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Home / Business / Major cuts in social security in 11 years?Maybe, if nothing is done

Major cuts in social security in 11 years?Maybe, if nothing is done



According to an analysis by the Urban Institute, even if taxes are imposed on high-income earners, Biden’s proposal will only allow the plan to repay the solvency of the plan for another five years, although it will reduce the benefits that must be cut if no further changes are made. .

Biden’s policy adviser said the proposal was an open bid. Mr. Biden’s external adviser and former National Economic Adviser Gene Sperling said: “The Vice President’s financing proposal shows how he will protect and increase the interests of all Social Security beneficiaries, while reducing long-term repayments. Ability.”

; President Bill Clinton and Barack Obama.

Almost every American will encounter some danger, or someone close to it will do so: Approximately 178 million workers have contributed to the plan, and this year, an estimated 45.8 million retirees will receive nearly $70 billion Benefits-The average monthly check is approximately $1,500 per month according to the Social Security Administration.

According to the current law, pension funds can only be drawn from the trust fund, and according to the estimation of the Social Security Administration, the fund will be exhausted by 2034. By then, the tax collected will only be enough to cover 76% of the benefits. (A September report by the U.S. Congressional Budget Office predicted that the trust fund will be used up by 2031, while other agencies, including the bipartisan policy center, are expected to be faster.

Mr. Akabas said the cost of inaction is huge, because as bankruptcy approaches, the necessary changes will become more and more painful-tax increases will need to be greater, and any cuts will be more severe. He said: “The longer we wait to solve the problem, the fewer people can play a role in the solution.”

According to a study published in 2017 by the “Social Security Bulletin”, about half of the population over the age of 65 lives in households, and at least half of these households’ income comes from social security. About 25% of elderly families have at least 90% of their income dependent on social security.

Sacramento’s 73-year-old retiree Joyce Welch (Joyce Welch) lives on social security alone. She is a single mother with two sons and worked full-time throughout her life. However, due to the undiagnosed autoimmune disease, her health began to decline about 15 years ago, and within a few years, she had to retire from her job as a site supervisor and family counselor at the Caregiver Support Center in Los Angeles.


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