From CNBC:
Sen. Mitt Romney, R-Utah, is taking the lead on a new proposal aimed at fixing funding shortfalls for Social Security, Medicare and the nation’s crumbling highways. ...
Romney, together with a group of senators from both sides of the aisle, introduced a bill this week to look at government trust funds that are expected to be depleted in the next 13 years.
The affected trusts are the Social Security Old-Age and Survivors Insurance, Social Security Disability Insurance, Medicare Hospital Insurance and Highway Trust Fund. ...
The Romney-led proposal, called the Time to Rescue United States’ Trusts, or TRUST, Act, would create congressional committees to evaluate how to bolster solvency or make other changes to improve the programs.
It is supported by Sens. Doug Jones, D-Ala.; Joe Manchin, D-W.Va.; Kyrsten Sinema, D-Ariz.; and Todd Young, R-Ind.
Companion legislation has also been introduced in the House by Reps. Ed Case, D-Hawaii; Mike Gallagher, R-Wis.; Ben McAdams, D-Utah; and William Timmons, R-S.C. ...
Once the TRUST Act is passed, Treasury would have 30 days to deliver a report to Congress on the status of the funds.
Congressional leaders would form a rescue committee for each trust fund. Those committees would be tasked with coming up with legislation to repair those funds’ solvency and identify other improvements the programs may need.
At least two members of each party would be required to work on the legislation.
The proposal also says that any qualifying bills that emerge from the process get expedited consideration in both the House and Senate. ...
This bill, of course, is going nowhere in this Congress. Even if passed, it solves nothing. It would merely provide a process by which the problem could be solved if there was some consensus, which there isn't. If this bill has a meaning, it's that it's a sign that there are at least three Senate Democrats, Jones, Manchin and Sinema, who aren't interested in the Social Security 2100 Act pending in the House of Representatives that would solve Social Security's long term financial problems with tax increases. It's hard to imagine Social Security 2100 passing in the Senate even after the 2020 election without those Senate Democrats on board. Romney's bill makes it look like you're doing something even when you're furiously backpedaling away from doing anything.
Meanwhile, according to white house staff, our Commander in Chief, in his "unmatched wisdom," is working on a proposal to pass additional tax cuts, including cuts to payroll deductions. On the upside, I guess our children will be able to afford TWO Costco memberships while slaving away 20 extra years to compensate for Social Security's bankruptcy and the increased tax burden they'll face due to the record-setting deficit he's creating.
ReplyDeleteThe solutions to long term SS financing have been known and obvious for years. SS 2100 does this with very modest increases in benefits. There are other proposals that include a varied mix of changes including simply removing the earnings cap on FICA earnings subject to tax, raising the retirement age slowly even with adjustments in the formula to minimize damage to low earners, etc.
ReplyDeleteBut, all the alternatives have been scored and discussed for years. There is even a tool to show how each proposal impacts solvency.
Bottom line is that most Republicans and some Democrats want to cut benefits but don't want to be blamed for it. So, propose a committee and then say that's progress. It's not.
If you raise the retirement age, aren't you essentially cutting benefits?
ReplyDeleteFor decades conservative think tanks have struggled to determine how to pick the public's retirement pocket without the voters catching and convicting them in the court of public opinion. Therefore, a Committee is proposed to study the problem.
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