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Tag: Social Security Trust Fund

  • The 2024 Trustees Report shows that Social Security is benefiting from a strong economy

    The 2024 Trustees Report shows that Social Security is benefiting from a strong economy

    The 2024 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, released today, shows that our Social Security system remains fully affordable.

    This year’s report announces that, thanks to a strong and growing economy, Social Security can pay all benefits and associated administrative costs in full until 2035, one year later than projected in last year’s report. After that, it can pay 83 percent percent of benefits, also an improvement over last year — even if Congress were to do the unimaginable, and take no action whatsoever.

    Social Security has an accumulated surplus of $2.79 trillion. It is 90 percent funded for the next quarter century, 83 percent for the next half century, and 81 percent for the next three quarters of a century. At the end of the century, in 2100, Social Security is projected to cost just 6.1 percent of gross domestic product (“GDP”).

    The following is a statement on the report from Nancy Altman, President of>Social Security Works: 

    “Today’s report shows that our Social Security system is benefiting from the Biden economy. Due to robust job growth, low unemployment, and rising wages, more people than ever are contributing to Social Security and earning its needed protections. As a result, Social Security can pay all promised benefits until 2035, one year longer than projected in last year’s report, and 83 percent of benefits thereafter, also an improvement over last year — even if Congress takes no action whatsoever.

    That said, Congress should take action sooner rather than later to ensure that Social Security can pay full benefits for generations to come, along with expanding Social Security’s modest benefits. That will restore one of the most important benefits Social Security is intended to provide to the American people — a sense of security.

    Congressional Democrats have introduced several plans that would do just that. These plans are paid for by requiring millionaires and billionaires to contribute more of their fair share. That is particularly appropriate since, according to Social Security’s chief actuary, rising inequality is the primary unanticipated reason that Social Security faces a funding shortfall in a decade. That inequality has cost Social Security $1.4 trillion over the last decade.

    Proposals to protect and expand Social Security are bipartisan in the only way that really matters — they have 
    strong support     from Republican and independent voters, as well as Democrats. In contrast, 92 percent of voters  oppose cutting benefits.

    President Biden is listening to the American people. As today’s report shows, Biden’s economic policies are already strengthening Social Security — and he understands that more is needed. His most recent budget calls for protecting and expanding Social Security by requiring the wealthiest to contribute their fair share.

    In contrast, Republicans want to cut benefits despite overwhelming opposition from the American people. The most recent budget of the Republican Study Committee, which consists of about three quarters of House Republicans, contains over $1.5 trillion in cuts to Social Security in just the next ten years. These cuts include raising the retirement age and deeply slashing middle-class benefits, radically transforming Social Security towards a flat, poverty-level pittance instead of an earned benefit.

    It’s not just Congressional Republicans. Presumptive Republican nominee Donald Trump, despite his protestations to the contrary, also supports benefit cuts. He also favors slashing Social Security’s dedicated revenue. In addition, Trump plans to sharply restrict immigration. This would harm Social Security by reducing the number of workers paying in.

    Ultimately, the question of whether to expand or cut Social Security’s modest benefits is a question of values and choice, not affordability. The United States is the wealthiest nation on Earth at the wealthiest moment in our history. We can use that wealth to protect and expand Social Security, or to provide yet more tax handouts to billionaires.

    This report is a reminder that the next decade is a crucial one for Social Security’s future. Americans should vote accordingly this November.”

    Here’s more from Just Care:
  • 2022 Trustees’ report on Social Security and Medicare shows slight improvements in their finances

    2022 Trustees’ report on Social Security and Medicare shows slight improvements in their finances

    The 2022 Social Security and Medicare Trustees’ report shows slight improvements in the finances of both Medicare and Social Security.

    According to Dean Baker, senior economist at the Center for Economic and Policy Research, the Affordable Care Act helped Medicare’s finances. He says: “This is hugely important, and little appreciated. The reduced payments to private [Medicare Advantage] plans operating within the Medicare program are attributed to the Affordable Care Act (ACA) reining in health care cost growth.

    Baker finds that the current estimated shortfall for Social Security is not much greater than the projected savings to Medicare as a result of the Affordable Care Act.

    Social Security is seeing small improvements because fewer people are receiving disability benefits and the US recovered quickly from the recession caused by the COVID-19 pandemic. Consequently, Social Security’s shortfall over the next 75 years dropped to 3.42 percent of payroll from 3.54 percent of payroll.

    That said, we know that the Trump administration made it harder for people to receive Social Security disability benefits. So, Social Security’s better financial footing might stem from fewer people receiving disability benefits than should.

    Medicare’s financial footing improved in part because its spending declined. Its premiums rose substantially because the government factored in payment for an expensive Alzheimer’s drug that it ultimately decided not to cover, except in the most limited situations. The premium hike underscores the power of the pharmaceutical industry to set sky high prices at the expense of taxpayers and people with Medicare.

    According to the Trustees, the federal government is seeing higher tax income, which also helps the financial condition of Social Security and Medicare.  Social Security reserves are expected to last until 2035–a year longer than projected last year–as of now. Medicare’s Part A Hospital Insurance (HI) trust fund reserves are expected to last until 2028. That’s two years later than previously projected. Medicare’s long-term financial situation also improved slightly, with a 75-year shortfall in the Hospital Insurance Trust Fund now at .70 percent of taxable payroll, down from .77 percent.

    Even with all reserves depleted, both Medicare and Social Security will continue. Social Security could pay about 80 percent of benefits with its annual income from payroll contributions. Medicare Part A could pay about 90 percent of benefits. Medicare Parts B and D costs in addition to premiums are paid for with general revenue, so are fully funded.

    In its 2022 budget, the Biden Administration proposed closing a tax loophole that would strengthen the Medicare Part A trust fund for a long time. It would require high-income taxpayers with pass-through business income to pay the Medicare tax on self-employment income and the net investment income tax on unearned income. This additional tax money would go to the Part A trust fund.

    We now need Congress to slow down Medicare spending. It could do so through allowing Medicare to negotiate drug prices. It could also do so by ending overpayments to Medicare Advantage plans.

    We also need to strengthen Social Security through additional tax revenues. Congress should lift the cap on Social Security payroll contributions. Medicare payroll contributions are not capped, nor should Social Security contributions be.

    Here’s more from Just Care:

  • Raising the minimum wage helps workers and Social Security

    Raising the minimum wage helps workers and Social Security

    The minimum wage has not been adjusted appropriately for inflation over the last several decades, while core expenses such as housing and health care have increased significantly. As a result, minimum wage workers do not make a living wage. Social Security Works just issued a report that explains why increasing the minimum wage to $15 an hour provides greater economic security to workers and their families both today and over the long-term in the form of higher Social Security benefits.

    The report finds that a $15 minimum wage will increase Social Security benefits for workers by as much as $5,000 a year. At the current minimum wage, Social Security monthly benefits are $979.80 for people at their full retirement age and $685.80 if they retire at 62.

    At a $15 an hour minimum wage, the monthly benefit would be $1,409.60. Each additional dollar in wages increases a worker’s Social Security benefits. Today, 1.7 million workers earn the $7.25 an hour minimum wage, and tens of millions of additional workers earn less than $15 an hour.

    The Economic Policy Institute found that a $15 an hour minimum wage beginning in 2025 would help 32 million workers directly or indirectly. Collectively, they would earn an additional $107 billion a year. Additional Social Security contributions would total 6.2 percent of that $107 billion.

    And, there’s more. Once the minimum wage increases, overall wages across the nation also increase. Consequently, the Social Security Trust Fund benefits even more. In addition, retirement security improves with an increase in the minimum wage, helping retirees who too often do not have retirement savings or traditional pensions.

    Increasing the minimum wage also helps older workers, women and people of color. About one in six older workers are paid the minimum wage; one in four older adults rely on Social Security for most all of their income. Women represent 59 percent of the population benefiting from an increase in the minimum wage, although women make up 50 percent of the workforce. More than three in ten Black Americans would benefit from the increase, although they make up 13 percent of the workforce.

    About one in eight older adults live in poverty today. More than four in ten older adults have incomes under 200 percent of the Supplemental Poverty Measure. The numbers are projected to go up.

    In sum, increasing the minimum wage is a much-needed reform that voters overwhelmingly support and that would benefit a large swath of the population and their families. The House COVID-19 relief bill included this increase. However, because the Senate Parliamentarian ruled that increasing the minimum wage is not directly related to the budget and should not be part of a budget reconciliation bill, it is no longer in the Senate relief bill. The Senate has the power to ignore the Parliamentarian’s ruling or to replace the Parliamentarian. But, Majority Leader Schumer doesn’t have the desire, it appears. Nor does President Biden. What will it take for a Democratic Congress and president to increase the minimum wage?

    Here’s more from Just Care:

  • All Americans should contribute at the same rate to Social Security

    All Americans should contribute at the same rate to Social Security

    Today is “scrap the cap” day for Social Security contributions. The goal is for all Americans to contribute at the same rate to Social Security throughout the year. Instead, in 2021, a cap on Social Security contributions exempts the wealthiest Americans from paying into Social Security after they have earned $142,800.

    As of today, February 23, anyone who earns $1,000,000 this year gets to stop paying into Social Security. This not only keeps the Social Security Trust Fund from growing as much as it should, it also creates a regressive system. Everyone but the richest Americans must contribute 6.2 percent of their pay check to Social Security throughout the year.

    Make no mistake. Millionaires benefit from Social Security just like everyone else. Everyone who contributes to Social Security, their spouses and sometimes their children, are entitled to retirement, disability, and survivor benefits. And, each year, about 20 percent of Americans receive Social Security benefits.

    In 2021, the Social Security contribution amount is 6.2 percent of your income. But, if you earn more than $142,800, you effective contribution rate is far less than 6.2 percent. You make no contribution on any amount you earn above $142,800. For example, people who earn $1,000,000 or more contribute less than 1 percent of their income to Social Security.

    In a decade or so, the Social Security Trust Fund will be taking in less money than it is paying out. The biggest reason is rising income inequality. Back in 1983, Social Security contributions were collected on 90 percent of total income earned. In 2018, Social Security contributions were collected on just 83 percent of total income earned.

    More than half of older adults over 55 have no retirement savings. As fewer Americans earn pensions, millions of older adults rely exclusively on Social Security income in retirement. Social Security must remain strong and benefits must be improved to ensure older adults have the income to afford basic necessities and to keep them from falling into poverty.

    If Congress lifted the cap on contributions to Social Security so that everyone in the US paid in 6.2 percent of their income throughout the year, not only would it be more equitable, but the Social Security Trust Fund would have the funds it needed to expand benefits.

    The Center for Economic and Policy Research (CEPR) has a calculator that shows you when during the year people at different income levels stop paying into Social Security.

    Here’s more from Just Care:

  • Will Congress support raising the cap on Social Security contributions in 2021?

    Will Congress support raising the cap on Social Security contributions in 2021?

    Teresa Ghilarducci explains in Forbes why we need to raise the cap on Social Security contributions. The Social Security cap means that the wealthiest Americans contribute only the tiniest fraction of their income–income representing less than a day of work–to the Social Security Trust Fund, while almost everyone else pays in throughout the year. President-elect Joe Biden supports raising the cap on Social Security. Will Congress?

    Contributions to the Social Security Trust Fund are supposed to represent 12.4 percent of income. Generally, workers pay half of that and employers pay the other half. Self-employed workers pay the full amount.

    But, there’s a limit to how much people must contribute. In 2021, the contribution is based on earned income up to $142,800. That’s a $5,100 increase from 2020. It should be more for wealthier people, as Congressman Larson and large numbers of Democrats in Congress are proposing in the Social Security 2100 Act.

    More than nine in ten workers, 94.6 percent–about 160 million people–pay into Social Security throughout the year. But, 5.4 percent, about nine million workers, earn above $142,800. They do not pay in to Social Security for the full year.

    Of the nine million people who earned above the Social Security cap, in 2019, 4,027 earned over $10 million. That works out to $2,397 every hour. These people will have paid into Social Security the full amount they owe on their first day of work.

    Google’s CEO, Sundar Pichai, earns more than $280 million annually, largely in stock options. Intel Corporation’s Robert Swan earned $66,935,100 in one year. But, they pay into Social Security as if their incomes were $142,800. Mr. Pichai and Mr. Swan look to the Social Security Administration as people who earn just $142,800 a year.

    The Social Security Trust Fund, unlike the Medicare Trust Fund, is in good shape for 12 more years. But, if Congress acted now to lift or remove the cap on Social Security payroll contributions, it would strengthen the Social Security Trust fund for many more years. It would enable Congress to expand Social Security benefits. Notably, there is no cap on Medicare Trust Fund contributions.

    Without additional Social Security contributions, it is projected that the number of older adults living in poverty will nearly double in 12 years. About nine percent of older adults will be living in poverty in 2033, up from 4.8 percent.

    Contributing more to Social Security should be of minimal consequence to the wealthiest Americans. As it is, Mr. Pichai gives way more to to charity each year than he would contribute to Social Security if Congress lifted the cap. More important, raising the Social Security cap would promote health and racial equity. It could also wipe out poverty among older Americans over the next 75 years.

    President-elect Biden supports raising the Social Security cap. With any luck, a majority in Congress will as well.

    Here’s more from Just Care:

  • Trump promises to terminate Social Security

    Trump promises to terminate Social Security

    In a press conference last week, President Donald Trump promised to terminate Social Security if he is reelected. While he never said that he was ending the program, he called for ending the payroll contributions that fund Social Security. Without these contributions, Social Security cannot pay benefits.

    Donald Trump once made promises about Social Security that either were extremely misleading or that he is now breaking. As Nancy Altman, President of Social Security Works writes: “We now know that what he meant is that cutting Social Security doesn’t go far enough for him: He wants to destroy Social Security.”

    As it is, Donald Trump has issued an executive order, which will weaken Social Security, reducing the amount going into the Social Security Trust Funds. If implemented, that order would allow employers to put off transmitting their employees’ payroll contributions to Social Security. It would save nothing for people with jobs today, because their employers will simply hold onto the withheld funds until they are due. Allowing the postponement of payments to Social Security also will not help anyone who has lost his or her job.

    Paul Krugman explains it this way on Twitter: “payroll tax cuts are the hydroxychloroquine of economic policy. They won’t do anything to solve the employment crisis, but will have dangerous side effects. Yet, Trump remains obsessed with them as a cure.” You don’t help the fact that unemployment is high and employers have been forced to lay people off by temporarily deferring payroll contributions. It is what you do, though, if your goal is to undermine Social Security.

    Krugman further tweets that ending payroll contributions to Social Security and Medicare will: “undermine the finances of programs that are absolutely crucial to the lives of older Americans. If you measure the quality of policy ideas on a scale of 1 to 10, this is a minus 5 or worse.”

    Without Social Security’s dedicated revenue, retirees would not be able to depend on the retirement security Social Security offers, as the majority of them do today, many exclusively. With millions of older people losing their jobs prematurely as a result of the COVID-19 pandemic, these benefits are needed now more than ever. As it is, pension benefits on which many of our parents relied in retirement, are less and less available. And, 401k benefits, when people have them, tend to be small.

    If President Trump is reelected and succeeds at terminating Social Security funding, that will end Social Security as we know it. Americans would no longer be able to count on Social Security benefits in retirement. They would not be able to count on Social Security in the event of disability or in the event of the loss of a spouse or parent.

    Call your Representatives in Congress to ensure they oppose any plan to deplete the Social Security Trust Funds and leave Americans without Social Security benefits. Let them know that you expect them to speak out against terminating payroll contributions to Social Security. If they do not, assume they want to destroy Social Security. And, if you want Social Security to continue, be sure to vote for candidates who stand behind Social Security.

    Here’s more from Just Care:

  • 2020 Social Security and Medicare Trustees report

    2020 Social Security and Medicare Trustees report

    This year’s Social Security and Medicare Trustees reports were released without considering the effects of the coronavirus pandemic and so are not likely to reflect the current state of these trust funds. With so many people out of work, however, less money has been going into these funds. But, Medicare and Social Security are destined to continue because of their enormous popular support and their value to Americans.

    Just recently, in response to the coronavirus pandemic, Vice President Joe Biden, endorsed a plan from Senators Elizabeth Warren (D-MA) and Ron Wyden (D-OR) to provide everyone receiving Social Security benefits with $200 more a month during this pandemic. This additional income would be of enormous value to older adults and people with disabilities who are most at risk.

    Nancy Altman, president of Social Security Works, writes:

    “Social Security is built to be a solution in times of national emergencies and disasters. After the terrorist attacks of September 11, virtually every child who lost a parent that day received Social Security benefits, as did the surviving spouses and those disabled as a result of the attacks, and their families. Indeed, Social Security was among the first insurers working with families after the attacks. The first benefits were paid on Oct. 3, 2001, less than a month after that horrific day.

    The same story unfolded in the aftermath of Hurricane Katrina. Emergency, on-the-spot payments were provided to tens of thousands of Americans who were driven from their homes and could no longer access their banks.

    To withstand the current public health crisis and the associated shock to the economy, Social Security has a substantial reserve, which, according to the just-released report, equals $2.9 trillion. Its purpose is to ensure that benefits will continue to be paid on time and in full, without interruption, in times like this.

    Social Security’s reserve is large enough to ensure sufficient revenue to continue to pay benefits in full and on time into the 2030s, no matter how long the current crisis lasts. When looking at the long-term, the next three-quarters of a century and beyond, the pandemic will be absorbed, as the Great Recession was.”

    The Trustees project that Social Security has another 15 years of funding and Medicare has another six, just like last year. The coronavirus pandemic will likely mean that these funds will be depleted sooner. Because so many people have lost their jobs and we are moving into a recession, payroll contributions to Social Security and Medicare will decrease over the next several years. Most likely, as well, more people will apply for Social Security benefits.

    That said, Congress is already strengthening the Social Security and Medicare Trust Funds through its investments in the economy. The more people working and contributing to these programs through payroll contributions, the stronger they will be. To strengthen these funds further, Congress should rein in health care spending in Medicare and throughout the health care marketplace. And, it should lift the cap on payroll contributions so that wealthy Americans contribute their fair share towards Social Security.

    Here’s more from Just Care:

  • Top Social Security questions and answers

    Top Social Security questions and answers

    The New York Times answered the top Social Security questions from its readers.

    Question 1. Is Social Security in good financial shape?

    Social Security is in good financial shape today and at least for another 15 years. By 2035, however, Social Security will face a shortfall. If Congress does not make changes, Social Security would be able to pay out only 80 percent of scheduled benefits. Congress can and always has made changes to keep it paying out full benefits. 

    There is good reason for Congress to act. According to Richard W. Johnson at the Urban Institute, unless Congress acts, another one-third of retirees could be pushed into poverty. Fortunately, there’s a bill in Congress, the Social Security 2100 Act that would strengthen Social Security over the long term. All it would take is increasing payroll tax rates by 0.1 percent a year through 2043 and applying payroll contributions to all earnings over $400,000.

    In 1977, Congress intended for Social Security to cover 90 percent of people’s earned income. But, it now only covers 83 percent of wages. The average wage has not increased as quickly as wages above the Social Security cap, which is $132,900 today.

    Question 2. How do Social Security spousal benefits work?

    If you have been married for at least one year,  you can claim a benefit as high as 50 percent of your partner’s benefit if your partner is claiming benefits. You can claim the benefit before your full retirement age, but it will be lower because you are claiming before your full retirement age.

    Usually, you must file for your own benefit and your spousal benefit at the same time. Social Security will pay you your own benefit and your spousal benefit as well, but only if your personal benefit is less than half of your spouse’s benefit.

    If you were born before 1954, you can file for a “restricted claim.” You would then get only your spousal benefit and you could continue to accrue retirement credits on your account until age 70.

    You also get a survivor benefit if a spouse dies so long as you were married for at least nine months before your spouse died. This benefit is usually 100 percent of your former spouse’s benefit.

    If you are divorced but had been married for at least 10 years and are now single, you can get a spousal or survivor benefit from your ex-spouse. If you get married again, you lose these benefits. You cannot get spousal or survivor’s benefits from your new partner unless you have been married a minimum of one year.

    Spousal benefits apply to same-sex married couples.

    Question 3. Will I get benefits for the rest of my life and will they be taxed?

    Once you claim Social Security benefits, you will get them for the rest of your life, and they will be adjusted up a bit for inflation. They may be taxed if your gross income, nontaxable interest income and half your Social Security benefit are greater than $25,000 for an individual or $32,000 for a couple filing jointly.

    If you file a federal income tax return as an individual and your combined income is above $34,000, as much as 85 percent of your benefits may be taxable. If your income is between $25,000 and $34,000, you may need to pay income tax on as much as 50 percent of your benefits.

    If you file a federal income tax return as a married couple and your combined income is above $44,000, as much as 85 percent of your benefits may be taxable. If your combined income is between $32,000 and $44,000, you may have to pay income tax on as much as 50 percent of your benefits.

    Here’s more from Just Care:

  • Mainstream media misleads public on Social Security

    Mainstream media misleads public on Social Security

    Social Security is in strong financial shape. But, you wouldn’t know it if you’re reading AP or watching CNN or CBS. Having bought into a billionare-funded campaign to undermine Social Security, the mainstream media unintentionally is misleading the public about this vital program.

    The Social Security Board of Trustees’ annual report was just released. It shows that Social Security now has an accumulated surplus of about $2.9 trillion. By the year 2100, it will represent just 6.07 of GDP. As compared with other wealthy countries, these retirement, disability, and survivor benefits represent a far lower percent of GDP.

    Social Security has funding today to pay out benefits in full for the next 16 years. After that, it is still 93 percent funded for the next 25 years and 87 percent funded for the next 50 years. The shortfall is modest. Congress could, if it chose, easily restore Social Security to long-range balance and, importantly, expand funding.

    The good news is that Congressional Democrats are working on just that. Congressman John Larson has introduced the Social Security 2100 Act, which now has 203 cosponsors.

    And, there are other Democratic bills in the House and Senate. Moreover, every Democratic presidential candidate now in Congress is a member of the Expand Social Security Caucus.

    Congressional Republicans have no plan other than to cut Social Security benefits. No Republican has cosponsored the Social Security 2100 Act or any other bill to expand Social Security. No current Republican politician has even introduced a bill to restore Social Security to long-range balance.

    Congressional Republicans are not listening to their constituents. Like Medicare, Social Security enjoys tremendous bi-partisan support. Americans across the ideological spectrum, including conservatives, are united in opposing cuts to Social Security and supporting its expansion. Nearly seven in ten (68 percent of) Republican voters say they do not want Congress to cut Social Security, according to multiple polls.

    Social Security is a solution. Expanding it would help to address our looming retirement income crisis. It provides needed economic security to virtually all working families, replacing wages when workers retire, become too disabled to work, or die, leaving dependents. How can we afford not to expand Social Security?

    What can you do? Help stop Republican politicians from blocking Social Security expansion. In 2020, vote for candidates who support expanding Social Security. In the meantime, let Congress know that you support expanding Social Security, please sign this petition.

    Here’s more from Just Care:

  • 2018 Trustees’ reports show GOP tax cuts hurt Medicare and Social Security

    2018 Trustees’ reports show GOP tax cuts hurt Medicare and Social Security

    The Medicare and Social Security Trustees just released their reports on these two vital social insurance programs. More than anything, they show that the GOP tax cuts are hurting Medicare and Social Security.

    The Medicare report reveals that the Part A trust fund, which is funded with workers’ payroll contributions, is now projected to face a shortfall eight years from now, 2026. The Social Security report reveals that its trust fund, which is also funded through workers’ payroll contributions, will not face a shortfall until 16 years from now, 2034, the same projection as in 2017. It should be noted, however, that over the course of the last several decades shortfall projections have never been accurate and have changed from one year to the next.

    Indeed, projections this year for the Social Security disability program are that it will not face a shortfall until 2032, four years longer than projected last year.

    For the record, neither Medicare nor Social Security has ever actually faced a shortfall. Sometimes, the economy improves and more workers contribute to these programs. Or, workers make higher wages, increasing contributions to these programs. And, Congress can always step in to ensure these programs are adequately funded. With Social Security, Congress would need only to lift the $128,400 cap on Social Security contributions. 

    Even if none of these things were to happen and the Medicare Trust Fund were to face this shortfall in 2026, it would still be able to pay out more than 90 percent of its estimated benefits. Similarly, if the Social Security Trust Fund were to face a shortfall in 2034, it would still be able to pay out 77 percent of its estimated benefits. Neither program would be insolvent.

    Moreover, as Nancy Altman explains, the US can easily afford both Social Security and Medicare. The only reason we are seeing these projections from the Trustees, according to Altman, is that the Republicans have sabotaged Medicare. If Congress wanted to, it could easily expand both of these programs.

    Trump and GOP initiatives are reducing the number of workers paying into Medicare and Social Security. And, their tax cuts reduce income for Medicare and Social Security. They also lower taxes on Social Security benefits. “As a whole, the law has a significant net negative effect on the financial status of the OASDI program [both retirement and disability] over the short-range projection period and a negligible net positive effect over the long-range projection period,” according to the Trustees.

    As of 2019, the GOP tax cut ends the penalty on people who do not have health insurance under the Affordable Care Act, which will increase Medicare costs. More people will go without insurance pre-Medicare, now that they do not have to pay a penalty for so doing. And, that will mean that more uninsured will need hospital care, driving up hospital costs and, as a result, increasing the amount Medicare pays hospitals.

    The GOP also ended the Independent Payment Advisory Board, which was designed to help ensure Medicare remained strong, keep its rate of growth down and improving quality. Without IPAB, there is no mechanism to realize these goals.

    Here’s more from Just Care: