08/13/2023
We Need Politicians to fix the future funding of Social Security…
Social Security Fund In Danger
Social Security is facing future challenges due to various factors such as inflation, economic conditions, and lower-than-expected tax revenue.
A recent projection by the nonpartisan Committee for a Responsible Federal Budget (CRFB) estimates that the Social Security retirement fund will be insolvent in 2033, resulting in a 23 percent benefit cut. This means that, in 2033, annual benefits for the average newly retired dual-income couple would be cut by $17,400.
The future of Social Security has become a key political talking point as the 2024 presidential campaign ramps up.
Former President Donald Trump has warned his fellow Republicans not to cut Social Security benefits, while President Joe Biden has vowed to push back against any GOP-led efforts to slash Social Security payments.
CRFB says that any 2024 presidential candidate who “pledges not to touch Social Security is implicitly endorsing a 23 percent across-the-board benefit cut for the 70 million retirees” when the fund runs out of money within 10 years.
Accordingly, there have been bipartisan calls to come up with a fix. Mr. Grassley urged Congress to follow the example of President Ronald Reagan and House Speaker Tip O’Neill (D-Mass.) in the 1980s.
“When you have candidates for president on the Republican side and you have a Democratic president in office today who say, ‘We’re not going to touch Social Security,’ how are you going to get things done?” Mr. Grassley asked.
“The only way to reach a deal on Social Security is to follow the Reagan–O’Neill model. That means Congress and the president working in a bipartisan fashion and keeping a chain, a range of options on the table,” Mr. Grassley said, referring to the 1983 agreement that stabilized Social Security for decades.
The Reagan-O’Neill model was basically a combination of increasing payroll taxes and gradually raising the retirement age.
Lawrence Wilson from Epoch times contributed to this report.