the American people about Republicans and Social Security. Biden has been campaigning for Democrats across the nation. In Florida, he told the people that the Republicans are threatening the future of Social Security if they take power in Congress. He portrayed the future of Social Security as being misleading and undermines the future of the program.
The truth is that the future of
Social Security is not secure. The program is running out of time and money,
and the increasing debt and spending have crowded out options to reform it.
Rachel Greszler suggested that there are seven things that Americans should
know, “so that they can make informed decisions about their own futures and
about which Social Security reforms would be best for them.”
1. Workers’ Social Security taxes aren’t
set aside for their retirement. Despite the notion that the social
security taxes that workers pay are saved to fund their future benefits, the
federal government has consistently used Social Security’s revenues to pay for
other government spending, issuing Social Security’s trust fund IOUs in return.
And starting 12 years ago, Social Security began paying out more in benefits
than it collects in taxes, which requires cashing in on those IOUs and adding
to deficits. But those IOUs will run out in about 12 years.
2. Social Security is not secure. If policymakers do
nothing, Social Security’s retirement program will be insolvent in 2034 and
benefits will be cut by 23% across the board.
3. Social Security has a $20.4 trillion
of the reason Social Security is so popular is because it has paid out more in
benefits than it takes in taxes. Social Security’s combined old-age and
survivors’ insurance and disability insurance programs are scheduled to pay
$20.4 trillion more in benefits than they will collect in taxes over the next
75 years. That’s a shortfall of about $157,000 for every household in America.
Confronting that reality is why Social Security reform is so difficult, but the
longer policymakers wait, the higher that cost will rise.
4. The cost of inaction is exponential. Between just 2010
and 2020, Social Security’s combined retirement and disability programs’
unfunded obligations surged from $8.6 trillion and $71,000 per household to
$20.4 trillion and $157,000 per household. Those costs will continue to grow
until policymakers confront Social Security’s insolvency.
5. Social Security is a bad deal for
current and future workers. Social Security may have been a good deal
for Biden’s generation, but it’s not a good deal for current and future
workers. A Heritage Foundation analysis showed that the average younger worker
could receive nearly three times as much as Social Security can provide if they
were instead able to save Social Security taxes in their own retirement
accounts…. Even low- wage workers making about $20,000 a year could have 40%
larger incomes in retirement as a result
6. Democrats’ plan for Social Security
would hasten insolvency and exacerbate shortfalls. Democrats have a
proposal – “Social Security 2100: A Sacred Trust” – that they say will expand
Social Security benefits, reduce the program’s shortfalls, and conform to Biden’s
pledge to not raise taxes on people making less than $400,000. But that claim
is disingenuous at best. Their “Sacred Trust” uses 75 years of tax increases on
high-income earners to pay for just five years of benefit increases for
everyone. If those benefit increases were made permanent – as is the intent of
its supporters – “Social Security 2100: A Sacred Trust” would hasten Social
Security’s insolvency by two years (to 2032) and increase the program’s already
massive shortfalls by an additional 21%.
7. Democrats’ plan for Social Security
would require a $3,000 tax hike for a typical household. Making the benefit
increases of “A Sacred Trust” permanent would require raising Social Security’s
payroll tax from 12.4% to 16.7% (in addition to the proposal’s tax increases on
people making over $400,000). That would equal an extra $3,000 per year and
$11,800 total in Social Security taxes for the median household.
is no secret that Social Security reform will be difficult and painful, and
Americans should know this information. Yet, Democrats seek to make it a political
matter instead of helping the difficult discussions and actions to take place.
is impossible to go back to the past to make changes. However, we can take a
serious look at the problem and fix it as soon as possible. The way to fix it
is for Congress to “refocus the program on its original purposes; namely, providing
financial security and protecting seniors from poverty.” They can do this by “reducing
Social Security’s drag on personal incomes and nest eggs” and by making “more
people – and the entire economy – better off.”