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Top House Republican Unveils Plan To Gut Social Security
Rep. Sam Johnson (R-Texas), chairman of the House Ways and Means Committee’s Subcommittee on Social Security, released a plan Thursday to reform Social Security that would drastically reduce benefits. The bill would make the program less of a universal earned benefit and more of a means-tested safety net that aims only to provide basic support to the poorest retirees and disabled workers.
In order to close Social Security’s long-term funding gap, Johnson would make Social Security’s benefit formula less generous for all but the lowest earners, rapidly raise the retirement age and reduce the annual cost-of-living adjustment, among other changes designed to save money.
Johnson also proposes changes that would cost the program money, like an increased minimum benefit for the poorest retirees ― provided they have a long history of covered employment ― and the elimination of income taxes on Social Security.
Under Johnson’s plan, a middle-class 65-year-old claiming benefits in 2030 ― one with average annual earnings of about $49,000 over 30 years of covered employment ― would experience a 17 percent benefit cut relative to what the program currently promises them, according to the Social Security Administration’s chief actuary. A 65-year-old with the same earnings history claiming benefits in 2050 would experience a 28 percent benefit cut compared to current law.
In order to close Social Security’s long-term funding gap, Johnson would make Social Security’s benefit formula less generous for all but the lowest earners, rapidly raise the retirement age and reduce the annual cost-of-living adjustment, among other changes designed to save money.
Johnson also proposes changes that would cost the program money, like an increased minimum benefit for the poorest retirees ― provided they have a long history of covered employment ― and the elimination of income taxes on Social Security.
Under Johnson’s plan, a middle-class 65-year-old claiming benefits in 2030 ― one with average annual earnings of about $49,000 over 30 years of covered employment ― would experience a 17 percent benefit cut relative to what the program currently promises them, according to the Social Security Administration’s chief actuary. A 65-year-old with the same earnings history claiming benefits in 2050 would experience a 28 percent benefit cut compared to current law.
http://www.huffingtonpost.com/entry/top-house-republican-social-security-cuts_us_584b1bb8e4b0e05aded3ff3c
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