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Social Security Reform Could Test Trump, Democrats on Bipartisan Compromise
· Confirmed
In Short: Former President Biden opposes cuts to Social Security, while experts say bipartisan compromise is necessary to address the program's projected insolvency in 2032.
Former President Biden has pledged to oppose any cuts to Social Security, aiming to restore the underfunded system to solvency, according to the American Enterprise Institute (AEI).
Biden himself was directly involved with one bipartisan compromise that kept Social Security solvent for decades and another that failed to pass.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), told FOX Business that Social Security's insolvency in 2032 means each senator elected to a new six-year term will need to confront this issue before their term expires.
Implementing reforms sooner rather than waiting until it gets closer to the 2032 insolvency date would give policymakers a greater ability to slowly phase-in changes to the program and potentially address related issues affecting retirees.
Without a fix, benefits would need to be cut by 22 percent in 2032, according to projections from the Social Security Board of Trustees.
Congressional budget rules require that changes to Social Security be made subject to a 60-vote threshold in the Senate, which means that any reforms to the program would likely require bipartisan support.
Smucker of Pennsylvania, a top candidate to lead House Budget Committee Republicans in the next Congress, said raising the cap on income subject to Social Security payroll taxes could be part of the solution.
Since the vast majority of Americans make less than the cap, most people are paying Social Security taxes on 100 percent of their earnings while the highest earners are paying on only part of theirs.
Former President Trump could see legacy-building potential in addressing Social Security's insolvency, similar to how then-President Ronald Reagan and then-House Speaker Tip O'Neill did on a bipartisan basis in 1983.
A new law signed by President Donald Trump allows certain religious leaders who previously opted out of Social Security to reverse that decision, enabling them to once again qualify for benefits in retirement.
What this adds
Former President Biden opposes cuts to Social Security, while experts say bipartisan compromise is necessary to address the program's projected insolvency in 2032.
Newsweek and Fox Business both stress the importance of addressing the financial challenges facing Social Security, with Newsweek highlighting the impact on retirement security across various professions, and Fox Business noting the growing public awareness of the issue.
Rollcall emphasizes the need for a combination of changes, including raising the retirement age and the cap on income subject to Social Security payroll taxes, while Fox Business underscores the urgency of addressing the issue before it becomes a crisis.
Newsweek highlights the financial implications for older religious leaders, while Fox Business focuses on the broader context of Social Security's insolvency.
Background
Former President Biden opposes cuts to Social Security, while experts say bipartisan compromise is necessary to address the program's projected insolvency in 2032.
Former President Biden opposes cuts to Social Security, while experts say bipartisan compromise is necessary to address the program's projected insolvency in 2032.
What's confirmed
- This makes for good politics for Biden and congressional Democrats.
- Capretta ON 9 Jan 23 How Social Security's insolvency is addressed could alter how Americans view their benefits.
- Biden himself should know this — because hewas directly involved with one bipartisan compromise that kept Social Security solvent for decades and another that failed to pass.
What's still developing
- “While the legislation directly affects a relatively small number of the overall population and is unlikely to have a significant impact on Social Security's larger financial challenges, it addresses a long-term concern that individuals who dedicated decades to serving their communities could find themselves without enough retirement income,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.
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