Social Security Cuts

Social Security cuts come in many forms.  If you’ve ever called Social Security (800-772-1213) and had to wait an hour to talk to someone, you have been affected by cuts to the Social Security operating budget.

It looks like more Social Security cuts are coming as Republicans plan to slash $400 million from the Social Security Administration budget.

The National Committee to Preserve Social Security says the Social Security Administration budget has decreased 16% since 2010.

During the same period, the number of people on Social Security has gone up 14% while 60 field offices have been closed across the country.

Social Security cuts  are coming.

Social Security’s tax revenue and reserves will provide enough cash to pay out full benefits until 2033. After that, the Social Security trust fund will be empty and payroll taxes will only bring in enough to pay for 77 percent of money that should be paid out to retirees.

Republicans are pushing for a “fast track” fix that will reduce benefits and raise the age to collect Social Security.

The simplest way to avoid Social Security cuts:

Raise the income cap for Social Security taxes. Currently the cap is $128,400, which means a person does not pay Social Security tax on wages or earning above that amount.  About 6% of Americans would end up paying more Social Security taxes if this change were to be made.  But it would fund Social Security well beyond 2033.

Of course, with politicians in Washington unable and unwilling to work together for the other 96%, a Social Security fix is unlikely.

 

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