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Biden Plan for Social Security Leads to Major Cuts in Retirement Benefits Checks

Posted on Thursday, August 17, 2023
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by AMAC, Bob Carlstrom
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152 Comments
The Social Security Trust Find Cliff Graph

President Joe Biden has repeatedly tried to distract Americans by calling for Republicans to keep their hands off Social Security and Medicare as they work to rein in out-of-control spending. There are two big problems with Biden’s distraction: 1. Republicans are pushing for cuts to “discretionary spending,” the money Congress appropriates every year, which doesn’t include Social Security or Medicare because the two programs are considered “mandatory spending,” 2. Doing nothing as Biden wants will cut the average dual-income retiree couple’s Social Security benefits by $17,400 in 2033, according to a recent analysis by the Committee for a Responsible Federal Budget.

The Congressional Budget Office and the Social Security Trustees’ Report have confirmed that the Social Security retirement trust fund will be depleted in 2033, causing a 23% cut in benefits. With this latest report from CRFB, we can now quantify what that cut will mean for seniors retiring in 2033:

  • Single source of income, low-income retiree: -$7,900
  • Single source of income, medium-income: -$13,100
  • Single source of income, high-income: -$17,300
  • Dual-income, low-income retiree: -$10,600
  • Dual-income, medium income: -$17,400
  • Dual-income, high-income: -$23,000

For a typical retiree, a nearly $1,500 cut in monthly benefits will lead to disaster as it would require cutbacks to food, utilities, and medication.

Social Security is a unique federal program in both its funding and benefits. Under federal law, the Social Security portion of payroll and self-employment taxes goes into the Old-Age and Survivors Insurance (OASI) trust fund to pay for current benefits, with any remaining funds exchanged for special bonds backed by the U.S. Treasury. This means that today’s workers pay for today’s beneficiaries; however, as more seniors retire, more benefits are taken out of the system than deposited by workers. To cover these costs, bonds are redeemed, and the trust fund is slowly depleted. On its current path, the trust fund will be fully depleted in 2033; at that point, only the money coming in from payroll taxes will be available to benefits because Congress does not appropriate discretionary spending for Social Security.

AMAC Action has advocated for policies to guarantee the long-term solvency of the Social Security trust fund to prevent the 23% cut in benefits. This plan, the Social Security Guarantee, would ensure retirees get back every dollar they and their employer paid into the system, not raise taxes on workers, and ensures the program lives up to its promise to be an anti-poverty program.

Sadly, President Biden and Congressional Democrats know that if they run out the clock, politicians will have no choice but to raise taxes and turn Social Security from an insurance program into a welfare program. Every senior at or near retirement today knows Social Security is not welfare and should not be treated as welfare, but that can only be true if seniors demand Congress to guarantee Social Security.

Bob Carlstrom is the President of AMAC Action. 

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Marc
Marc
8 months ago

What, wait, “we” can afford to support illegal people and payoff someones college loans (that they said they would pay back) but “we” can’t cover people that paid into the system with the promise that they would be covered when they retired!

Carol
Carol
8 months ago

How does this man expect seniors to live? As it is my SS check just covers almost monthly expenses. And luckily I don’t have a mortgage or rent payment.
It must be nice to have all his ill-gotten monies from his son’s illegal activities and not have to worry about food or utilities. He is a complete idiot and a jerk!!!

DEBORAH
DEBORAH
8 months ago

STOP VOTING FOR CORRUPT CRIMINAL TREASONOUS ANTI-AMERICAN SATAN WORSHIPING DEMONRATS….THEY WILL COMPLETELY SHRED THE CONSTITUTION..THEY ARE OWNED BY CHINA..THEY ARE THE VIOLENT ONES…ALLOW CRIMINALS TO RUN RAMPANT…LOCK UP LAW ABIDING CITIZENS..WILL CALL FOR A TOTAL LOCK DOWN JUST BEFORE THE ELECTIONS SO THEY CAN RIG IT AGAIN……WE THE PEOPLE HAVE TO TAKE BACK AMERICA FROM THESE CORRUPT CRIMINAL DEMONRATS / LIBATARDS…..

Larry Barton
Larry Barton
8 months ago

We the People MUST DEMAND that Congress repay ( with interest) the raid on the Social Security system, led by the LBJ Democrats in the mid 60s

Rik
Rik
8 months ago

Jackass Joe Biden should be brought up on charges of TREASON, FOUND GUILTY and made an example of and PUBLICLY EXECUTED PERIOD! No previous President has done more to DAMAGE THE COUNTRY than Jackass Joe Biden! And the MAINSTREAM MEDIA IS JUST AS GUILTY because they are PROTECTING THIS CLOWN!!!

PaulE
PaulE
8 months ago

Washington works on the crisis rule. Put simply, until a crisis is about to actually occur, like within less than 3 months, Congress generally does nothing. Procrastination is an art form in D.C. and we have all seen how this game plays out repeatedly. So, I fully expect the Democrat plan for S.S. is to do exactly what is spelled out in the last paragraph of the article: “Sadly, President Biden and Congressional Democrats know that if they run out the clock, politicians will have no choice but to raise taxes and turn Social Security from an insurance program into a welfare program.” Social Security will be what the Democrats desire it to be, so they can ladle out the benefits to maximize Democrat votes. There is still time to make some much-needed changes to Social Security to reduce any future pain, but so far I don’t see anyone in Washington talking seriously about doing any of the necessary changes. All we’re getting is a lot of fear mongering and vague promises from those in Washington right now.

The best thing you can tell your kids and grandkids is to NOT expect Social Security to be around when they reach whatever the retirement age may be by then. To save and invest as much of their own money throughout their working adult years, so they will have financial security in their retirement without any reliance on Social Security. The average person has 40 to 45 years from the time they enter the work force full time to the time they actually retire. So, there is plenty of time and opportunity to build a private investment portfolio of at least a couple of million dollars. It just takes personal commitment and learning the skills necessary to do it.

For current retirees that are completely dependent on S.S. when it finally runs out money, I can’t offer any advice other than prepare as best as you can now for what will surely be a more means tested, lower monthly benefits check in the future. Once the politicians get their hands on the redesigned Social Security system they are envisioning, the number of beneficiaries will skyrocket, which means the individual payouts have to be smaller. That is how such programs operate in most socialist style countries.

TPS
TPS
8 months ago

So, billions for other countries, illegals, student loan forgiveness etc. etc. but no money to help American Citizens for the system government created to help them in retirement. Hmmm liars and hypocrites. IMO

Marilyn Perez
Marilyn Perez
8 months ago

I’m with the post below this one. Illegals get free everything, including in the future, citizenship. We that have worked our butts off all our lives get nothing. My great grandmother who came to America from Russia, sat in Ellis Island for weeks so she could become a citizen one day and now illegals can cross the border and get free whatever that we pay for.I grew up on a farm and worked in the fields every Summer–12hrs a day to grow food for our nation. As an adult I worked hard to improve my family’s living standard and now our president wants to take it all away. He helps China and gives pallets of money to Iran just like Obama did. America doesn’t mean anything to him. I call that Treason!

john
john
8 months ago

Not long ago I wrote to my congressman about the income tax on my social security payments. I like others are taxed on a percentage of my check because I have other income. Last year it amounted to about $3.000. My proposal was to put it back into the social security fund to help it’s longevity. This taxed amount goes into the general fund. I would imagine that overall this amounts to millions. I DID NOT HEAR A PEEP FROM THEM. Therefore they are making this a cash cow to spend elsewhere.

Levon Baxley
Levon Baxley
8 months ago

We can give millions to other countries but forget us old people. Democrats are the problem, they put social security into the general fund years ago so they could spend years ago. Remember this when you vote!!!!

William Hodge
William Hodge
8 months ago

How about the government cut spending to a degree that matches what has been stolen from the SS fund and repay into the fund. Then cut another 2% to increase the fund. Then stay out of SS money.

Steven
Steven
8 months ago

I wished that joe Biden keep his hands off of social security and Medicare and congress stay away from it!!

VikkiC
VikkiC
8 months ago

Start right now by cutting congressional members paychecks by 23%. That would be $40,020 per person, or $17,408,700 per year. Sounds like a good start to me.

Sandra Olson
Sandra Olson
8 months ago

The answer to this issue is fairly simple: eliminate the cap on how much income is taxed for Social Security. The low/middle-income worker is taxed on every penny he or she earns. Those who are earning millions/billions are only taxed on the small (to them) amount that hits the cap and then it’s home free for the balance. I don’t know what the cap is for 2023 but it’s pocket change for many of our uber-wealthy citizens. I’m assuming this will never happen because of the huge political clout the very wealthy enjoy and how their “in the pocket” politicians don’t want to upset them and their donations. This is a travesty; people who are blessed to earn mego-bucks should be paying on every one of those bucks. It would mean little to their bottom line; it would mean the world to “regular” workers.

Jackie
Jackie
8 months ago

There is not a single idea, notion, policy, executive order or law that the Biden administration has that I like, agree with, feel like is good for the country!!! I can’t understand their position, their attitude concerning the border and illegals! I am terrified for our country and its future if Democrats remain in power!!

Retired law Enforcement
Retired law Enforcement
8 months ago

Keep the social security working better Block it from being used for political purposes

Dave
Dave
8 months ago

Biden wants to spend $50 trillion on climate change/carbon emissions and be carbon zero by 2050. The government has no idea what this change will result in. (If the world went to carbon zero, the planet would die.) Now, it’s Social Security. Joe Biden is probably the stupidest president in history. This is typical government, screw up a program, take no responsibility for it and increase taxes to pay for it. And, they’re doing us a favor. I am so beyond sick of this schitt.

Sindal19
Sindal19
8 months ago

Maybe we can get congress to cut all of the administration wages, by 50% that would save the government a lot of money.

Susan
Susan
8 months ago

A vast majority of those in Congress and the Senate are at or above etirement age. IF all of them had to rely on SS payments for their lively hood SS #1 would Pay Much More, #2 would Never be in jeopardy, #3 would have much more attached benefits. Not only should there be Time Limits but also once done you become a regular citizen living on regular citizen insurance, retirement ETC

sdg
sdg
8 months ago

Thats my money i paid into for the last 45 years, and the bastard demoncrats are taking it to pay for the illegals and other deadbeats who never paid a dime into the SS system
Again another traitorous act that should place the entire Biden/Obama crime families into concentration camps for life!!!!!

Paul
Paul
8 months ago

I am confused by your math. A 23% cut cannot possibly equate to a $1500.00 a month reduction- unless you believe that the average retiree SS check is around $6,000.00 a month – which it most assuredly is not.

Barrett Smith
Barrett Smith
8 months ago

Wait until all of joe’s illegals start tapping in to SS.

Vince
Vince
8 months ago

Swamp is overflowing with Bureaucrats who really don’t have our backs at all. Many are living on SS and 2033 is just around the corner. Biden wants to give illegal migrants SS!? When will this nightmare end with this communist Marxist?

Thinking
Thinking
8 months ago

The seniors have a duty to die, the kids are being mutilated with the left’s trans movement. Population control. Or genocide by proxy.

El Viejo
El Viejo
8 months ago

ALL politicians need to be moved from govt pensions to Social Security. Then they would sort it out quickly.
Put them on term limits at the same time.

George
George
8 months ago

Why do they keep forgetting to tell the real reason SS is going broke! Remember Johnson’s Great Society, give away program. He raided SS and used the money for vote buying by giving to those who won’t work so they vote Democrat!

JayA
JayA
8 months ago

Everything the potato head and his evil cabal touch turns to crap. Everything!!

Liz
Liz
8 months ago

What the Dems are BETTING on is Full Funding NOW and if they can. take COMPLETE CONTROL down the road…WHEN SS RUNS OUT..THEY WON’T CARE..YOU are STUCK on “ZERO” Right NOW, they are buying VOTES!!!
The system NEEDS some REVISION to stay solvent-the sooner -the better BUT almost NOBODY has the backbone to speak AND ACT!!

Michael Stevens
Michael Stevens
8 months ago

Very sad (but true) 7 million illegals (who cannot work without a ss#), 100,000+ yearly deaths from drugs, 40,000 suicides per year, 10,000 baby boomers per DAY retiring, 90,000 IRS agents coming for us (highest ever), over $400 billion in interest on a $31 trillion national debt, large number of homeless persons who choose NOT to work….
What could possibly go wrong?

Lindsay
Lindsay
8 months ago

The only thing Algore ever said I agreed with was, “We need to put SS in a lockbox.” It never has been. We, The People, need to educate ourselves as to where this monstrosity came from in the first place and what the REAL intent was (and it was NOT altruistic). Since so many now depend on it, we need to fence it off. Do not touch these monies except for their intended purpose! For that, we need an actual budget and some……bodacious representatives willing to make it happen. Personally, I am in a state of constant disappointment with almost everyone. If I said to you, “Obama is Biden his time”, would it mean anything? I miss my America.

Phil Dexter
Phil Dexter
8 months ago

For a typical retiree, a nearly $1,500 cut in monthly benefits will lead to disaster as it would require cutbacks to food, utilities, and medication.” Heck, $1,500 is about all I get now! I’m 89 so maybe I’ll be gone by 2033, but this political stagnation is criminal! There are several things that can be done to save SS, but no one is the guts to even talk about it. Had they done small corrections 30+ years ago, when they first knew of the problem, there’d be no heavy burden now!

Gabe Hanzeli kent wa
Gabe Hanzeli kent wa
8 months ago

once again stealing from Americans to give to illegal aliens. this is treason and this should be meant with the appropriate punishment for treason.

Any of you leftist want to defend this?

Wayne
Wayne
8 months ago

He doesn’t need the money because he makes millions from foreign governments and the tax payers pay him a ridiculous federal pension along with free health care.

Steven
Steven
8 months ago

Senior citizens, people who retire or take disability payments from Social Security are the largest and most dependable voting block in the country. The quickest way for any politician or political party to to be removed from office and lose their support base is to mess with Social Security. It’s not going to happen. They’ll kick the can down the road rather than address the problem now and try to turn it into a “crises” that only they can fix forgetting that they caused the problem in the first place. For years politicians used Social Security funds to spend on their pet programs and never paid it back. There have been numerous attempts to fix this problem but the politicians don’t seem to want to fix the program. Social Security funds belong to the people who paid it for program themselves. This is not welfare. Ever notice when politicians talk about reducing Social Security they never talk about reducing Welfare? Well that large voting block of people 65 and older are going to remind them very quickly where they stand on any Social Security cutbacks.

Richard Hollingshead
Richard Hollingshead
8 months ago

I was told that years ago congress took money from social security to help pay for their spending, and I think that is true.

Stephen Russell
Stephen Russell
8 months ago

Break up SS DC bureaucracy

Jimmy P
Jimmy P
8 months ago

Blame this on our neighbors who continue to vote for Democrats. National suicide.

Melinda
Melinda
8 months ago

My monthly income is not large, but sufficient. I’m putting in savings as much as I can to prepare for hard times (I went through those times when young, so know how to economize).

Irv C
Irv C
8 months ago

Seems to me the democrats will truly be destroying America 100% allowing this. I can’t imagine the millions of retirees doing nothing. biden and all the democrats do not deserve office It’s waging war on Seniors yet this Jack arse can support illegals and pay college debts? WTF?

Robert Zuccaro
Robert Zuccaro
8 months ago

I thought my “lockbox” was “sacred”… I haven’t applied yet but I’m betting by the time I do, I’ll be collecting in YUAN after Democrats finish selling off America to China. Don’t forget 10% goes to the Big Guy!

Steve Hodnett
Steve Hodnett
8 months ago

We’ve waited too long to Impeach the Jerk. The Articles of Devolution should have removed him by Military Force.

Sam
Sam
8 months ago

If congress law makers would pay back all the money they have borrowed for SS over the years, all we be well

Mytake
Mytake
8 months ago

The politicians are the ones who took from SS to pay other debts. They should put it back from their own pockets. There are too many corrupt ones and have been for a long time without the knowledge of the people they are supposed to represent.

Granny26
Granny26
8 months ago

I doubt very much if Biden will even be around in 2033.

Jeanette
Jeanette
8 months ago

Biden

Ambrose
Ambrose
8 months ago

The dollar amounts for the cuts that are reported in the article must have been adjusted for future COLAs. If these cuts are supposed to be in 2023 dollars then they make no sense.  For most of my professional life, I’ve been paying the maximum annual dollar amount into SS.  Although eligible, I’ve yet to apply for SS. I’m still happily working and am below the full-retirement age, hence it makes no financial sense to start drawing SS at this time.  But a 23% cut to my estimated benefit at FRA is notably less than the dollar cuts referenced in the article for high earners. 

Diane Erskine-Sutter
Diane Erskine-Sutter
8 months ago

Please AMAC demand social security is protected. I totally depend on social security to live. I cut don on my meds and food to survive every month. The diabetes will win I know, but I would like some quality of life in the mean time45 years in nursing and this is how life is now. ButI thank God for my life every day.????❤️????????????

Granny
Granny
8 months ago

Can you direct us to how we can help? What to do? How to do it? Of course there will be no cut in any of the human services given to over 50% of those NOT working, will there?

Curtis St John
Curtis St John
8 months ago

“How To Lie With Statistics” 101 !

Redticket
Redticket
8 months ago

And how many millions of dollars did Nancy Pelosi take from the Social Security fund to try to impeach Trump? Not one red scent of that was paid back!

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