CUTS TO SOCIAL SECURITY & PAYROLL TAX DISPROPORTIONATELY HURT VULNERABLE SENIORS
Social Security is the safety net for nearly two thirds of retirees—providing them with over half of their overall income. In fact, half of all Americans haven’t even been able to put away more than $10,000 retirement—further emphasizing the need for this program.
During the campaign season those collecting Social Security, and those hoping to do so, breathe a sigh of relief as every candidate on all sides swears not to cut Social Security, promises to protect Social Security and hails the great importance of Social Security.
But what about when candidates come off the campaign trail?
There are three major ways that opponents can attack your monthly Social Security check: federal budget cuts, means-testing for benefits, and payroll tax cuts and all are being publicly voiced by opponents of Social Security. The Trump Administration has considered each one recently, so it’s important to understand what the outcomes would be if the President was to move forward with any one of the aforementioned proposals.
The White House’s 2020 budget resulted in $35 billion in cuts to Social Security and Social Security Disability Insurance (SSDI) programs and his 2021 budget proposal offered more cuts. These cuts inherently undermine retirement security.
Payroll tax cuts are often floated as a break to working class Americans, however payroll tax cuts would have menial impacts to the average worker at the onset, and disastrous impacts in their retirement. Social Security isn’t an entitlement as opponents often refer to it as, and instead is funded by worker contributions through payroll taxes. As it stands currently, Social Security is scheduled to fall by 25% after 2034 if immediate action isn’t taken, and any cut to payroll taxes would just further undermine the program.
Means-testing for benefits is another opportunity for opponents to slash Social Security benefits. Simply put, means-testing would allow the Federal government to review the annual income of beneficiaries to determine whether they would receive a reduced Social Security benefit or no benefit at all.
All three of these attacks are very real to your secured retirement. Protecting Social Security is a core function of CSEA Council 400 and it’s important that we vote for candidates that understand it’s efficacy at providing Americans with a secure retirement.
Take a look here for both President Donald Trump and Former Vice-President Joe Biden’s Social Security plan as reported by Market Watch: