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Re: TRUMP TO DISMANTLE SOCIAL SECURITY
Michael Hiltzik, in the L.A. Times has a good understanding of Trump's and the Republican's aims for Social Security...
“This proposal, (eliminating the payroll tax,) is a Trojan horse,” the veteran Social Security advocate Nancy J. Altman told me. “It appears to be a gift in the form of middle-class tax relief, but would, if enacted, lead to the destruction of working Americans' fundamental economic security.”
Re: TRUMP TO DISMANTLE SOCIAL SECURITY
15 steps to reduce the Social Security Insurance payments to Seniors.
1. For retired worker and disabled worker beneficiaries becoming initially eligible in January 2023 or later, phase in a new benefit formula (from 2023 to 2032). Replace the existing two PIA bend points with three new bend points and modified benefit formula factors.
2) Use an annualized “mini-PIA” formula beginning with retired and disabled worker beneficiaries becoming newly eligible in 2023, phased in over 10 years. The mini-PIA calculation would use a single year’s average monthly indexed earnings (mini-AIME) and primary insurance amount (mini-PIA) for each year with taxable earnings.
3) Replace the current-law Windfall Elimination Provision (WEP) with a new calculation for most OASI and DI benefits based on covered and non-covered earnings, phased in for beneficiaries becoming newly eligible in 2023 through 2032.
4) After the normal retirement age (NRA) reaches 67 for those attaining age 62 in 2022, increase the NRA by 3 months per year starting for those attaining age 62 in 2023 until it reaches 69 for those attaining age 62 in 2030. Increase the age up to which delayed retirement credits may be earned from 70 to 72 on the same schedule.
5) Beginning with the December 2018 COLA, provide no COLA for those with modified adjusted gross income (MAGI) above specific thresholds and compute the COLA using the chain-weighted version of the CPI-U (C-CPI-U) for all other beneficiaries.
6) For spouses and children of retired workers and disabled workers becoming newly eligible beginning in 2023 and phased in for 2023 through 2032, limit their auxiliary benefit to the amount based on one-half of the PIA of a hypothetical worker with earnings equal to the national average wage index (AWI) each year up to his or her eligibility year, and who has the same eligibility year as the worker.
7) Beginning in January 2019, require full time school enrollment as a condition of eligibility for child benefits at age 15 up to 18.
😎 Provide a new minimum benefit for workers with more than 10 years of covered earnings above a specified level, phased in for retired and disabled worker beneficiaries becoming newly eligible in 2023 through 2032.
9) Beginning in January 2019, eliminate the retirement earnings test for all beneficiaries under NRA.
10) Eliminate federal income taxation of OASDI benefits that is credited to the OASI and DI Trust Funds for 2054 and later, phased in from 2045 to 2053.
11) Provide an option to split the 8-percent delayed retirement credit (DRC) to offer a lump sum benefit at initial entitlement equivalent to 2 of the 8 percent DRC earned, and a 6 percent DRC on subsequent monthly benefits, effective for workers attaining age 62 in 2023 and later.
12) Beginning in January 2023, provide an addition to monthly benefits for all beneficiaries who have been eligible for at least 20 years. The additional amount is calculated based on 5 percent of the PIA for a hypothetical worker with earnings equal to the national average wage index each year.
13) Beginning in January 2023, for new and current disabled widow(er) beneficiaries, change the requirement that disability must occur no later than 7 years after the worker’s death, or after surviving spouse with child-in-care benefits were last payable, to no later than 10 years.
14) Beginning in January 2023, for new and current disabled surviving spouse beneficiaries, eliminate the requirement to be age 50 or older for receipt of benefits.
15) Beginning in January 2023, for new and current beneficiaries, waive the two-year duration of divorce requirement for divorced spouse benefit eligibility in cases where the worker (former spouse) remarries someone other than the claimant before the two-year period has elapsed.
TRUMP TO DISMANTLE SOCIAL SECURITY
Last month, Donald Trump and Paul Ryan attempted to gut Medicare and Medicaid to give $1 trillion in tax breaks to the wealthy. Thanks to your resistance, that effort went down in flames. Now, rather than learning their lesson, Trump and Ryan are pivoting to an attempt to destroy Social Security to give tax breaks to the wealthy.
This plan is much more insidious than Trumpcare. The Associated Press reports that as part of Trump’s tax reform proposal, they are considering eliminating the FICA contributions that fund Social Security. Because only the first $127,200 of wages are taxed, Trump’s team are calling this a middle class tax cut. But destroying Social Security’s funding will hurt the very people Trump purports to help.
Sign the petition demanding that Donald Trump doesn’t raid Social Security’s dedicated funding stream to cut taxes for his wealthy friends.
It was reported over the weekend that a GOP lobbyist close to Trump is promoting the plan to completely eliminate Social Security payroll contributions without a firm plan to replace Social Security’s funding source.
Eliminating the payroll tax contributions is dangerous―Social Security has maintained its universal popularity over the past 81 years because everyone pays in, and everyone benefits. This dedicated funding stream also insulates Social Security from the annual appropriations process that Republicans use to squeeze other programs designed to help the middle class.
For decades, Republicans in Washington and Wall Street bankers have told us that Social Security is going broke―even though Social Security has a $2.8 trillion surplus and can pay out 100% of benefits for the next 17 years and over 75% of benefits owed after that.
But Republicans’ tax plans might be a self-fulfilling prophecy. By starving Social Security of its funding, they could finally receive their wish―replacing Social Security’s guaranteed benefit with unstable Wall Street retirement plans.
Demand Donald Trump and Republicans in Washington abandon their attempts to destroy Social Security. Sign the petition to protect Social Security’s funding today!
Together we must stay vigilant in our fight to protect and expand Social Security for current and future generations.
Social Security Works
Clinical Psychologists Barry Jacobs and Julie Mayer will answer your questions on how to cope with the major life change, anxiety, and sadness we are all facing these days. Ask a question now and tune in live on May 27, 3-5 p.m. ET.