Social Security Expected to Dip Into Its Reserves This Year - DUE TO TRUMP TAX CUTS

[CousinIT]

Trump's tax cuts were MEANT to help DEFUND (BREAK) Social Security & Medicare -- NOW we'll see the result and we'll ALL SUFFER.

https://www.wsj.com/articles/social-security-expected-to-dip-into-its-reserves-this-year-1528223245

The Social Security program’s cost will exceed its income this year for the first time since 1982, forcing the program to dip into its nearly $3 trillion trust fund to cover benefits.

By 2034, those reserves will be depleted and Social Security will no longer be able to send it its full scheduled benefits, according to the latest annual report by the trustees of Social Security and Medicare released Tuesday.

Unless Congress acts to bolster the program’s finances, beneficiaries would receive about three-quarters of their scheduled benefits after 2034.

Last year’s tax-cut package also cut into both Medicare and Social Security’s projected revenue over the next few years. Lower income-tax rates from the law reduced projected revenue from the taxation of Social Security benefits. That means less money flowing into both programs, according to the trustees’ report.

Additionally, President Donald Trump’s decision to end a program offering young undocumented immigrants reprieve from deportation while allowing them to work reduced anticipated tax revenue into the Social Security program.

[Raster]

1. So, tax cuts for billionaires have consequences, eh?

[MarcA]

2. Wonder how Fox will sell this to its older audience.

If you have older Fox/Trump members of your family confront
them with it.

[CousinIT]

3. Already sent the article + quotes to a couple of them in my family

They'll likely say: "oh well it's going broke anyway!" -- which is NOT TRUE. https://www.democraticunderground.com/100210685663

[MarcA]

4. Good Job! At least you are trying. n/t

[JustABozoOnThisBus]

11. "It'll be phased in, starting with younger retirees"

As long as my social security and medicare is safe, screw the younger retirees and the soon-to-be retired.

The "phase-in" of social security's elimination will split the opposition between haves and have-nots. again.

Divide and conquer.

[Butterflylady]

5. Omg!

If nothing is done about global warming, we might all be dead or close to it by then.

[Voltaire2]

6. Aren't fica tax rates independent of income tax rates?

SS is a flat tax with a cap and Medicare is flat with no cap. How did the tax cut alter revenue for ss?

[Hoyt]

8. A portion of taxed social security benefits goes back into the trust fund.

[Voltaire2]

13. Ah - that is true, but the tax changes didn't change the limit on income

- which by the way hasn't changed since the 80's, which is a separate bit of screwage - so the only change there is the rate change on income taxes. That seems minor enough to me that it should have been offset by the increased FICA revenue from growth in employment.

I remain dubious.

[Hoyt]

14. I bet 2 or 3% percentage point reduction per year adds up, as might impact of standard deduction.

Problem with growth in employment is it is also a growth in people who will eventually earn benefits or higher benefits. That growth is good, but does impact how quickly the fund drains.

[Achilleaze]

7. Wow - republicans are stealing America's Social Security

Bastards...republican fatcats have been axing away at SS for some time.

[Cha]

9. How are those thinking the Fraud would actually

help them liking him now? ?

The ones who believed all the LIES by jill stein and the Fake himself?!

[Hoyt]

10. Folks bashed Obama when he wanted to review SS, we're going to wish he'd done it rather than GOPers.

[mahatmakanejeeves]

12. Adding a link

Economy & Politics
Capitol Report

Social Security to tap into trust fund for first time in 36 years

by Robert Schroeder White House Reporter

Published: June 5, 2018 4:43 p.m. ET

[spanone]

15. well, the 1% doesn't need their social security

[CousinIT]

16. WHERE are our Democratic leaders on this? Today's Trustee Report would be a PRIME opportunity...

...to point out how much the Trump tax cuts will damage social security & Medicare, and how DEMOCRATS will save it by making millionaires and billionaires pay their fair share. "A better deal", they've called their agenda.

Why are THEY not out there today and for the rest of the week giving Americans the facts about these programs - particularly as relates to the tax cuts and ending DACA?

Total crickets!

[Eko]

19. They should storm all the news agencies and take over the air waves!!

Not sure I really need to add this but,

[DeminPennswoods]

17. Sigh... There are no Social Security "reserves"

Social Security does not have "reserves". It is NOT like you or me saving money in a bank or investment
fund or IRA/401k for a rainy day and/or retirement.

Social Security is a pay-as-you-go program. If it takes in more in social security taxes than it pays out in benefits, the "excess" is, by law, invested in US Treasury Bonds. When or if the program pays out more than it takes in, then the Treasury bonds will be cashed in, just as any other investor would do. Those Treasury bonds are already accounted for in the debt obligations portion of the budget. When those Treasury bonds are depleted, then whatever the difference is between social security tax revenue and payments will be met with general funds from the yearly budget. Years ago I read an article saying that social security payment differential would be approximately 2% of the federal budget.

[CousinIT]

18. It should NEVER need any money from the general funds. THEN it becomes part of the budget

and is more easily subject to CUTS. I'd guess that is yet another "advantage" to it being depleted by dumbass tax cuts. This is what they WANT - to turn it into a "welfare" program that is means-tested and comes out of the general budget so they can CUT/gut it.

If we had the balls here to make billionaires and millionaires pay their fair share of TAXES (remove the damn cap, for instance or at least raise it), there would be NO need for any money from the general fund.

EDIT: It's not that we can't "afford" social security or its taxes. Affordability isn't the issue. GREED-DRIVEN choices by the billionaires who own and control our so-called "representatives" is the issue.