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Social Security checks would be cut 11% to 35% for the worker who draws $50k in benefits. All income levels would see reductions, except the very bottom (receiving about $12k), who might see a small increase.
This bill will be deliberated in 2017.
Wow. Those are stiff cuts. Many are going to fall into poverty, if this happens. If not poverty, this will drastically affect the ability of many to maintain their homes and cars and other necessities of life that they have budgeted out already.
No one is going to "fall into poverty" who isn't already there.
No one is going to "fall into poverty" who isn't already there.
The proposal also will target higher income people, not the people near the property level. But that doesn't generate enough emotional drama as the one that people fall into poverty.
Social Security checks would be cut 11% to 35% for the worker who draws $50k in benefits. All income levels would see reductions, except the very bottom (receiving about $12k), who might see a small increase.
This bill will be deliberated in 2017.
Wow. Those are stiff cuts. Many are going to fall into poverty, if this happens. If not poverty, this will drastically affect the ability of many to maintain their homes and cars and other necessities of life that they have budgeted out already.
There are many, many, folks working every day for less than 50K a year. Most people on SS do not get anywhere near 50K a year. It won't effect most people anyway, just the ones who likely don't need it anyway. This is nothing New being discussed. Its been in the works for years, regardless of the Party in power.
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Last edited by volosong; 12-10-2016 at 04:20 PM..
Reason: off topic political discussion
If the Government would do away with the SS Fraud, we would have a lot more in the fund. There are people getting benefits that should not be getting them. People getting disability, yet going out and doing things that are a clear indication of the fact that they can work, instead of scamming the taxpayer.
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Last edited by volosong; 12-10-2016 at 04:22 PM..
Reason: off topic political comment
I see where the raising of the full retirement age pertains to younger people, of course. But not the cutting of benefits. The formula for calculating benefits will change, which will affect all beneficiaries, and result in massive cuts to all. I don't see a disclaimer about age for that.
Quote:
However, the bill is even more sinister than a plan cut, because it attacks the fundamental basis of the entire program. The raising of the retirement age and the cutting of benefits opens the door to Social Security being reshaped from a retirement program for all to a program for older Americans while everyone else has their retirement privatized.
House Democratic Leader Rep. Nancy Pelosi (D-CA) said that Johnson’s bill cuts Social Security benefits by more than one-third, “Cutting Social Security would have devastating consequences for Americans’ retirement security. At a time when Americans are more anxious about their retirement than ever, the top Republican on the Social Security Subcommittee is rolling out legislation that cuts benefits by more than a third, raises the retirement age from 67 to 69, cuts seniors’ cost of living adjustments, and targets benefits for the families of disabled and retired workers.”
If the Government would do away with the SS Fraud, we would have a lot more in the fund. There are people getting benefits that should not be getting them. People getting disability, yet going out and doing things that are a clear indication of the fact that they can work, instead of scamming the taxpayer.
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I read that fraud accounts for only about 3% of SS...not enough to make much difference. And there is no chance of routing out all fraud of anything. There is fraud in any and every program that has ever existed, from tax returns to SS to deductions and exemptions to capital gains to housing sales to abiding by EPA laws to oil spills.
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However, SS was never designed to pay for disabled people. So that is a part of the program that has hit it very hard. People getting disability payments when they didn't work and contribute for decades. But who wants to pull disabled people off SSI? It should have had its own program, IMO.
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Last edited by volosong; 12-10-2016 at 04:27 PM..
Reason: off topic, politicizing
I see where the raising of the full retirement age pertains to younger people, of course...
From the SSA summary of Johnson's proposed bill: "For retired worker and disabled worker beneficiaries becoming initially eligible in January 2023 or later, phase in a new benefit formula..."
"Use an annualized “mini-PIA” formula beginning with retired and disabled worker beneficiaries becoming newly eligible in 2023..."
"Replace the current-law Windfall Elimination Provision (WEP) with a new calculation for most OASI and DI benefits based on covered and non-covered earnings, phased in for beneficiaries becoming newly eligible in 2023..."
"After the normal retirement age (NRA) reaches 67 for those attaining age 62 in 2022, increase the NRA by 3 months per year starting for those attaining age 62 in 2023..."
So - who will be turning 62 starting in 2023?
Last edited by volosong; 12-10-2016 at 04:28 PM..
Reason: orphaned
Do you realize most people don't earn $50k in benefit? My husband was a high earner and he gets less than $2k a month. He is not complaining.
No one gets 50k on benefit now even at age 70 the max is around 42k. What his plan would do is to offset and penalize the results of waiting. If you raise the eligibility age without capping the increase from waiting you just raise the average benefit.
Perhaps this is a Backdoor effort to increase support for privatization by higher incone workers . Makes Ryan's plan more palatable in comparison.
I know that the chained CPI for beneficiaries with income less than $85,000/$170,000 and the zero COLA for those making more than $85,000/$170,000 is proposed to start in 2018.
I'll look most closely at the 30 page SSA summary tomorrow to see if there are other significant surprises. Considering that the analysis showed that some of the provisions resulted in either teensy savings on the order of -0.005 % to +0.005 and at least one provision that increased the costs of the program, Johnson probably should have waited until he received the analysis before introducing the bill. OTOH, this leaves him room to negotiate.
I can't wait to hear Marco Rubio's opinion on the zero COLA.
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