When President Joe Biden finally declares that he is running in 2024, he will put Social Security protections and Medicare at the heart of his manifesto for a second term.
“I know a lot of Republicans on the Hill have dreams of cutting Social Security and Medicare,” he tweeted after following his attacks in last week’s State of the Union address.
“Well, let me say that. If this is your dream, I’m your nightmare.”
What he has left unspoken is a looming crisis. Money will run out a decade from now as costs continue to rise and revenues fall short, forcing cuts in payments.
The Congressional Budget Office (CBO) says Social Security’s cash reserves will be depleted by 2033 and, without reform, will be unable to pay full benefits.
President Joe Biden has been quick to criticize Republicans for proposing Social Security cuts, but he has shied away from detailing the looming funding crisis
In a recent forecast, the Congressional Budget Office said the gap between spending and revenue meant cash reserves would be depleted in a decade, forcing payments to be reduced to levels commensurate with incoming funds
And new figures on Wednesday showed the gap between social spending and tax revenues continues to widen, potentially helping to add another $20 trillion to the national debt.
Rachel Greszler, senior research fellow at the Heritage Foundation, said: “We’ve often heard Biden criticize any Republican who talks about digging into Social Security, whatever that is.
“But the reality is, not talking about Social Security, not coming up with a proposal, means you’re okay with 23 percent cuts in benefits for everyone — about 65 million Americans — starting in about 10 years if we don’t do anything.”
“And I think it’s disingenuous of him to criticize anyone who makes a proposal, but the reality is we don’t really know what it’s for anymore.”
Biden has vowed not to collect taxes on households earning less than $400,000, but said it’s difficult to reconcile this with enough revenue to keep Social Security paying.
The White House did not respond to a request for more details.
Maintaining the programs unabated has become an article of faith for Biden.
“They’re more than just government programs,” he told a Florida audience last week. “They are a promise — a promise we made: Work hard and contribute, and when the time comes to retire, you’ll be there… we’ll be there for you, to help you.”
“It was a sacred trust, the rock-solid guarantee that generations of Americans have relied on, and it works.”
Biden has criticized Republicans for planning to cut Social Security and Medicare last week during his State of the Union address on February 8, 2023 in Washington, DC
Georgia Republican Representative Marjorie Taylor Greene called the allegation a “liar.”
He returned to the issue on Wednesday, attacking Republicans’ plans at a union hall in suburban Maryland.
It was also the standout moment at State of the Union last week when he accused Republicans of wanting to wipe out Medicare and Social Security.
Conservative lawmakers took the bait and shouted “liars,” allowing him to celebrate their “conversion” to his cause.
But that still leaves a rising bill and how to pay for it.
The Congressional Budget Office has highlighted the problem with the steady-as-she-goes approach in its recent forecasts.
“In these projections, Social Security spending as a percentage of gross domestic product (GDP) will rise rapidly over the next decade as the large baby-boomer generation retires,” she concluded in a December analysis.
“This growth then slows as members of that generation die, but spending continues to increase over the 75-year projection horizon as life expectancy increases.”
President Joe Biden said his economic plan is working in a major standard speech on Wednesday afternoon, shortly after economists warned that the United States is on track to increase the national debt by nearly $19 trillion over the next decade
But tax revenues remain stable, it said. That means by 2033 cash reserves – in Social Security trust funds – will be exhausted and payments should match tax receipts. meaning cuts.
Influential Republicans have proposed changes to make both Medicare and Social Security more sustainable, such as: For example, raising the retirement age to reflect longer lifespans or spending cuts.
Democratic lawmakers put their own ideas into motion this week, with a bill they say will keep Social Security solvent for another 75 years.
It would remove the income cap on Social Security taxes, which they say would target the wealthiest in society while leaving 93 percent of households untouched.
They estimate that Tesla boss Elon Musk, for example, would pay an additional two billion dollars a year.
Democrats led by Bernie Sanders this week introduced legislation that would make the wealthiest pay to increase Social Security for the poorest in society
“At a time when nearly half of older Americans have no retirement savings and nearly 50 percent of our nation’s seniors are trying to survive on less than $25,000 a year, our job isn’t to cut Social Security.” , said Senator Bernie Sanders.
“Our job is to grow Social Security so every senior in America can retire with the dignity they deserve and every person with a disability can live with the security they need.”
That approach is more sincere than Biden’s, Greszler said with his explanation of how he would increase revenue.
But an honest discussion would also include debate about cutting some benefits or raising the retirement age, she added.
“The proposal I support would actually involve quite significant benefit cuts for higher-income earners and an increase in benefits for lower-income earners,” she said.
“But you know, anything that people say that has anything to do with, quote, cutting welfare, even if it’s reducing growth and welfare, it’s just demagogued by the left.