Since the election, Republicans have made it clear that they plan to use their unified control over government to destroy Medicare. Just before Congress left for the holidays, Rep. Sam Johnson (R-TX) introduced the “Social Security Reform Act” – an impressive wish list of devastating Social Security cuts and upper-income tax breaks.
The Economic Policy Institute Policy Center has crunched the numbers on the Johnson plan, and they are even scarier than we thought.
More than TWO-THIRDS of beneficiaries would see, on average, a 27% cut in benefits as Washington Republicans start 2017 by:
- Raising the retirement age to 69 (equivalent to a 13.5 percent across-the-board cut)
- Changing the benefit formula (9 percent average cut)
- Slashing the cost-of-living adjustment (13 percent average cut)
- Some long-lived beneficiaries could see cuts of up to 74 percent!
- Eliminates the taxation of benefits on high earners–giving a tax cut to those who need it least while reducing revenue back into the Social Security trust fund
- Disproportionately hurts women and low-income workers who had employment gaps due to caregiving and unemployment. And, it hurts those who had uneven earnings during their wage-earning years.
MotherJones gives us yet another look at what Rep. Johnson’s bill would actually do over time. Roughly speaking, people with extremely low average earnings over their working lives would see their benefits rise. I think most of us could agree that’s a good thing. After all, none of us want to see Gram and Gramps eating dog food three times a day.
However, those of us with an average lifetime income over $22,000 would see our benefits slashed—including those of us who are already drawing social security. Making $49,000 is by no means considered “rich” — unless your name is Sam Johnson — but his plan would slash their benefits by a third.
Here’s the crazy part: Rep. Johnson says his plan ensures the long-term health of Social Security’s trust fund — but it does that by dramatically cutting benefits by an average of 27% per person. But even in the worst-case scenario for Social Security, one in which the wealthiest Americans don’t pay their fair share, Social Security can still pay 79% of promised benefits. So what it all comes down to is that Rep. Johnson’s bill would cut benefits by 27% to ensure that no one will suffer a 21% cut a few decades from now.
Rep. Johnson chairs the Ways and Means Social Security Subcommittee. Here are links to information about the bill he announced on December 8, 2016 which he’ll most likely reintroduce in the 115th Congress and push forward:
- To learn more about Chairman Johnson’s Social Security Reform Act of 2016, CLICK HERE.
- To read the full bill text, CLICK HERE.
- To read the Social Security Actuary letter, CLICK HERE.
Democratic Leader Nancy Pelosi released the following statement after the Republican Chairman of the Social Security Subcommittee of Ways and Means, Chairman Sam Johnson, introduced legislation that would inflict deep cuts in Social Security benefits:
“Apparently nothing upsets House Republicans like the idea of hard-working people getting to enjoy a secure and dignified retirement. While Speaker Ryan sharpens his knives for Medicare, Chairman Johnson’s bill is an alarming sign that Republicans are greedily eying devastating cuts to Americans’ Social Security benefits as well.
“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.
“Slashing Social Security and ending Medicare are absolutely not what the American people voted for in November. Democrats will not stand by while Republicans dismantle the promise of a healthy and dignified retirement for working people in America.”
President-elect trump*, who ran on the promise that he wouldn’t cut benefits and specifically opposed raising the retirement age, has so far not commented on Johnson’s plan. Not even a tweet.
Social Security and Medicare are OUR DEFERRED EARNINGS held in trust for us as taxable pensions and healthcare insurance by the US Government. trump* campaigned claiming he would NOT cut Medicare and Social Security. We need to hold him to his promises. Together, we must stand against any and all Republican attempts to destroy Social Security. If you haven’t done so before, it’s well past time that you picked up the phone and called BOTH Sen. Dean Heller’s and Rep. Mark Amodei’s offices:
Senator Heller: 202-224-6244 (DC) / 702-388-6605 (LV) / 775-686-5770 (Reno) / 775-738-2001 (Elko)
Rep. Amodei: 202-225-6155 (DC) / 775-686-5760 (Reno)
Related Posts:
- Talking Points Memo (TPM): Key House GOPer Introduces Bill With Major Cuts To Social Security
- Mother Jones: Sam Johnson Wants to Cut Your Social Security Benefits By a Third
- Center for Budget & Policy Priorities: Policymakers Should Reject Chairman Johnson’s Deep Cuts to Social Security
- Slate: Merry Christmas! Here’s a House Republican Plan to Cut Social Security
- NewsMax: Rep. Johnson’s Social Security Bill Would Cut Benefits
* lost the popular vote in an election were just about as many people didn’t vote as did, by almost 3 million votes, but still won.