Republicans expand Social Security at a cost of $196 billion. Guess who benefits.
Senate Votes to Expand Social Security
The Wall Street Journal reports Donald Trump is Whistling Past Social Security’s Insolvency.
Neither political party is serious about spending restraint, and the latest evidence is the Social Security Fairness Act that the Senate whopped into law late last week. This is a giveaway to public unions that whistles past the program’s looming insolvency.
The Senate voted 76-20 Friday that supposedly fix provisions that stop public employees from collecting disproportionate Social Security checks. One change would restore a bonus to government workers who spent part of their careers in private industry, giving them more generous benefits than retirees who earned the same amount in nongovernment work. A separate change would boost benefits for public workers who are spouses of private workers.
This is all a matter of fairness, according to lawmakers. Republican Sen. Bill Cassidy invoked teachers, firefighters and police officers, saying the reform would “stop punishing them for having elected to serve our communities.” Majority Leader Chuck Schumer called it a well-deserved Christmas gift.
This is political flim-flam. Retirement benefits for government employees are at least comparable to similarly paid private workers, and they are often much more generous for those who meet requirements for a defined-benefit pension.
Lawmakers reversed reforms passed in the 1980s to rescue Social Security that kept public employees in step with everyone else under Social Security’s benefit formula.
The GOP-led House passed the changes last month, 327-75, with Republicans in favor by nearly two to one. Twenty-seven GOP Senators voted in favor.
The Social Security bill will cost taxpayers an estimated $196 billion over 10 years, and much more than that in the years beyond. Affected public workers will gain an average $360 a month, according to the Congressional Budget Office, and spousal-benefit recipients will gain about $700 in each check.
Meanwhile, Social Security is already running a $4 trillion 10-year deficit, and it’s on pace for an automatic 21% benefit cut by 2033. The coming changes for unions could move the crash up by six months. Something has to give eventually, and future seniors and taxpayers will pay for this union boondoggle.
Expanding Social Security to Millions
CBS News reports Senate Approves Bill to Expand Social Security to Millions of Americans
Nearly 3 million Americans will receive full Social Security benefits under legislation passed in the waning hours of the current Congress and now headed to President Biden, who is expected to sign it into law.
Senators voted 76-20 for the Social Security Fairness Act, which would eliminate two federal policies that prevent nearly 3 million people, including police officers, firefighters, postal workers, teachers and others with a public pension, from collecting their full Social Security benefits.
Democrats uniformly voted for the measure, while Republicans in the Senate were split, with 20 voting to pass it and 20 voting against it. Four senators did not vote, including California’s Adam Schiff, a Democrat; Joe Manchin, an independent from West Virginia; and two Republicans — Marco Rubio of Florida and Vice President-Elect J.D. Vance of Ohio.
Senate supporters of the bill, including Louisiana Republican Bill Cassidy, argued that while Social Security’s funding shortfall needs to be addressed, that shouldn’t be done at the expense of retirees with public pensions.
The lead image is from the Congressional Record All Actions: H.R.82 — 118th Congress (2023-2024)
Where’s Trump, DOGE and Vance?
- The WSJ reported Donald Trump endorsed it the bill.
- CBS News reported Vice President-elect JD Vance of Ohio was among the 24 Republican senators to join 49 Democrats to advance the measure in an initial procedural vote that took place Wednesday.
- Vance then buried his head by not voting on the bill. So did Marco Rubio. This maneuver will allow both to later pretend they didn’t vote to increase the deficit by $196 billion.
- DOGE is hiding under a rock.
Republican Hypocrite Bill Cassidy wants to address the shortfall but not now.
Cassidy also claims this should not be at the “expense of retirees with public pensions” even though they collect far more in benefits on average than even the top Social Security recipients.
Who Are the Biggest Beneficiaries?
Police, teachers, and firefighters are obviously on the list.
But also note …
Members of Congress are eligible for a pension at the age of 62 if they have completed at least five years of service. Members are eligible for a pension at age 50 if they have completed 20 years of service, or at any age after completing 25 years of service.
So Congress gave itself a retirement pat on the back for a job definitely not well done.
Trump Threatens to Take Down Chip Roy
On December 19, I noted Trump Threatens to Take Down Chip Roy, One of the Only True Fiscal Conservatives
Massive Republican infighting between Trump and fiscal conservatives is underway.
What Would You Do to Balance the Budget?
For discussion, please see An Interactive Exercise: What Would You Do to Balance the Budget?
Unlike DOGE and Trump, I did balance the budget in my proposals.
Can DOGE Cut $2 Trillion?
I asked these questions on December 27: Can DOGE Cut $2 Trillion Out of $1 Trillion? What About Revenue?
If you think Trump or DOGE is going to do a damn thing about the deficit, please reflect on the above and read the link immediately above.
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