(States Newsroom) Washington On Thursday, President Donald Trump issued a proclamation commemorating Social Security’s 90th anniversary, but he made no recommendations on how to prevent the program from going bankrupt or seeing a sharp decline in payouts over the next ten years.
During an Oval Office appearance, Trump, who ran on a platform of preserving the income stability program for America’s elderly, declared that Republicans would continue to fund the program.
However, neither Trump nor Republican congressional leaders have taken the problem seriously or introduced legislation that would prevent a 2033 cut in Social Security benefits.
“Under this administration, we’re keeping that promise and strengthening Social Security for generations to come.” Trump stated, “I made a sacred pledge to our seniors during the campaign that I would always protect Social Security. You keep hearing that Social Security will disappear in six or seven years. And if the Democrats ever get engaged, it will be because they are inexperienced.
However, it will be with us for a very long time. Absolutely, some of the stats will surprise you.
One big, beautiful law speeds up fund depletion
Without adjustments, the Old-Age and Survivors Insurance trust fund will no longer be able to provide full benefits beginning in 2033, according to the most recent Social Securitytrustees report, which was published earlier this year.
According to the research, the fund’s reserves will be exhausted at that point, and ongoing program revenue will be enough to cover 77% of all scheduled benefits.
However, Republicans’ big, gorgeous law will accelerate that period.
In a statement issued earlier this month, Social Security Administration top actuary Karen Glenn stated that the GOP law’s lower tax rates will result in less money going into the trust fund.
Glenn noted that the OASI Trust Fund’s reserve depletion date has been pushed from the first quarter of 2033 to the fourth quarter of 2032 due to the new law’s increased program costs.
Bipartisanship needed
In order to prevent insolvency, lawmakers will have to engage in negotiations with Democrats in the next years as Republicans are unable to reorganize Social Security on their own.
Bipartisanship is the only way to prevent a reduction in payments for America’s pensioners because Social Security cannot be addressed through the budget reconciliation process, which GOP senators used to enact their big, beautiful package.
In a post published Thursday, the Committee for a Responsible Federal Budget stated that insolvency and the statutorily mandated benefit drop must be avoided immediately.
According to CRFB, a typical couple retiring shortly after insolvency will see a $18,400 reduction in annual payments if no new legislation is passed to address the program’s financial difficulties.
On August 14, 1935, President Franklin Delano Roosevelt signed the legislation creating Social Security.
