Social Security! What are your thoughts??

[phkrause]

Here's an article from the paper today on SS:

Social Security set for a big raise

Inflation likely to bring largest hike in decades

Stan Choe

ASSOCIATED PRESS

NEW YORK – Tens of millions of older Americans are about to get what may be the biggest raise of their lifetimes.

On Thursday, the U.S. government is set to announce how big a percentage increase Social Security beneficiaries will see in monthly payments this upcoming year. It's virtually certain to be the largest in four decades. It's all part of an annual ritual where Washington adjusts Social Security benefits to keep up with inflation, or at least with one narrow measure of it.

Plenty of controversy accompanies the move, known as a cost-of-living adjustment or COLA. Critics say the data the government uses to set the increase doesn't reflect what older Americans are actually spending, and thus the inflation they're actually feeling. The increase is also one-size-fits-all, which means beneficiaries get the same raise regardless of where they live or how big a nest egg they may have.

Here's a look at what's happening:

What's the big deal?

The U.S. government is about to announce an increase to how much the more than 65 million Social Security beneficiaries will get every month. Some estimates say the boost may be

See SOCIAL SECURITY, Page 6A

Continued from Page 1A

Will this be the biggest increase ever?

as big as 9%.

No, but it's likely the heftiest in 40 years, which is longer than the vast majority of Social Security beneficiaries have been getting payments. In 1981, the increase was 11.2%.

When will the bigger payments begin?

January. They're also permanent, and they compound. That means the following year's percentage increase, whatever it ends up being, will be on top of the new, larger payment beneficiaries get after this most recent raise.

How big was this past year's increase?

5.9%, which itself was the biggest in nearly four decades.

What's the typical increase?

Since 2000, it's averaged 2.3% as inflation remained remarkably tame through all kinds of economic swings. During some of the toughest years in that stretch, the bigger worry for the economy was actually that inflation was running too low.

Since the 2008 financial crisis, the U.S. government has announced zero increases to Social Security benefits three times because inflation was so weak.

So the increase is to make up for inflation?

That's the intent. As Americans have become painfully aware over the past year, each $1 doesn't go as far at the grocery store as it used to.

Has Social Security always given such increases?

No. The first American to get a monthly retirement check from Social Security, Ida May Fuller from Ludlow, Vermont, got the same $22.54 monthly benefit for 10 years.

Automatic annual cost-of-living adjustments didn't begin for Social Security until 1975, after a law passed in 1972 requiring them.

How is the size of the increase set?

It's tied to a measure of inflation called the CPI-W index, which tracks what kinds of prices are being paid by urban wage earners and clerical workers.

More specifically, the increase is based on how much the CPI-W increases from the summer of one year to the next.

Is that the inflation measure everyone follows?

No. People generally pay more attention to a much broader measure of inflation, the CPI-U index, which covers all urban consumers. That covers 93% of the total U.S. population.

The CPI-W, meanwhile, covers only about 29% of the U.S. population. It has been around longer than the CPI-U, which the government began compiling only after the legislation that required Social Security's annual increases be linked to inflation.

How is the size set for Social Security benefits?

Through a complicated formula that takes into account several factors, including how much a worker made in their 35 highest-earning years. Generally, those who made more money and those who wait longer to start getting Social Security get larger benefits, up to a point.

Is the increase bad news for anyone?

It's great news for every beneficiary and for the businesses around them that could see more in sales.

But it also means the Social Security system is paying out more, which can add more strain on its trust fund.

One year of big increases driven by inflation won't drain the system by itself, but it's already long been heading toward an unsustainable future. The latest annual trustees report for Social Security said its trust funds that pay out retirement and survivors and disability benefits will be able to pay scheduled benefits on a timely basis until 2035.

Will this make inflation worse?

It will put more cash in the hands of people who mostly really need it, and they're very likely to use it. That will feed more fuel into the economy, which could keep upward pressure on inflation.

Social Security's boost, though, will have a smaller impact on the economy than past stimulus packages provided by Washington, snarls in supply chains caused by worldwide shutdowns of businesses or other factors that economists say are behind the worst inflation in decades.

The bigger payments will begin in January. They're also permanent, and they compound. That means the following year's percentage increase, whatever it ends up being, will be on top of the new, larger payment beneficiaries get after this most recent raise.

[phkrause]

Social Security’s funds have a new, later-projected depletion date of 2035. How Congress may shore up the program

The clock is ticking for Congress when it comes to shoring up the Social Security trust funds, according to an annual report released on Thursday by the program’s trustees.

https://www.cnbc.com/2022/06/02/changes-may-come-with-social-securitys-later-depletion-date-of-2035.html

[phkrause]

How Social Security works and what to know about its future

NEW YORK (AP) — Tens of millions of older Americans will see a major increase in benefits this January when a new cost-of-living adjustment (or COLA) is added to Social Security payments.

https://apnews.com/article/how-does-social-security-work-91e2d237d93e2ac7d2775e8b19d2a7a1?

[phkrause]

So I see no one really cares about SS!!!!!

Well here's a comment by :

House Republican Leader Kevin McCarthy:

If Republicans win back the House, they will make McCarthy Speaker of the House―meaning that this isn’t loose talk; this is the actionable Republican policy agenda. They want to hold the global economy hostage in order to force President Biden to accept cuts to Social Security―which voters have rejected time and again.

Over and over again, Republicans are telling us their #1 priority if they gain control of Congress: Cut, privatize, and ultimately destroy the American people’s earned Social Security and Medicare benefits.

McCarthy and his caucus are so hostile to Social Security and Medicare that even right before the election, they can’t stop talking about their plans to force benefit cuts—with the global economy as the hostage.

The future of Social Security and Medicare is on the ballot this November. Republicans, led by Kevin McCarthy, are united in a plot to reach into our pockets and steal our money.

 

A very interesting comment, any comments or thoughts about this??

[phkrause]

Comment by Rubio:

When Rubio was asked about fellow Florida Senator, Rick Scott’s, plan to put Social Security and Medicare on the chopping block every five years, he responded “I think it’s good.”

[phkrause]

Statement from Kevin McCarthy:

Republican leader Kevin McCarthy came out and admitted that he and his party were ready to use the debt ceiling to destroy the American economy if Joe Biden wouldn’t agree to cut Social Security and Medicare.

Wow, is this OK with people??

[phkrause]

GOP to use debt limit to force spending cuts, McCarthy says

House Minority Leader Kevin McCarthy (R-Calif.) said that if Republicans win control of the House the GOP will use raising the debt limit as leverage to force spending cuts — which could include cuts to Medicare and Social Security — and limit additional funding to Ukraine.

https://www.washingtonpost.com/politics/2022/10/18/mccarthy-gop-medicare-social-security/?

[bonnie]

For those that rely on fact checking

FACT CHECK Newsweek 

Fact Check: Do Republicans Plan to Cap Social Security Age at Age 90?

BY DARRAGH ROCHE ON 10/22/22 AT 9:49 AM EDT

 

FACT CHECKFACT CHECKSOCIAL SECURITYMIDTERMSREPUBLICANS

The midterm elections are just weeks away and as Americans prepare to go to the polls, a variety of issues are likely to inform their votes, including the future of Medicare and Social Security.

Those programs, which are of particular importance to older voters and those heading toward retirement, have been the subject of years of debate and it's not surprising that they've resurfaced ahead of this year's election cycle.

Republicans are aiming to take back the House of Representatives, with poll tracker FiveThirtyEight finding the GOP is favored to win the chamber. The party has also launched its "Commitment to America" plan—a manifesto that lays out House Republicans' goals and briefly mentions Social Security and Medicare.

Some social media users have been making a potentially alarming claim about the GOP's plans for Social Security and Medicare, however that claim is not supported by the evidence. Above, House Minority Leader Kevin McCarthy, a California Republican, speaks during his weekly news conference at the U.S. Capitol on February 27, 2020, in Washington, D.C. The midterm elections are just weeks away and as Americans prepare to go to the polls, a variety of issues are likely to inform their votes, including the future of Medicare and Social Security.MARK WILSON/GETTY

The Claim

 

Some social media users have said that House Republicans plan to raise the eligibility for Social Security and Medicare to 75 years of age and end eligibility at 90 years of age.

The claim appears to be based on an image that purports to be from the "Commitment to America" plan, and has been shared by users on TikTok, Twitter and Instagram.

 

Twitter user Sue O shared the image on October 20 and wrote: "So when the GOP gets power, if you have a 401K you'll be ineligible for Social Security Benefits, can't get them until you're 75 and they'll end when you're 90. This is unacceptable."

The Facts

An image has been circulating on social media sites under the heading "Commitment to America" that uses the same design and logo as House Republicans' official plan.

The image, which has been share to Instagram and Twitter as well as other sites, purports to be the official policy of the House GOP and says: "Make Social Security solvent by eliminating double-dipping. Retirees who have a pension, IRAs, 401k, disabled veteran benefits will be ineligible for Social Security benefits."READ MORE

 

"Raise the age for Medicare eligibility to 75 and eligibility ends for anyone over the age of 90," the text says.

However, that text is not from House Republicans' "Commitment to America" plan. Fact checking site PolitiFact concluded on October 21 that the image is fabricated, and has given the claim a rating of "Pants on Fire"—meaning it is false.

The "Commitment to America" plan, which can be downloaded from the website of House Minority Leader Kevin McCarthy, only briefly mentions Social Security and Medicare.

"Save and strengthen Social Security and Medicare," the real document says.

Those aged 65 or older are currently eligible for Medicare, according to the Department of Health and Human Services (DHSS). There is no upper age limit for Medicare.

Americans are eligible for full Social Security retirement benefits at 67 if they were born in 1960 or after.

"The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960, until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67," according to the Social Security Administration (SSA).

 

In June, the Republican Study Committee released a budget plan that included a number of suggested reforms for Medicare and Social Security, including raising the eligibility ages for each program to 67 and 70, respectively.

That proposal also called for withholding payments for individuals who retire early or had a certain level of income. It also suggested using private funding sources for Social Security to lower income taxes.

The plan garnered criticism from Speaker of the House Nancy Pelosi, a Democrat, who accused Republicans of wanting to privatize Social Security and end Medicare "as we know it."

However, the Republican Study Committee's proposals are significantly different from the proposals in the fabricated image of House Republicans' "Commitment to America" plan.

 

Newsweek has reached out to McCarthy's office for comment.e uing

 

False.

Republicans do not currently have a plan to raise the Medicare eligibility age to 75 or to cap it at 90.

No such proposal is contained in House Republicans' "Commitment to America" manifesto. The Republican Study Committee has suggested potentially raising the age for eligibility for Medicare and Social Security to 67 and 70, respectively.

 

FACT CHECK BY NEWSWEEK

 

 

 

[bonnie]

Politifact

A House Republican plan says that if the GOP wins the majority, “Retirees who have a pension, IRAs, 401k, disabled veteran benefits will be ineligible for Social Security benefits.”

 

 

Debunking a fake claim about cuts to Social Security if Republicans win the House

A phony outline of a House Republican policy plan is making the rounds on social media in the midterm election season’s closing weeks.

At the top, the image includes the logo of the House Republicans’ Commitment to America, a policy manifesto for the 2022 midterm elections.

The text is as follows:

"Entitlements are bankrupting our country and the future of our children. Republicans are the only Party with a plan to address our fiscal crisis and commit to the following if you give us the majority in November.

"Make Social Security solvent by eliminating double-dipping. Retirees who have a pension, IRAs, 401k, disabled veteran benefits will be ineligible for Social Security benefits. 

"Raise the age for Medicare eligibility to 75 and eligibility ends for anyone over the age of 90.

"Tax Disabled Veterans benefits.

"Tax employer sponsored health care plans.

"These simple steps will put our country back on the path of prosperity and ensure a bright future for our children and grandchildren."

(Screengrab from Instagram)

FEATURED FACT-CHECK

 

 

[bonnie]

Biden Gets A Whopping Four Pinocchio’s For False Social Security …

https://gop-waysandmeans.house.gov/biden-gets-a...

Sep 08, 2020 · September 8, 2020 — Blog. Even the Washington Post is calling out former Vice President Joe Biden for false assertions, giving him a whopping Four Pinocchio’s for …

[phkrause]

A record share of earnings was not subject to Social Security taxes in 2021

Inequality’s undermining of Social Security has accelerated

https://www.epi.org/blog/a-record-share-of-earnings-was-not-subject-to-social-security-taxes-in-2021-inequalitys-undermining-of-social-security-has-accelerated/?

[phkrause]

Rick Scott uses ‘alcoholism’ as metaphor for current Social Security, Medicare spending levels

U.S. Sen. Rick Scott is continuing to make his case for reform of Social Security and Medicare, likening current spending practices to managing addiction.

https://floridapolitics.com/archives/582004-alcoholism-scott/

Says Rick Scott "oversaw the largest Medicare fraud in the nation’s history."

First, Gov. Rick Scott scared the bejesus out of seniors with an online ad claiming that Medicare rate cuts would lead them to lose access to their doctors, hospitals and preventive care.

https://www.politifact.com/factchecks/2014/mar/03/florida-democratic-party/rick-scott-rick-scott-oversaw-largest-medicare-fra/

[phkrause]

Each year, in February, millionaires stop paying into Social Security. Why? Because once you earn $160,200 in 2023, you stop contributing to the Social Security trust fund. And someone making $1 million a year gets their first $160,200 in just 58 days. For a billionaire―they made that much shortly after the first hour of the year!

Republicans (and some conservative Democrats) claim that the only way to save Social Security is to make cuts―either by increasing the retirement age to 70 or reducing Social Security’s already modest benefits. The average benefit was just $1,628 a month last year, or under $20,000 a year.[1]

House Republicans are even threatening to hold the debt ceiling hostage in order to extract cuts from Social Security and Medicare.[2] But they’re not doing this in order to save Social Security. On the contrary, they’re interested in slashing its funding to reduce the federal debt, which Social Security has not caused because it is separately funded by your payroll taxes.

That’s why we’re fighting alongside our champions in Congress to make Social Security be able to pay full benefits for the next 75 years and even expand benefits for those most in need―and fully pay for it by lifting the payroll tax cap to make millionaires and billionaires pay their fair share. Just look at this tweet from Senator Bernie Sanders:

 

Bernie Sanders’s bill would expand Social Security benefits by $2,400 a year while extending the lifespan of the trust fund by another 75 years and improving cost of living adjustments to better reflect the needs of older recipients. It does this by raising the payroll tax cap on anyone earning above $250,000 a year.[3]

John Larson’s bill would also increase monthly Social Security benefits and extend the lifespan of the trust fund by lifting the payroll tax cap on anyone earning above $400,000 a year.[4]

We will not stand by while Republicans and some conservative Democrats “negotiate” over how to cut Social Security―because we know we can expand benefits when the wealthy finally start paying their fair share.

Thank you,

Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund

[1] Social Security average retirement monthly benefit, USA FACTS
[2] “House GOP eyes Social Security, Medicare amid spending battle,” The Washington Post, Jan. 24, 2023
[3] “NEWS: Sanders, Warren, and Colleagues Introduce Legislation to Expand Social Security by $2,400 a Year and Extend Solvency for 75 Years,” June 9, 2022 U.S. Senator Bernie Sanders
[4] The Social Security 2100 Act, U.S. Rep. John Larson

1-Social Security average retirement monthly benefit

https://usafacts.org/data/topics/people-society/social-security-and-medicare/social-security/social-security-average-monthly-benefit/

2-WASHINGTON POST: “House GOP eyes Social Security, Medicare amid spending battle”

https://www.thehousemajoritypac.com/news/washington-post-house-gop-eyes-social-security-medicare-amid-spending-battle

3-Sanders, Warren propose bill to extend Social Security’s solvency for 75 years, increase benefits by $2,400 per year

https://www.cnbc.com/2022/06/09/sanders-warren-bill-would-extend-social-securitys-solvency-expand-benefits.html

4-Larson Introduces Landmark Social Security Bill

https://larson.house.gov/media-center/press-releases/larson-introduces-landmark-social-security-bill

[phkrause]

Email I received from SSW the other day: Did you see what Senator Rick Scott said about Social Security? Rick Scott’s history before he was a politician demonstrated that he sees our earned benefits as an opportunity to rob us blind―his company received what, at the time, was the largest-ever fine for committing Medicare fraud. Politicians like Rick Scott will never do what’s best for Social Security―and comments like this prove it. Social Security Works will protect our earned benefits from Republican hostage-takers like Rick Scott! Thanks, Alex Lawson Social Security Works -- MICHAEL'S EMAIL -- Peter, Florida Senator Rick Scott is back with another dangerous idea about Social Security and Medicare. Senator Scott earned infamy last year when he released a plan ahead of the midterm elections that Mitch McConnell described as “sunsetting Social Security and Medicare within 5 years.” Now, with his party threatening a government default that would throw millions of Americans out of work, Senator Scott told a radio host that Social Security and Medicare are “like alcoholism.” Extremist Republicans like Rick Scott and Kevin McCarthy are threatening our Social Security and Medicare! Social Security Works is leading the charge to fight back! As a reminder, before he became a politician, Senator Scott ran the company responsible for what at the time was the largest-ever fine for Medicare fraud. So we know that when he looks at our earned benefits, he’s thinking about how to reach his hand into our pockets and take our money. Let’s be clear: Social Security cannot by law add even a penny to the deficit. The very things that Republicans claim to want to avoid―higher borrowing costs in the future, recession, and inflation―would all be triggered if they successfully throw our county into default. They’re creating a crisis, and hoping to use the chaos to achieve long-held goals of destroying Social Security and Medicare. Thanks, Michael Phelan Social Security Works

[phkrause]

Senators Bernie Sanders and Elizabeth Warren are introducing the Social Security Expansion Act of 2023 soon.  

The Expansion Act doesn’t just expand benefits―it maintains the Social Security trust fund’s surplus for decades into the future.

Republicans are still dead-set on cutting our Social Security benefits. Just this week, 2024 presidential hopeful Mike Pence unveiled a plan to privatize Social Security, and Republicans are still floating ideas like raising the retirement age as payment for preventing a credit default for our country.

The best defense is a good offense. When Republican enemies of Social Security insist that we have no choice but to cut benefits, the Social Security Expansion Act proves them wrong.

When Social Security Works was founded, the conventional wisdom in DC was “everyone knows we’re going to cut Social Security, the only question is by how much.” The extreme left position in Congress was Bernie Sanders’s “no cuts” resolution.

Today, a decade later, we have changed the conversation. Republicans are still catching up, but the American people are with us. 82% of voters want Congress to increase Social Security benefits.

We’ve built a powerful movement, and we’re not slowing down. We will never let Republicans destroy Social Security and Medicare. We will fight to make sure that they are expanded, and we won’t let enemies of our earned benefits hide behind weasel words.

Thanks,

Michael Phelan
Social Security Works

[phkrause]

GOP shocked, SHOCKED to learn that they want to destroy Social Security and Medicare

Republicans were outraged—OUTRAGED!—Tuesday night when President Joe Biden accused them of trying to “sunset” Social Security and Medicare. How dare he! How in the world could they possibly do such a dastardly thing?

https://www.dailykos.com/stories/2023/2/8/2151805/-Neatly-done-Mr-President-Neatly-done?

[bonnie]

For those that rely on the truth and accuracy of fact checkers ..........

PolitiFact | Debunking a fake claim about cuts to Social …

 

https://www.politifact.com/.../debunking-fake-claim-about-cuts-social-security-if

Claim: A House Republican plan says that if the GOP wins the majority, “Retirees who have a pension, IRAs, 401k, disabled veteran benefits will be ineligible for Social Security benefits.”

Pants On Fire

 · 

Fact checked by politifact.com

[bonnie]

1 minute ago, bonnie said:

For those that rely on the truth and accuracy of fact checkers ..........

PolitiFact | Debunking a fake claim about cuts to Social …

 

https://www.politifact.com/.../debunking-fake-claim-about-cuts-social-security-if

Claim: A House Republican plan says that if the GOP wins the majority, “Retirees who have a pension, IRAs, 401k, disabled veteran benefits will be ineligible for Social Security benefits.”

Pants On Fire

 · 

Fact checked by politifact.com

Left leaning and they agree it is a lie. Imagine that

 

PolitiFact Media Bias | AllSides

 

https://www.allsides.com/news-source/politifact

WebAug 21, 2012 · PolitiFact is a fact check source with an AllSides Media Bias Rating™ of Lean Left. Fact checking sites display bias in what stories they choose to fact check, as …

• Bias Rating: Lean Left
• Region: National

• Owner: Poynter Institute
• Type: Fact Check

[bonnie]

While there is an element of truth in that these social welfare programs could be phased out in Scott’s model, the DSCC claim overreaches by painting that uncertain outcome as a broad party position, giving voters a misleading impression.

We rate the claim Mostly False.

 

 

By 

Tom Kertscher

, PolitiFact reporter

 

An 11-point agenda proposed by Sen. Rick Scott, R-Fla., continues to produce fodder for attack ads from Democrats.

Scott’s plan, which he pitched as a platform for the GOP should the party take back Congress in November, indicated support for raising income taxes on millions of Americans by saying that all Americans should pay some income tax, and half don’t. Democrats like Rep. Val Demings teed up the plan to falsely tag Sen. Marco Rubio, R-Fla., as supporting Scott’s pitch. Demings is running for Rubio’s Senate seat

Now the Democratic Senatorial Campaign Committee — the direct rival to the Republican Senatorial Campaign Committee that Scott chairs — is going after another plank of Scott’s plan.

Its 30-second TV ad uses clips from a Fox News interview of Scott. The anchor questions Scott about how the plan would raise taxes and "potentially sunset" programs such as Social Security and Medicare. Then these words appear on the ad’s screen:

"SENATE REPUBLICANS’ PLAN — END SOCIAL SECURITY"

"SENATE REPUBLICANS’ PLAN — END MEDICARE"

Claims that Social Security and Medicare are imperiled are common during election campaigns. The DSCC attack goes too far in framing Scott’s idea as a broadly supported death sentence for Medicare and Social Security.

The first thing to know is that Scott’s plan, released Feb. 22, was proposed by him — not a group of Senate Republicans. Leading Republicans such as Senate Majority Leader Mitch McConnell of Kentucky quickly panned parts of it.

The next is that it didn’t directly call for ending those programs as the ad bottom-lined. It calls for all federal legislation to sunset within five years. That leaves open the possibility of those programs ending were Congress not to approve them again.

In rejecting Scott’s proposal, McConnell said, "We will not have as part of our agenda a bill that raises taxes on half the American people and sunsets Social Security and Medicare within five years."

The meaning of ‘sunset’

Scott’s plan mentions Social Security and Medicare once, in a section labeled Government Reform/Debt: "Force Congress to issue a report every year telling the public what they plan to do when Social Security and Medicare go bankrupt."

The plan also says: "All federal legislation sunsets in five years. If a law is worth keeping, Congress can pass it again."

data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%27120%27%20height=%2790%27/%3e

Fact check: How did Republican Richard Hudson vote on insulin price bill?

The nonpartisan Congressional Research Service says "the sunset concept provides for programs and agencies to terminate automatically on a periodic basis unless explicitly renewed by law."

Under Scott’s plan, all federal laws, including those creating Social Security and Medicare, would expire after five years. Congress would have to renew the laws it wants to keep.

As the New York Times reported: "Taken literally, that would leave the fate of Medicare, Medicaid and Social Security to the whims of a Congress that rarely passes anything so expansive."

As PolitiFact Wisconsin reported, Scott’s statement was generic and did not directly call for the phasing out of either program.

The DSCC ad cites a news story that points out that Social Security and Medicare would be ended only if the laws creating them were not renewed.

Scott in the past has raised concerns about the impact of the two programs on the federal debt.

PolitiFact ruling

The Democratic Senatorial Campaign Committee claimed that the "Senate Republicans’ plan" would "end Social Security" and "end Medicare."

The ad refers not to a plan from Senate Republicans but from one Republican, Scott. The plan would sunset all federal laws after five years, requiring Congress to renew the laws it wants to keep. Federal sunsetting provides for programs to terminate automatically on a periodic basis unless they are explicitly renewed by law.

While there is an element of truth in that these social welfare programs could be phased out in Scott’s model, the DSCC claim overreaches by painting that uncertain outcome as a broad party position, giving voters a misleading impression.

We rate the claim Mostly False.

[phkrause]

In GOP-held Florida, Biden says no cuts for Social Security

TAMPA, Florida (AP) — With an eye toward the 2024 campaign, President Joe Biden took direct aim at Republicans who have floated cuts to Social Security and Medicare — telling an audience in Florida on Thursday that he would create a “nightmare” for anyone who dreamed of doing so.

https://apnews.com/article/biden-politics-us-republican-party-florida-government-programs-f93b14ed9d08b2fb1e143cd8756783a4?

[phkrause]

Fact check: Social Security does contribute to federal deficit and national debt

The claim: Social Security has 'nothing to do' with deficit and national debt

"Dear Republican Party, If you take or cut OUR Social Security, I will bring a lawsuit against you for all the money taken from MY paychecks," reads the post. "Social Security has nothing to do with the deficit or the national debt. You created that fiction and we’re not falling for it."

https://www.usatoday.com/story/news/factcheck/2023/02/08/fact-check-social-security-does-contribute-federal-deficit-debt/11185952002/?

[bonnie]

That is a response to something that hasn't been part of any discussion I dont think. However it was Bernie Sanders and I think some other democrats that made that claim

 

Sanders Misleads on Social Security

By Lori Robertson

Posted on October 12, 2015

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Sen. Bernie Sanders repeats a Democratic talking point in saying that Social Security hasn’t contributed “one penny” — or “one nickel” — to the deficit. In fact, it contributed $73 billion to the deficit in 2014.

Sanders, an independent who’s running for the Democratic nomination for president, has made this claim several times, recently saying in a video he sent out on Twitter on Oct. 6 that “Social Security does not add one nickel to the deficit.” On Sept. 25, he tweeted that the program “had not contributed one penny to the deficit.” And he, like other Democrats, has been making the claim for several years.

Sanders is talking about what’s called the “on-budget” deficit, while Social Security is considered an “off-budget” program. But in terms of actual federal revenue and outlays, and borrowing, Social Security is contributing to yearly deficits and has been since 2010. Sanders himself has considered Social Security to be a part of the overall budget: On his Senate website, he includes raising the income cap on Social Security taxes as one way to “reduce the deficit.”

“Social Security adds to the unified deficit, which is the deficit we almost all discuss all the time,” Marc Goldwein, senior vice president and senior policy director at the bipartisan Committee for a Responsible Federal Budget, told us in an email interview. “It does so because we spend a lot more on Social Security benefits than we raise in payroll tax and other related revenue.”

Goldwein told us that Sanders’ statement contains a kernel of truth in that Social Security technically can’t run a debt. “That means that any [yearly] deficits it’s running now can only legally be paid because it was running surpluses in the past,” he says. But the government spent the surplus on other things. It owes Social Security the money, which is held in the form of Treasury securities. In order to pay it, the government must cut spending in other areas, raise taxes or borrow from the public.

Because current payroll taxes don’t produce enough revenue to pay Social Security benefits, the program is contributing to the yearly deficits.

Deficits and ‘Off-Budget’ Spending

We wrote about this claim in 2011, when other Democrats made the not-one-penny claim. As we said then, Social Security for years brought in more revenue through payroll taxes than it paid out in benefits, lessening the federal deficit and allowing Congress to spend more money in other areas. But that changed in 2010, when benefits paid outpaced revenues generated.

That year, the nonpartisan Congressional Budget Office said Social Security had a $37 billion primary deficit and projected a $30 billion deficit in 2014. The deficit actually was $73 billion in 2014, says CBO, which now estimates that the yearly deficit will rise to $177 billion in 2020 and $361 billion in 2025. (The “primary deficit” is the total budget deficit excluding interest payments.) CBO expects outlays to continue to rise, compared with the size of the economy, as baby boomers retire and retirees live longer, but tax revenues “will remain at an almost constant share of the economy.”

CBO’s projections show that Social Security’s balance is expected to grow for several years, but that’s because Treasury must credit the trust funds with interest payments on past borrowing. The government will have to either increase taxes, cut spending or borrow from the public to pay that interest that it owes to itself.

This doesn’t mean that Social Security benefits are in danger, at least not in the next few decades. The government can make up that gap between Social Security revenues and outlays with the Social Security trust funds, essentially cashing in Treasury bonds it holds for that amount or using interest paid on those bonds. The Trustees of the Social Security and Medicare trust funds’ most recent report says: “Interest income and redemption of trust fund assets from the General Fund of the Treasury, will provide the resources needed to offset Social Security’s annual aggregate cash-flow deficits until 2034.” At that point, the trust fund would be exhausted. CBO estimated the trust fund would be depleted earlier, in 2029.

Once the trust fund is gone, Social Security can still pay benefits — but not more benefits than it takes in from revenue. The trustees say tax income would be able to cover three-quarters of the benefits through 2089.

Sanders, and other Democrats, claim that Social Security doesn’t add to the deficit, because it still has that trust fund to make up the financing gap. Sanders said in his video: “Social Security has a $2.8 trillion surplus and according to the Social Security Administration can pay out every benefit owed to every eligible American for the next 19 years. … Social Security is independently funded by the payroll tax … that means that Social Security does not add one nickel to the deficit.”

That’s correct in theory, but not in practice. “Politicians decided to classify Social Security and the postal service as ‘off budget’ so that they would be treated as their own programs and not as part of the government,” Goldwein says. “It didn’t work. Everyone uses the unified budget deficit concept.”

That includes Sanders, who, Goldwein points out, listed raising the income cap on Social Security taxes as one way to “reduce the deficit” and said in a 2013 press release that 2009’s $1.4 trillion deficit was on track to be reduced by more than half — that’s the total, unified deficit. And in a speech in March, Sanders said: “From 1998-2001, the budget was in surplus.” But the “on-budget” surpluses only occurred in 1999 and 2000. The U.S. government had budget surpluses for all four of those years, because the “budget” is the total budget. (See Table H-1 of this CBO report.)

When politicians, economists and experts like the Congressional Budget Office talk about the “deficit,” they’re talking about the combined effect of all government revenues and spending. As the nonpartisan Tax Policy Center says: “Despite the formal separation of Social Security from the rest of the budget, budget debates in Congress and the media focus mainly on the unified budget balance, that is, the combined balance of Social Security and the rest of government.”

The Committee for a Responsible Federal Budget says that even if Social Security is viewed as an “off-budget program,” it still indirectly adds to the on-budget deficit.

CRFB, Aug. 13, 2015: If viewed as an off-budget program, Social Security does not directly add to the “on-budget deficit.” However, it indirectly contributes to the on-budget deficit because the interest payments it receives from the general fund are on-budget. It also receives funding from income tax revenue on Social Security benefits, which is technically on-budget, and has at times received general revenue transfers to compensate for policies that would reduce Social Security revenue (such as when lawmakers cut payroll taxes in 2011 and 2012).

For years, Social Security was a boon to the government’s bottom line, lowering the deficit and even causing a budget surplus in 1998 and 2001. But now outlays outpace revenues, and the government has to use deficit spending to honor its obligations to the program.

CRFB issued a report in August, marking the 80th birthday of Social Security and identifying several common falsehoods about the program. It says it’s a “myth” that “Social Security cannot run a deficit.” We agree.

— Lori Robertson, with Raymond McCormack

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