A Biden Backdoor Cut to Social Security Benefits? - AMAC & The Motley Fool
Sen. Bill Cassidy (R-LA) has been in the news a great deal as of late sounding the alarm on Social Security’s ill financial health. Cassidy has been working with other senators on proposed solutions, including raising the retirement age. He made headlines grilling Treasury Secretary Janet Yellen at a recent hearing by noting the President’s budget has nothing in it to shore up Social Security, not even with the tax increases proposed. Cassidy claims he has been trying to get Biden to meet with him and others to no avail to discuss solutions to insolvency. In about 9-10 years the program will be unable to pay full benefits. All recipients will realize cuts of about 23% immediately. Cassidy’s message is becoming clear– doing nothing means one must support the default, which is big across the board Social Security cuts, thus the “backdoor cut.” Keith Speights explains it all in the full piece here, and notes the good news in all of this is that politicians of both parties are beginning to have conversations about insolvency that have been absent for about a decade.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved without tax increases by changing cost of living adjustments, increasing the retirement age, and modest adjustments to the highest income beneficiaries. The AMAC plan also suggests eliminating taxation of benefits, or at least annually adjusting the amount taxed for inflation, and eliminating the reduction of benefits for those who work before full retirement age. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with a great many congressional offices and their staffs over the past several years.