More politicians than ever appear willing to touch the so-called "third rail of American politics" -- Social Security. Multiple bills seeking to change the popular federal program are currently pending in Congress.
A group of Republicans in the U.S. House of Representatives recently put forward major Social Security changes that would impact millions of Americans. But both President Biden and presumptive GOP presidential nominee Donald Trump oppose them.
GOP representatives' huge Social Security proposal
Last week, the Republican Study Committee (RSC), which includes more than 170 GOP representatives, released its proposed budget for fiscal year 2025. The proposed budget, titled "Fiscal Sanity to Save America," addressed a wide range of government programs. The RSC's plan for Social Security was arguably the most controversial.
The combined Social Security trust funds are on track to run out of money in 2033. If nothing is done before then, steep benefit cuts will be required.
The RSC's plan rejected two approaches to addressing Social Security's solvency issues -- using general funds to pay benefits and increasing taxes. Instead, the committee called for three reforms:
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Adjust the primary insurance amount (PIA) benefit formula for those who aren't near retirement and earn more than the PIA benefit factor for the wealthiest individuals.
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Adjust the full retirement age (FRA) for future retirees based on life expectancy.
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Limit and phase out over time "auxiliary benefits for high-income earners." (Auxiliary benefits include those for spouses, divorced spouses, and children.)
The RSC didn't provide details on these proposals. However, committee chairman Kevin Hern emphatically stated that the GOP plan "will not adjust or delay retirement benefits for any senior in or near retirement." Still, it's clear, that these Social Security changes, particularly the increase to the full retirement age, would affect many Americans.
Why Biden and Trump oppose them
It isn't surprising that President Biden opposes these proposed Social Security changes. He told Congress emphatically in his latest State of the Union address, "If anyone here tries to cut Social Security or Medicare or raise the retirement age, I will stop them."
Biden prefers making earnings of $400,000 or more subject to the payroll tax cap that helps fund Social Security. He also wants to increase benefits for some individuals.
You might think that former president Trump would agree with the position taken by roughly 80% of House Republicans, but that's not the case. Last year, Trump argued that "under no circumstances should Republicans vote to cut a single penny from Medicare or Social Security." Although he seemed to advocate cuts to entitlements, including Social Security, in a recent CNBC interview, his campaign later said that Trump was only "talking about cutting waste."