Will Senate Republicans Sunset Social Security and Medicare if they win?
Senate Minority Leader Mitch McConnell flatly said that, if the Republicans win control of the Senate, sunsetting Social Security and Medicare “would not be a part of our agenda.”
Why did only one Republican vote against Medicare?
Though Republicans supported it, no Democrat in Congress would agree and the balance was such the Republicans had to convince at least one Senator to switch sides. When Medicare was first being considered Senate Republican Robert Dole (then in the House) voted against it.
Why did Democrats and Republicans vote against social security?
Economic historian Max Skidmore shows that the final vote for Social Security was lopsided--only 2% of Democrats voted against it (because it wasn't generous enough) while 33% of Republicans voted against Social Security. Historian Arthur Schlesinger ( page 311) notes that the Republicans echoed corporate opposition to Social Security.
Did the Republican Party steal money from social security to fund wars?
Another misconception is that the Republican Party stole money from the Social Security Trust and used it to fund wars. More specifically, Ronald Reagan, George H.W. Bush, and George W. Bush have come under intense scrutiny for borrowing from Social Security and "not putting the money back."
What president took money from the Social Security fund?
President Lyndon B. Johnson1.STATEMENT BY THE PRESIDENT UPON MAKING PUBLIC THE REPORT OF THE PRESIDENT'S COUNCIL ON AGING--FEBRUARY 9, 19648.LETTER TO THE NATION'S FIRST SOCIAL SECURITY BENEFICIARY INFORMING HER OF INCREASED BENEFITS--SEPTEMBER 6, 196515 more rows
Has the government borrowed money from Social Security?
The Social Security Trust Fund has never been "put into the general fund of the government." Most likely this question comes from a confusion between the financing of the Social Security program and the way the Social Security Trust Fund is treated in federal budget accounting.
How much has Congress borrowed from Social Security?
The total amount borrowed was $17.5 billion.
Who was the first president to dip into Social Security?
President Jimmy Carter1.SOCIAL SECURITY SYSTEM--May 9, 19773.SOCIAL SECURITY FINANCING BILL -- October 27, 19774.SOCIAL SECURITY FINANCING LEGISLATION -- December 1, 19775.SOCIAL SECURITY AMENDMENTS OF 1977 --December 20, 19776.SOCIAL SECURITY FINANCING LEGISLATION --April 10, 19788 more rows
Did Congress steal from Social Security?
The Social Security Administration (SSA) says the notion is a myth and misinformation. "There has never been any change in the way the Social Security program is financed or the way that Social Security payroll taxes are used by the federal government," the agency said.
What did Ronald Reagan do to Social Security?
In 1981, Reagan ordered the Social Security Administration (SSA) to tighten up enforcement of the Disability Amendments Act of 1980, which resulted in more than a million disability beneficiaries having their benefits stopped.
Why is Social Security running out of money?
Over the next ten plus years, the Social Security administration will draw down its reserves as a decreasing number of workers will be paying for an increasing number of beneficiaries. This is due to a decline in the birth rate after the baby boom period that took place right after World War II, from 1946 to 1964.
When did Social Security become an entitlement?
The Social Security Act was signed into law by President Roosevelt on August 14, 1935. In addition to several provisions for general welfare, the new Act created a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement.
When did the government start taxing Social Security?
As part of the 1939 Amendments, the Title VIII taxing provisions were taken out of the Social Security Act and placed in the Internal Revenue Code and renamed the Federal Insurance Contributions Act (FICA). Social Security payroll taxes are thus often referred to as "FICA taxes."
Did Nixon increase Social Security?
On July 1, 1972, President Nixon signed Public Law 92-336, a bill to extend the public debt limit. The legislation also contained amendment to the Social Security Act, raising the amount of monthly cash benefits and revising several financing provisions.
Who passed Medicare?
President Lyndon B. JohnsonOn July 30, 1965, President Lyndon B. Johnson signed into law the bill that led to the Medicare and Medicaid. The original Medicare program included Part A (Hospital Insurance) and Part B (Medical Insurance).
How much does the government owe Social Security?
$2.908 trillionAs of 2021, the Trust Fund contained (or alternatively, was owed) $2.908 trillion The Trust Fund is required by law to be invested in non-marketable securities issued and guaranteed by the "full faith and credit" of the federal government.
How much money does the government owe to the Social Security Fund?
Technically the government owes the Social Security fund an estimated $2.9 trillion, money that has been used and not repaid to the fund. The money is legally held in a special type of bond that by law cannot be used for any other purpose other than to put the money back into the fund.
Why is Social Security like a lottery?
Actually, the Social Security program has become much like a state lottery or casino because it depends on people playing, not to fund the intended program (education, assistance for the elderly) but to fill holes in the larger budget where overspending has occurred.
When will Social Security outflow exceed inflow?
There is an ongoing debate about whether the Federal government and its spending policies are responsible for the current projections that by the year 2034 the outflow of payments will exceed the inflow of tax revenues to fund the social security program.
Do millennials pay taxes?
Millennials and younger generations complain they are paying their taxes in just to finance the 63 million retirees, about half who depend on their Social Security check to pay part or all of their monthly bills. But when looking at that $2.9 trillion owed to the fund, and the fact that the fund actually has more money going in than coming out, the problem clearly lies with the government’s addiction to spending. Money is the drug of choice in Washington D.C., and whoever gets elected will get their fix sooner or later.
Is there cash in the bank to pay out Social Security benefits?
There is no cash in the bank to pay out monthly benefit checks. The Congress, those keepers of the financial retirement flame, have been using Social Security taxes to fund other parts of the government because, well the money is there.
Is the $2.9 trillion problem the government's fault?
An odd thing is taking place in some financial and economic circles, where people are arguing that the problem of the $2.9 trillion is somehow not the government’s fault and is really not that big of a deal. The clock is running and no one seems to have a solution, yet all admit the government does owe the Social Security fund the money and that the government continues to borrow from the fund every year. Maybe many of these so-called experts won’t be around in 2034 and can act as if the problem is not really a problem. The real problem is that neither the average person or the accountants and financial planners in the government actually understand what $1 trillion is in real money. Maybe someone could make $1 trillion in dollar bill sized pieces of paper and have them delivered to the Congress. But that would cost too much.
Who voted against Medicare?
When Medicare was first being considered Senate Republican Robert Dole (then in the House) voted against it. Also in opposition to Medicare, in a famous 1964 speech, Ronald Reagan explained that his opposition to Social Security and Medicare is why he switched from the Democratic Party to the Republican Party.
Which party is opposed to Social Security?
The Republican Party has always been associated with opposition to Social Security. Economic historian Max Skidmore shows that the final vote for Social Security was lopsided--only 2% of Democrats voted against it (because it wasn't generous enough) while 33% of Republicans voted against Social Security.
Why did McConnell say the Republicans would defend the tax cuts?
This poll was taken a week after Senator McConnell said the Republicans would defend the tax cuts and cut Social Security, Medicare and Medicaid in order to curb the growing deficit, caused in significant part by those very tax cuts. The Republican Party has always been associated with opposition to Social Security.
What percentage of Americans would prefer to reverse the Republican tax cuts?
A poll one week before the election about Republican social and economic policy is a red flag for Republicans. 60% of Americans would prefer to reverse the Republican 2017 tax cuts than cut spending on Social Security, Medicare and Medicaid.
What is the most popular program in America?
Social Security is the most popular program in America, especially among the voters who are growing the fastest. Social Security is the most popular program in America, especially among the voters who are growing the fastest. Share to Facebook. Share to Twitter. Share to Linkedin.
Who is calling for cuts to Social Security?
Not only is President Trump arguing with leading Republican Paul Ryan, about the Constitution, but the highest-ranking Republican in the Senate – Senator Mitch McConnell -- has called for cuts to Social Security. That is strange politics because Social Security is the most popular program in America, especially among the voters who are growing the fastest and who vote the most – people over 65.
Is Social Security a fiscal discipline?
Social Security is one of the few government programs with built-in fiscal discipline. Bottom Line: Though Senator McConnell may not have meant to publicize the Republican agenda to cut Social Security, Medicare and Medicaid, the long history of Republican opposition may be an example of what Sigmund Freud and modern psychologists believe--a slip ...
How many people will receive Social Security in 2035?
According to the latest Social Security Board of Trustees report, the program that currently pays benefits to more than 63 million people a month , and to which 62% of retired workers lean on for at least half of their monthly payout, is set to completely exhaust its nearly $2.9 trillion in asset reserves by 2035.
How to solve funding issues in Washington?
Generally speaking, there are two ways to tackle a funding issue in Washington: Raise additional revenue or cut costs. The Democrat approach favors the idea of raising additional revenue through taxation. This would specifically be done by increasing or eliminating the payroll tax cap.
What is the flaw in the Republican proposal?
On the other hand, the Democrat proposal of raising revenue through taxation addresses the main flaw of the Republican proposal. Mainly, that it takes decades to actually work. The GOP proposal wouldn't begin recognizing long-term savings until workers begin retiring many decades down the road. The Democrat's solution would immediately begin injecting added revenue into the Social Security program, which provides a possible solution to the aforementioned 2035 "judgment day."
Is the Social Security payout schedule sustainable?
The bad news is that the current payout schedule isn't sustainable. The Trustees have estimated a shortfall of $13.9 trillion between 2035 and 2093, assuming the current payout schedule were to continue. If and when the program's asset reserves are depleted, benefit cuts of up to 23% may be passed along to retired workers. That's a problem, considering how many seniors are currently reliant on Social Security to make ends meet.
Is Social Security going bankrupt?
Now, there is good news -- namely, that the Social Security program isn't going bankrupt, even if it somehow burns through every last cent of its asset reserves. The program has two recurring sources of revenue -- the 12.4% payroll tax on earned income of up to $132,900 (as of 2019) and the taxation of Social Security benefits -- which ensure ...
Will Social Security continue to pay out over time?
Even with added taxation on the wealthy, it's unclear if Social Security could support the current payout schedule over a long period of time if people continue to live longer and pull benefits for decades at a time.
Is income over $132,900 exempt from payroll tax?
Meanwhile, any earned income over $132,900 is exempt from the payroll tax. Image source: Getty Images. Back in 1983, a little over $300 billion in earned income escaped the payroll tax by being above the tax cap. However, by 2016, $1.2 trillion in earnings were exempted from the payroll tax.
How many people are receiving Social Security above the poverty line?
Both Democrat and Republican lawmakers on Capitol Hill have an understanding of the importance that Social Security plays in keeping some 22 million people currently receiving benefits above the federal poverty line.
How long has Social Security been borrowed?
However, the truth of the matter is that Congress has been able to "borrow" Social Security's excess cash (i.e., asset reserves) for five decades, and it's happened under every single president over that stretch.
Will Republicans take away Social Security?
Image source: Getty Images. 1. Republicans aren't going to take away Social Security. Without beating around the bush, the Republican Party is often associated as being the party of the well-to-do -- and the rich typically aren't reliant in any way on Social Security income.
Does means testing reduce Social Security?
Some Republicans, including Donald Trump, have called for a form of means-testing, which would reduce or eliminate Social Security benefit payments for those folks or couples who are wealthy.
Is Social Security better off without interest?
In fact, without interest income, it would be considerably worse off.
Did the Republican Party steal Social Security money?
Another misconception is that the Republican Party stole money from the Social Security Trust and used it to fund wars. More specifically, Ronald Reagan, George H.W. Bush, and George W. Bush have come under intense scrutiny for borrowing from Social Security and "not putting the money back."
Is Social Security inflection point?
According to the report, Social Security is facing an inflection point this year. For the first time since 1982, aggregate expenditures, which almost entirely includes benefits, but also takes into account administrative expenses and Railroad Retirement exchange contributions, will exceed revenue generated.
Where does Social Security money come from?
The money for Social Security should come from a trust account with a citizen’s name on it, and not allowed to be used for general federal spending.
Why is the Republican Party called the party for the rich?
Calling the Republican Party “the party for the rich” is sour grapes because both parties will have their fair share of rich people, and a vast majority of not wealthy people. Frankly because a vast majority in the United States are, as we call them, not wealthy.
What happens to SSI after death?
If an account grows to a level, say $200k, where it can not only pay the maximum individual SSI payout, but is clearly also funding that of lower earners, then upon death, the portion of the account above the stated level is returned to the estate of the deceased.
What happens when SS taxes come in?
When SS taxes come in, the amount is added together. SS outlays are subtracted from it. Anything left over is used to by Treasury Securities that can be redeemed at anytime for face value. There are a few different types that have been used over the years, but we can call them SS Bonds so as not to get bogged down.
What program was every penny taken from?
Every penny ever taken from Social Security was spent on one program - Social Security. Here is the longer article with data from the SSA.
What is SS bond?
The dollars used to buy the bond are counted as treasury inlays, and they reduce the federal deficit for the year (or increase the surplus; which is right and proper from the accounting standpoint: SS Bonds are an asset to you and I, so they are a liability to the government, and any money coming into the government is an inlay, and is deducted from their spending).
Is Social Security a split tax?
Currently, Social Security is a split tax, with employers paying half. In truth, that is the employee’s money, and the full amount should be credited to the employee’s Social Security account.
How much will the SSA run in 2026?
By 2026, the SSA will run up a cumulative deficit of $1.6 trillion.
Which hand of the government took money from the right hand of the government and promised to pay it back on “some future?
Translation: The left hand of the government took money from the right hand of the government and promised to pay it back on “some future date.”
How much is the Social Security deficit in 2026?
In plain English, Social Security was in deficit mode. By 2026, the SSA will run up a cumulative deficit of $1.6 trillion. Wait… what about all the money you, I, and ...
Will smoke and mirrors prevent the financial system from collapsing under its own weight?
No amount of financial smoke and mirrors will prevent the system from collapsing under its own weight.
Is Social Security going to collapse?
Social Security is now collapsing under its own weight, and there’s nothing anyone can do to stop it. Soon, the government will have no choice but to cut Social Security benefits. If you’re depending on Social Security, you need to come up with a Plan B today.
Is there a dollar in the Social Security Trust Fund?
There isn’t one dollar in the Social Security trust fund. Nada. Zip. Zilch. Remember, that $2.8 trillion sum is book assets, not actual dollars. The dollars were spent the minute the government collected taxes. That’s because the government isn’t required to use money collected from Social Security toward Social Security purposes ...
What did Reagan do to extend Social Security?
Reagan subsequently appointed the Greenspan Commission to develop proposals to extend Social Security's fiscal solvency. His signing in 1983 of a set of amendments to the Social Security Act based on the commission's recommendations disappointed influential critics of the program, who complained that modest improvements were not enough: Social Security needed to be fundamentally restructured and its growth curtailed.
When did the Social Security debate start?
The Social Security debate is the longest-running domestic political tug-of-war in Washington. It began in 1981 when President Reagan floated a proposal to drastically cut old-age and survivors' benefits that met with immediate rejection from leaders of both parties in Congress.
Why do Social Security workers want wages to rise?
Social Security's defenders would like to see wages start rising again, because this is the best way to assure the program's fiscal health going forward. Privatizers adamantly oppose new or higher taxes and would like to see income from private investments replace wages as the main source of wealth for nearly all workers, creating what Karl Rove described as the “ownership society.” The deficit hawks tend not to be wedded to the idea of carving private accounts directly out of payroll taxes. But they generally agree with the privatizers that the direction that wages have been trending for most of the past 30 years is not going to change – and probably should not be encouraged to do so.
How to make payroll tax hikes more palatable?
One way to make payroll tax hikes more palatable would be to reform tax expenditures. Deficit hawks often caricature Social Security and Medicare as “entitlements,” because they are automatic payments, determined by a formula, not by Congress each year. But tax expenditures such as for home mortgages and property taxes, employer-provided and self-employed health insurance, and tax incentives for pensions and retirement saving, can also be regarded as entitlements. Each is determined by a formula written into the tax code and lawmakers do not review them from year to year. They total $5 trillion over the next five years, according to the Congressional Budget Office. The Social Security shortfall, by contrast, is projected to total $5.4 trillion over the next 75 years.[8]
How much will Social Security affect the economy?
The critical question in assessing Social Security's long-term impact is how much pressure it places on the economy as a whole. The answer is: not very much . According to the trustees' 2010 report, the Social Security deficit over the next 75 years – in other words, the benefit promises that payroll taxes and interest on the trust fund assets don't cover all by themselves – will come to just 0.7% of GDP.
Why is cutting Social Security bad?
In the short run, cutting Social Security – and Medicare and Medicaid – takes money out of the consumer economy at a time when consumption and economic growth are dependent on government income support. In the long run, it reduces retirees' income, making them more dependent on the “sandwich generation” of middle-aged workers struggling to raise children, support their elder relatives, and save for their own retirements.
What was the replacement rate for the 1983 amendments?
This has reduced benefits for many seniors. During the Clinton administration, a series of adjustments to the components of the Consumer Price Index used to calculate benefits began to push down the replacement rate for final average income. As a result of both these changes, the median replacement rate is projected to slip from 39% to 31% for workers born between 1956 and 1965 even if nothing is done to further downgrade the system.[5]