Trump is taking aim at Social Security

by Buddy Robinson

 

 

Trump is taking aim at Social Security

You wouldn't know it from watching the news, but Social Security's future is on

the ballot. If President Trump is re-elected, it's clear that he will try to greatly

weaken and even eliminate Social Security. That's despite his repeated – but

hollow – claims to protect it.

This should not come as a surprise. When he first ran for president, in 2000, he

said he wanted to privatize Social Security, calling it a “Ponzi scheme.”

 

Hewanted to eliminate  guaranteed benefits, and have people gamble on the stock

market instead. He also promoted raising the age of full benefits up to 70.

After starting to serve as President in 2017, his budget proposals each year

have sought large cuts in funding for Social Security disability. His latest one,

for fiscal year 2021, seeks $75 billion in cuts for recipients of Social Security

Disability (over half of whom are age 55 +), over ten years.

 

This includes $10 billion in benefit cuts, plus plans to reduce the number of people enrolled by about 5 per cent. That would be accomplished with harsher work rules that

determine who can qualify. Another cut is to lower the initial retroactive benefit

that people get when they first go on Social Security Disability. It currently is 12

months retroactive, but Trump wants to reduce it to six months.

His budgets have also included cuts for Social Security's administrative

expenses. That translates into fewer offices, shorter hours, fewer staff, and

longer times to process applications to get on Social Security, or even to get

answers to simple questions.

Don't be fooled by Trump's focus on Social Security just for the disabled.

People on regular retirement Social Security better worry, too. His 2021 budget

proposal talks about a need to “reduce the rate of increase” in Social Security

payments. That sounds like code words to reduce the annual Cost Of Living

Adjustment; increase the age to start getting benefits; reduce the initial benefit

formula – or maybe all of the above.

When you think about the COVID-19 pandemic and its economic effect on

families and workers, the importance of Social Security becomes all the more

apparent. The recession that accompanies our pandemic in the US, (worsened

by Trump's botched response) will be depressing future Social Security benefits

for an estimated 4 million Americans who become eligible in 2022, because of

the severe drop in average wages nationally. According to a study by the Center

for American Progress, their benefits will be about $1,428 per year lower than if

the pandemic never happened.

Trump has done something with Social Security in light of the pandemic: He is

allowing businesses to forego collecting Social Security payroll taxes for their

employees, for September through December. After that, those missing taxes

would have to be collected and paid. Not surprisingly, few businesses are

choosing to follow this option. To get a four month vacation from the payroll

taxes, only to have to then pay them back, doesn't make any sense.

Trump has said something else, which is extremely alarming: If re-elected, he

will consider doing away with the payroll tax altogether. If that were to occur,

and no other revenue source found to replace it, then we already know the

result. Social Security's Chief Actuary has testified that if this happens, all

Social Security Disability benefits will cease in mid 2021, and all Social Security

Retirement benefits will cease in mid 2023.

What was he thinking? Despite his coyness, we can see what Trump really

wants: His long-held dream of destroying the current Social Security system,

and turn it into a privatized gamble. Andrew Biggs, who helped write President

George W. Bush's ill-fated privatization proposal, explained recently that

Trump's ideas can lead to changing Social Security into two parts: A small,

income-tax funded benefit for only the poorest, and private investment accounts

for everyone else.

So, Trump really looks at the pandemic as a way to further his goal of wrecking

and privatizing Social Security. We all need to be seriously concerned, and vote

accordingly this November.

 

(Author Buddy Robinson is the former Staff Director of MN Citizens Federation NE.)

has worked for several years with MN AFL-CIO Retirees

2019 BY THE MINNESOTA RETIREE COUNCIL, AFL-CIO   

651-227-7647

1-800-652-9004

175 Aurora Ave, St Paul, MN 55103

retirees@mnaflcio.org

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