WASHINGTON – The Washington Examiner praised the leadership of U.S. Senator Bill Cassidy, M.D. (R-LA) on Social Security. Under current law, Social Security beneficiaries will receive a 24% benefit cut when the Social Security Trust Fund goes insolvent. This includes those currently receiving Social Security checks and those who will receive them in the future.
“Give Sen. Bill Cassidy (R-LA) credit for being one of the few national legislators with enough guts to insist that major reforms will be needed to save Social Security.
“One idea in particular, that of creating a separate investment plan apart from Social Security but whose proceeds are dedicated to the retirement program, is worthy of extensive consideration.
“Right now, the main Social Security ‘trust fund’ is projected to become insolvent in just 10 years. Yet the major contenders for president in 2024, especially former President Donald Trump and President Joe Biden but also Gov. Ron DeSantis (R-FL), are spewing demagoguery portraying just about any reform effort as an attempt to ‘cut’ Social Security. As Cassidy has noted innumerable times in recent months, these politicians lie. In fact, under current law, benefits would be cut by 24% immediately upon the program reaching insolvency. Trump and Biden, by doing nothing, are the ones who would be cutting Social Security.
“Cassidy has been working with Sen. Angus King (I-ME) to produce a plan to rescue the system while preserving as inviolable the option of “early retirement” at age 62… They haven’t put forth a final proposal yet, but Cassidy, on April 16, confirmed on Meet the Press that one element almost sure to be included is the creation of a ‘sovereign wealth’ program.
‘[W]ith Social Security so close to insolvency, the benefits of Cassidy’s suggestion probably outweigh the risks. If the free-market economy continues to grow, some 75% of Social Security’s shortfall could be eliminated at no permanent cost to the federal balance sheet…
“Either way, Cassidy deserves thanks for trying to do something constructive rather than letting Social Security insolvency leave impoverished seniors stranded.”
Read the full Washington Examiner article from Quin Hillyer here.
Cassidy is leading a working group with Senator Angus King (I-ME) and a bipartisan group of colleagues to preserve and protect Social Security. He questioned Treasury Secretary Janet Yellen on the Biden administration’s lack of a plan to address Social Security at a Senate Finance hearing and delivered a speech on the Senate floor calling on President Biden to honor his pledge to protect Social Security and meet with a bipartisan group of senators currently discussing options to save the program.
In March, the Trustees of the Social Security and Medicare trust funds moved up the Social Security insolvency deadline a full year.
In February, the Congressional Budget Office updated its estimates saying Social Security is heading toward a financial cliff in 2032. They found Medicare and Social Security spending rapidly outpacing federal tax revenues further hastening the insolvency deadlines to 2032.
Last June, Cassidy reacted to the latest Social Security and Medicare Trustees annual report saying these programs are heading toward a financial cliff. The report stated Social Security needs to either cut benefits by 24% or increase revenue by 33% to gain long-term stability.