This group loses big under GOP Social Security plan

[groundloop]

This discussion thread was locked as off-topic by NancyBlueINOklahoma (a host of the Latest Breaking News forum).

Source: CBS News

How to tackle the Social Security funding gap is the subject of renewed attention now that the GOP has made an official proposal. According to a bill recently introduced by House Ways and Means Social Security Subcommittee Chairman Sam Johnson, R-Texas, the retirement benefits programs yawning deficit would be eliminated by large benefit reductions accompanied by tax cuts on affluent retirees, but with no rise in revenue to the system through tax increases.

The most significant benefit reductions include restructuring the formula that calculates the monthly benefit, increasing the retirement age and reining in cost-of-living adjustments (COLAs) for current retirees. The proposed benefit reductions would be phased in gradually, hitting the youngest workers the hardest compared to older workers who are approaching their retirement date.

And that raises a key question for those younger workers, in particular millennials: How much could they lose under this GOP proposal? As a group, they could see an estimated 25 percent benefit reduction, compared to an estimated 21 percent across-the-board cut in 2034 if the system isnt reformed by then. That means millennials could be worse off under the GOP proposal compared to if the Social Security trust fund were simply allowed to be exhausted and benefits were reduced across-the-board.

Why are millennials projected benefits under the GOP proposal lower than projected benefits after an across-the-board reduction under the current law? To keep the system solvent, the GOPs benefit cut for millennials helps pay for the income tax reduction for affluent retirees and helps pay for phasing in benefit reductions for older workers instead of abruptly decreasing their benefits.


Read more: http://www.cbsnews.com/news/this-group-loses-big-under-the-gop-social-security-plan/

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Let me reiterate what the article says: To keep the system solvent, the GOPs benefit cut for millennials helps pay for the income tax reduction for affluent retirees

It's been said millions of times, yet won't repubs listen: GET RID OF THE WAGE CAP ON SOCIAL SECURITY TAXES AND THE SYSTEM WILL BE PERFECTLY FINE.

[guillaumeb]

1. And all of this ignores that taxing all income, earned and unearned, would keep the program

solvent forever. But this would be a tax on the 1% and can never be considered.

[mdbl]

2. Pigs!

There's no better word for them.

[Hoyt]

4. Do you think GOPers, or even Dems, would impose new tax of 12.4% on people making over $118,500?

Plus, if you read the projections, that would only solve part of the "projected" deficit unless you make people pay the SS tax on higher incomes but limit their benefits to that earned by someone making $118,500.

I just don't think that would fly with most people. However, some smaller surcharge or something without benefit increases might fly. Of course, if Trump does lower income taxes that might be an opportunity to add additional SS taxes. But, it's questionable what kind of tax reform could actually pass.

[guillaumeb]

9. That income level only affects 1% of all voters.

And if unearned income is included, again, that affects the 1%. But given that Senators and Representatives are in the top 1% based simply on their Congressional salaries, only a huge voter outcry might get this conversation started.

[Hoyt]

12. Actually, there are more like 18% of people who make at least that much, and they account for a lot

more of the income tax collected. I just don't think it's going to happen with GOPers in charge, and I doubt many Democrats would support it either. So, what are we going to do? -- sit here and do nothing for 20 years until the law as it is currently written requires everyone's benefits -- including those at the lowest levels -- to be cut automatically.

[SpankMe]

3. It can't be said enough: Republicans are motherfuckers. n/t

[Ccarmona]

5. Lying CBS

There's no "funding gap". The media, once again, are spouting Repugs talking points as facts and without challenge. Despicable!

[SunSeeker]

6. K & R for exposure.

[vkkv]

7. This, on TOP of no minimum wage increases.. Pay employees MORE MONEY and they'll be

HAPPY to PAY MORE TAXES!

YOU REPUBLICAN ASSHOLES !!

[Angry Dragon]

8. repubs love DEATH PANELS

[pangaia]

10. It's because our demo 'reps' are silent.. Too chicken shit to say anything.

Where the fuck are they???

That's what we hired them for...

[hibbing]

11. "reining in cost-of-living adjustment"

I love corporate media and their language. The COLAS have just been going up up up so much that they need to be reined in.

Peace

[Ilsa]

13. You beat me to it.

It's a 0.3% increase for next year. For many of them, it simply means rounding up to the next five-dollar increment.

[doc03]

14. I got my explanation of SS benifits

last week my benifits went up .3% but Medicare took it all and my Medicare sup went up $11.85
So I will have $11.85 less income.

[Ilsa]

16. Same happened to my MIL.

Her increase was $3.35, but Medicare increases set her back $8.50.

[doc03]

15. I think they should put a small tax on

all security trades, it would generate trillions.

[OKNancy]

17. so sorry to lock this, but this is an analysis article, not BREAKING news

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