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Papolitics@Googlegroups.,
Yesterday, I had the honor of testifying before the Senate subcommittee on Social Security. I was the Democratic witness, there at the invitation of Ranking Member Bernie Sanders. And I want to tell you what I told the Senate.
Read my testimony below, then make a donation to make sure that the wealthy pay their fair share into our Social Security system!
Social Security was enacted to provide basic economic security when wages are lost in the event of disability, death, or old age. Therefore, the first question we should ask is what level of benefits should Social Security provide.
Today’s benefits are low by virtually any measure. Cutting those already inadequate benefits will deepen the nation’s looming retirement income crisis. And cutting benefits will hurt the economy.
By the same token, expanding Social Security’s modest benefits will increase economic security and strengthen the economy.
That leaves the question of how the expanded benefits are financed and the shortfall eliminated.
It is imperative to recognize that, after Congress enacted the Social Security Amendments of 1983, the subsequent Trustees Report projected that Social Security was funded for the full 75-year valuation period and beyond, which ran through 2058.
But the actuaries didn’t anticipate the huge income and wealth inequality that followed the 1983 amendments.
Recent decades have seen a dramatic increase in the share of income going to those at the top. That inequality has cost Social Security more than $1.5 trillion since 1983. That is $1.5 trillion that should have gone to Social Security but instead stayed in the pockets of the wealthiest among us.
This year’s trustees report has projected that Congress must act by 2032. That is one year sooner than last year’s report projected. The earlier date is the result of Trump administration policies, specifically, its first reconciliation bill giving tax breaks to the wealthiest and its hostility to immigrants, who every year contribute tens of billions more dollars to Social Security than they draw out. Moreover, the administration’s tariffs and its war of choice against Iran will undoubtedly increase unemployment and inflation, harming Social Security even more.
The 2032 date is best understood as an action-forcing event. The question isn’t whether Congress will act, but rather what it does and whether that action will come transparently, through regular order, or through an undemocratic closed-door, fast-tracked process.
Two pieces of good news. First, there is no question we can afford an expanded Social Security, whose total cost at the end of the century is less than 7 percent of GDP.
The second piece of good news is that, as polarized as the American people are, we are united about Social Security.
Poll after poll reports that from MAGA Republicans to progressive Democrats, the American people overwhelmingly reject benefit cuts even if paired with some revenue increases. To be clear, raising the retirement age and means-testing benefits are benefit cuts.
The American people strongly and overwhelmingly prefer more revenue, ideally paid by the wealthiest Americans. They also strongly support benefit increases.
This is also the best policy.
What should not happen is the establishment of a commission whose recommendations are privileged and fast-tracked. That would be unprecedented and a deep disservice to the American people.
Such a commission’s only purpose would be to insulate and protect members of Congress from facing political accountability. Instead, all Social Security legislation should go through regular order, as it always has.
Thank you.
Papolitics@Googlegroups., there are no shortage of solutions that would address Social Security’s shortfall, while increasing benefits. Senator Bernie Sanders’s Social Security Expansion Act lifts the cap, makes the wealthy pay more, and increases benefits for seniors. So does Rep. John Larson’s Social Security 2100 Act.
The bottom line is: The wealthy are not paying their fair share. And as they capture more and more of our country’s income, our Social Security system pays the price. It’s time to change that. It’s time to scrap the cap and expand Social Security!
Make a donation to Social Security Works today!
Thank you,
Nancy Altman
Social Security Works
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