Seeking a Bipartisan Solution for Social Security’s Future Insolvency - Washington Post
Interesting how the climate can change so quickly. With Republicans now holding the majority in the House of Representatives, and with the national debt ceiling already reached, lawmakers are scurrying to prevent default on government obligations while trying to simultaneously address the budget deficit. Fact is, the government spends much more than it receives in revenue and has done so for years, a trajectory which must be slowed. And whenever cutting government expenses are entertained, Social Security inevitably enters the discussion. But here’s a stark reality – Social Security’s now pays out more in benefits then it receives in revenue, with the difference made up by Trust Fund reserves so full benefits can be paid. According to the Congressional Budget Office (CBO) those reserves will be depleted by about 2033, necessitating an across-the-board cut in benefits for every recipient. Social Security must be reformed or everyone’s benefits will be cut by about 23% in about 10 years.
Against that backdrop, and despite the political sparring we now see among both political parties and the Biden Administration, it appears as though some legislators in both parties are starting to face the reality that Social Security reform has become urgent. Notably, Democratic Senator Joe Manchin has signaled he is open to discussions about reigning in entitlement costs as long as no cuts to current Social Security recipients are included (read that cuts to benefits for future generations are negotiable). And interestingly, that aligns squarely with the position most Republican legislators have adopted as well. A glimmer of potential bipartisanship? Hopefully so because, as this Washington Post article by Tony Romm suggests, a bipartisan solution to Social Security’s pending insolvency is the only way to a cure. Click here to read more.
AMAC has been at the forefront trying to strengthen Social Security by developing and proposing its Social Security Guarantee which restores the program to solvency without raising payroll taxes. AMAC has been discussing and continues to discuss this common-sense solution with Congressional Representatives in its efforts to protect America’s senior citizens who rely on Social Security. To review AMAC’s Social Security Guarantee, click here.