"Monstrous": Trump is Considering Direct Payments in Exchange for Cuts to Social Security Benefits

[CousinIT]

https://www.commondreams.org/news/2020/05/11/trump-administrations-monstrous-idea-direct-payments-exchange-cuts-social-security

Suddenly concerned about the growing national debt now that corporations have secured access to trillions of dollars in Covid-19 bailout funds with little oversight, Trump administration officials are reportedly considering several proposals purportedly aimed at reducing government spending—including a pair of plans that would provide Americans with cash payments in exchange for delays or cuts to their Social Security benefits.

"Social Security is an earned insurance benefit. It is not a piggy bank. This plan, and any plan that raids Social Security, is a moral abomination."
—Alex Lawson, Social Security Works

In addition to weighing a push for automatic federal spending cuts that would take effect once the economy rebounds from the coronavirus crisis, Washington Post reported Sunday that top White House economic officials are "exploring a proposal floated by two conservative scholars that would allow Americans to choose to receive checks of up to $5,000 in exchange for a delay of their Social Security benefits."

Senior administration officials have also "discussed the 'Eagle Plan,' a 29-page memo that called for an overhaul of federal retirement programs in exchange for upfront payments to some workers," according to the Post. "The proposal calls for giving Americans $10,000 upfront in exchange for curbing their federal retirement benefits, such as Social Security."

The "Eagle Plan" was crafted by a State Department official close to President Donald Trump's son-in-law and senior adviser Jared Kushner, who forwarded the proposal to the White House Council of Economic Advisers. Art Laffer, a conservative economist and Trump adviser, told the Post that he supports the proposal.

Link to tweet

The Trump plan is not only designed to eliminate Social Security, it is also designed to eliminate Federal Retirement for Federal Employees and Military Members! Trump is determined to destroy anything that helps Working Americans, to include eliminating Medicare, Medicaid & ACA!

[Newest Reality]

1. Misnomer!

That's..ahem.. more aptly what should be called the, Vulture Plan and it is very much in step with vulture capitalism in the wake of the disaster capitalism already in progress.

[edhopper]

2. Fortunately

he can't do anything without the House. And this is DOA.

[bluestarone]

4. And THIS is our savior!!!

[aggiesal]

34. He'll issue another executive A$$ order ...

Then say, "Stop me."

He's a Covidiot!

[totodeinhere]

46. Of course he knows that this will not pass the House. But that's not the point.

During the fall campaign he would be able to say that the Democrats in the House blocked payments to Americans. Of course the House would have good reason for blocking it, but a lot of stupid voters will not get that far. All they will hear is that it's the Democrats' fault.

[ancianita]

53. And Democrats will counterattack that he was trying to make a move on Social Security.

That is point that will stick with people and piss them off about Trump.

They should get out in front of this move right now, have a press conference to show media and the country what he is now trying to do to make a grab at Social Security. He said the word first. He's using it for leverage in his so-called 'help' to Americans. He's trying to grab this safety net.

That's the message they'll hear and remember.

Now. Before any of his rallies start.

[spanone]

3. NO.

[roamer65]

5. The House will block it.

DOA.

[SergeStorms]

40. Trump doesn't recognize....

the House of Representatives as part of the government, let alone a co-equal part of the government. We already have a fascist dictator in the United States. We don't have to wait any longer. I'm convinced republicans are not going to relinquish power, even if an honest and fair election were to take place. They have the country the way they want it now, do you honestly think they're going to allow everything they've done to be undone? I can't see it happening, and it makes me physically ill.

[roamer65]

56. If they don't relinquish power, then you can take secession to the bank.

CA, NY and New England will go first.

[dalton99a]

6. Kick

[stillcool]

7. well jeeze..it took long enough

is there anything left on the 'to-do' list after they kill social security?

[Disaffected]

8. There is nothing inherantly wrong

with offering a cash payout, in full or in part, in return for reduced future payments from Social Security or any other pension type of plan. The crux of the matter lies in how much the payment is compared to the value of the plan (and any other terms & conditions the guv may try to throw in).

OTOH, making it mandatory along with some crappy payout amount would be quite another matter...

[progree]

10. I think one of the strengths of Social Security is that people can't borrow from their future

benefits. Otherwise, human nature being what it is, too many people would be doing that and leaving themselves way short in old age. Unless there is some kind of cap on the amount that can be borrowed that keeps this problem from getting too far out of hand.

Though there is an exception: for many many years, we've had a choice to take SS benefits starting at age 62 (or age 63, or age 64... etc.) for a reduction in the monthly benefit amount. The monthly benefit amount is reduced by about 8% per year that you start taking benefits before your "full retirement age" (traditionally age 65, but it's now 66 years 2 months) . On the other end, one can delay taking Social Security beyond their full retirement age, up to age 70, and gain a 8% per year of delay higher monthly benefit amount.

Details: https://www.ssa.gov/planners/retire/retirechart.html

But while the ones taking early retirement are costing themselves in the size of the monthly benefit amount, at least it's not a lump sum. A large lump sum amount might be more irresistable than a stream of monthly income starting early. And it is being saved for old age, just starting at a maximum of 4 or 5 years early.

[Disaffected]

16. Yes, good point, it could turn out badly

depending on how well the lump sum is managed - blowing it all on fast women and casinos instead of investing & prudent spending will have undesirable consequences. Not saying it's a good idea - just that it's not altogether bad.

[lostnfound]

11. That's a transactional view, not strategic.

First off, I don’t pay social security tax to ensure that “I” have retirement money. I pay it so that I don’t live in a society with starving old beggars on every street corner.

Thinking of our fellow humans has fallen out of fashion, but a more civilized or advanced culture would value it in this way.

Second, if every crisis gets solved by an offset from social security, it will get destroyed in a heartbeat. Hurricane damage? Sign this. Need maternity leave? Here you go, sign here.

Turn 67, your health making it hard to work, and you want to retire? Too bad.

Strategically, the GOP dreams of destroying this program and this is a way to chip away at it.

[whathehell]

47. That's nice, but necessity forces most of us

to look after ourselves first.

[erronis]

26. SS benefits can be taxed - lump sum especially. Takes you above a threshold.

Some states tax SS as if it is regular salaried income.

Many people need additional income to survive above their SS payments. Lumped together these can cause a dramatic increase in federal and state tax payments due.

Give someone a lump sum of say 20xmonthly payment and they'll find a tax bill of 10-30% that they didn't see before.

[dragonfly301]

9. Natasha Sarin

Sarin, economic advisor to Biden campaign and Larry Summers protegee tweeted this
https://mobile.twitter.com/NatashaRSarin/status/1257671997691236352

This is not a winning strategy.

[DeminPennswoods]

17. Hasn't Wharton already lost whatever prestige

it once had? It is like after GW Bush, I no longer respected a Harvard MBA.

[bucolic_frolic]

19. The Conservative Crackpots these Ivy League schools are cranking out thanks to

the Conservative Crackpots on their faculty is outrageous. They are only there to feed the richest Americans.

[dragonfly301]

22. I totally agree

I want them far away from the Biden campaign.

[Baclava]

12. He must be removed from office IMMEDIATELY! Why isnt everyone clamoring for this?

[Celerity]

30. how?

[Baclava]

36. Force him to resign. During Watergate, some 30 newspapers demanded Nixon to step down.

Nixon resigned in August.

Turn up the heat! Make it clear he will NEVER be reelected and make the rest of his term as painful as possible from everyone in Congress while showcasing his incompetence.

[Caliman73]

39. That won't work in the age of Trump.

Today is a different day in terms of media. Even if the major media outlets call for a resignation, there is an entire media ecosystem on the right that would just counter with, "The liberal media is totally on a witch hunt" and it would be just another left v right thing.

You have to understand the difference between media in Nixon's time and media today. The major legacy papers NYT, WaPost, Tribune papers, Wall St. Journal, and the major broadcasters, NBC, CBS, and ABC, plus the fledgling PBS were it. There were some right wing papers or magazines and some left wing outlets but both were basically ignored.

Ideas were spun, but the facts reported to almost every American who sought out news, was basically the same.

Now, you have 40% to 50% of the population getting information that is completely detached from reality. The right wing media ecosystem keeps a large chunk of the population thinking that Trump is a heroic figure that the media and evil liberals are trying to ruin.

[Celerity]

42. We are no longer in 1974, the Republicans are hyper-partisan, see a kill shot, and will let Rump

take it. They can smell the wafting stench of a flat out dictatorship coming into view on their event horizon. It makes their tiny todgers hard, it has them in a frenzy of rapaciousness, and they will kill and crush and block and imprison as many as they perceive to be needed in their attempts to grab that most odious of brass rings. Barr is 100% out of control. I can easily see him trying to criminally indict Obama before the election. Hell, they may go for Biden too I put NOTHING past them in terms of possibilities.


History doesn't repeat, but it often rhymes..................

[whathehell]

49. Nixon resigned rather than face impeachment..

As we all know, that didn't work with Trump.

[Baclava]

51. Still time to try again, try the mental incompetence angle, get a Dr to declare him deranged

Plenty of evidence for that!

[whathehell]

58. Agree completely..

The problem is getting Pence & the other Repuke honchos to do it.

[SheltieLover]

13. No!

Just. No!

[Bayard]

14. This reminds me of the ads on TV

The ads pushing companies paying you some small sum immediately, if you sign over all your future payments from a court settlement to them. "Its my money and I want it now!"

[Baclava]

57. Yes, the govt wants in on the easy credit loansharking business

[Vinca]

15. One way or another they want to kill grandma.

[Runningdawg]

18. I think he should announce on twitter that all SS payments will be cut in half effective immediatly.

Let's see how the cult reacts.

[Haggis for Breakfast]

20. OVER MY ROTTING CORPSE WILL HE GET HIS GREEDY LITTLE

VULGARIAN FINGERS ON MY MILITARY BENEFITS.

WE, WHO HAVE SERVED THIS NATION, EARNED THIS. IT IS NOT A HAND-OUT. IT IS NOT A PRIVILEGE. IT IS NOT SOMETHING THAT CAN, OR SHOULD EVER BE, BARTERED WITH IN ANY WAY, BY THIS ADMINISTRATION OR ANY OTHER.

AND IT IS ABSOLUTELY NOTHING THAT I WILL TOLERATE BEING MANIPULATED, DELAYED OR DEFERRED, IN ANY WAY, FROM THAT CHICKENSHIT COWARD COCKSUCKER IN THE WH.

[Codifer]

32. THIS!!!!

I totally agree.

This illegitimate administration of treasonous assholes has already crushed our spirit by the destruction of our nation and now want to make our demise and death complete.

FUCK THAT!!!

[Haggis for Breakfast]

35. SEMPER FORTIS !!

[lonely bird]

21. 10 Grand?

That is not even 1/3 of a year for me when I finally retire. Shit, bad math. It is about a third of a year. What would getting 10K now do to me three years from now?

Fuck Trump. Raise taxes on the wealthy, you orange pile of shit.

[Sloumeau]

23. This is insane. nt

[SammyWinstonJack]

24. FUCK OFF tRump!

[Jarqui]

25. Fight fire with fire

This is Trump's 'death panel' moment

Tell the elderly it is a trick. Trump is coming for their Social Security.
Hammer it home relentlessly.
That is his best demographic.
Couple that with what he and the GOP have allowed in terms of risking and killing the elderly in their rush to revive the economy.
Then see what his polls and the polls of the GOP Senators look like ...

It's high time to take off the gloves, give them a dose of their own medicine and beat the snot out of these heartless pricks.

[zentrum]

29. This

[VOX]

44. Amen! Pull out ALL the stops.

The time for “being nice” is long over.

[zentrum]

27. Joe and Nancy better

...scream this to the rafters. Seeing as how our MSM will report it for day and move on to the next sensation.

This information spread and far and wide would turn out the vote for Democrats massively. But it has to be said louder than the Repugs will scream about their guns or the deficit or whatever.

[ffr]

28. Wait a cotton picking minute! The GOP isn't cutting SS, they are RAIDING it!

That's money we've paid into, you and me. Them cutting it, is just another way for the GOP to use that money as they see fit.

They are robbers, thieves, grifters. You vote for a republican, you vote to have them stab you in the back.

[bobbieinok]

31. Wasn't SocSec put in place b/c grammas, grampas were starving to death in Depression?

[aggiesal]

33. Could I be able to send the money back to forego ...

any delay in planned benefits?
Because that's what I'm going to do.

[The Mouth]

37. I'm trying to find the actual specfics.

At work and swamped, can someone point me to the actual proposals?

Thanks!

[bottomofthehill]

38. I would love to see a copy of the Eagle Plan.

Hopefully it will come out like the CDC plans to open the economy that were never to see the light of day.

[keithbvadu2]

41. Short term money for long term loss.

Short term money for long term loss.

[Person of Interest]

43. This will be as "popular" as attempts to privatize Social Security.

[abakan]

45. It looks like I'm screwed.

I am a retired federal employee on social security. This will remove all my income.
The question is can the next president (not trump) undo all the damage? If not I might
as well go out get sick and die before I am reduced to begging.

[VOX]

48. Any "plan" that stops current workers from paying into the fund will kill it for everyone.

It’s really a group insurance plan. We all chip in so some can have it in the present, knowing that when our time comes, it’ll be there for us.

Eliminating any payroll Social Security withholdings is tantamount to turning off the source and shutting it down.

“Eagle Plan” my ass.

[CousinIT]

54. His plan (another one) was to stop current employers from paying into it....that's a 50% cut.

That, combined with this Vulture Plan, will essentially kill Social Security.

Social security is paid by employees and employers - if Trump wants a "tax holiday" for employers, that's a CUT to social security and you can bet your sweet bippy Republicans will want to make that "holiday" permanent. I wasn't concerned when Obama did this because Democrats would likely not make such a cut permanent - they are after all the party that created Social Security and Medicare. But Republicans would make it peermanent. In a heartbeat.

[Maru Kitteh]

50. Is Prince Jared practicing for his fucking dance rehearsal in the background there?

Do that shit at home kid. Nobody wants to see you.

[paleotn]

52. Well....lets just reach down and grab that ole 3rd rail of US politics.....

and see what happens.

Rethugs have such short memories. They should ask W what happens when you muck with Social Security. Burned up all his "political capital" for nothing. Hate that.

https://www.theatlantic.com/magazine/archive/2005/05/what-political-capital/304028/

[Yo_Mama_Been_Loggin]

55. Dead on arrival dotard

[sarcasmo]

59. Trump's version of a Payday Loan.