Republicans begin a legislative assault on Social Security
With the dust just settling from the heated presidential election, the GOP took over the White House and maintained control of both chambers of Congress. With almost 40 days left before Obama leaves office, an emboldened GOP is calling for the repeal of Obamacare and the privatization of Medicare. That said, fixing Social Security is on their short list of domestic policies to address.
Last Thursday, the long-anticipated political skirmish over how to reform and ensure the fiscal solvency of Social Security began with Ways and Means Social Security Subcommittee Chairman Sam Johnson introducing legislation to drastically overhaul the nation’s most popular social insurance program.
In the Eyes of the Beholder
“For years I’ve talked about the need to fix Social Security so that our children and grandchildren can count on it to be there for them just like it’s there for today’s seniors and individuals with disabilities,” Johnson said in his statement introducing H.R. 6439, the Social Security Reform Act of 2016. “My common sense plan is the start of a fact-based conversation about how we do just that. I urge my colleagues to also put pen to paper and offer their ideas about how they would save Social Security for generations to come.”
Johnson’s legislative proposal seeks to overhaul the nation’s Social Security program by increasing the retirement age from 67 to 69, this change impacting people born in 1968, who will begin retiring in the mid-2030s. The basic Social Security benefit formula would also become less generous for beneficiaries ...except for the poorest beneficiaries. The annual cost-of-living adjustment (COLA), using a Chained-Weighted CPI, would put the brakes on generous COLA increases. COLA’s would be cut for those earning over $85,000.
Circling the Wagons to Protect Social Security
Democratic leader Nancy Pelosi came out swinging in a statement after Johnson threw his bill into the legislative hopper, charging that it 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 (House) Speaker (Paul) 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,” Pelosi said.
She also warned, “although current retirees and those close to retirement will receive their Social Security benefits, changes are looming with a Trump administration and a Republican-controlled Congress. For younger generations, all benefit cut options are expected to be put on the table.”
Rhode Island Congressman David Cicilline calls Johnson’s legislative proposal a “travesty,” warning that it would “destroy Social Security as we know it by slashing the critical benefits that millions of seniors rely on to live their retirement years with dignity.”
According to Cicilline, the last time Republicans tried to eliminate Social Security, during the administration of President George W. Bush, the American people were outraged and rejected it.
“I am confident that this proposal will meet a similar fate, and I am committed to leading the fight to ensure that we are protecting Social Security for seniors as well as future generations,” he said.
Max Richtman, President and CEO of the Washington-based National Committee to Preserve Social Security and Medicare, views Johnson’s Social Security legislation introduced as the 114th Congress is wrapping up, “the first salvo in the ‘War on the Working Class.’”
Rep. Johnson will no doubt reintroduce his bill in the next Congress, he predicts.
According to Richtman, Johnson’s legislative proposal cuts Social Security benefits by one third while raising the retirement age from 67 to 69. It seeks to control costs by changing the benefit-computation formula in a way that cuts benefit amounts. Finally, it cuts COLAs, too.
Richtman charges that this Social Security reform proposal would “irreparably harm the nearly 60 million Americans who currently depend on Social Security as well as future beneficiaries.”
“President-elect Trump will have a veto pen. Now is the time for Mr. Trump to reaffirm his campaign promise “not to touch” Social Security and Medicare. So far, he has been uncharacteristically silent on this vital issue. I promise that we will hold him accountable,” says Richtman.
“No one voted for massive cuts to Social Security, nor to end the program as we know it,” says Nancy Altman, founding co-director of Social Security Works, in a response to Johnson’s proposal. “The Johnson plan would gradually but inexorably turn Social Security from a program that replaces wages to one that produces essentially one flat benefit, independent of how much a worker contributed,” she says.
“With Republicans in full control of the federal government, these cuts have a real chance of being passed into law. Trump needs to immediately reassure the American people that he will keep his campaign promise and veto this awful bill. He should tweet that immediately,” adds Altman.
The presidential debates and the platforms of the GOP and Democratic party revealed a stark difference as to how each party will fix the ailing Social Security program. Now is not the time to put Social Security on the chopping block. Congress must come together to hammer out bipartisan approaches to both strengthen and expand the program to ensure its fiscal solvency for the next 100 years.