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December 13, 2016

Rep. Sam Johnson Wants to Cut Our Social Security Drastically

U.S. Rep. Sam Johnson, R-Texas, chair of the Social Security subcommittee of the House Ways and Means Committee, has filed a bill that would cut Social Security drastically. Analysts say it could mean a 35% cut from current levels for some retirees.

The Social Security Reform Act of 2016, H.R. 6489, gradually raises the retirement age from 67 to 69 for Americans who are currently 49 or younger. It would change the formula that determines the size of a retiree’s initial payments and it would switch the program to a less generous formula for calculating cost of living increases.

“Now is when we find out if the president-elect will keep his promise not to cut Social Security,” said Robert Roach, Jr., President of the Alliance. “We know the voters certainly didn’t elect him hoping that cuts would happen.”

“This plan’s approach is a non-starter,” he continued. “It does not raise any revenues for the Social Security Trust Fund – it only cuts benefits.”

The Johnson plan would gradually turn Social Security into a program that produces essentially one flat benefit, regardless of how much a worker contributed.

The proposal would reduce Social Security’s cost of living increases (COLAs) for everyone and eliminate them entirely for some retirees, even though COLAs are already too low. The extreme plan would even reduce benefits for spouses and children of seriously disabled workers.

Johnson’s initial cuts come in the form of the two-year retirement age increase, which according to Paul Van de Water, a senior fellow at the Center on Budget and Policy Priorities, amounts to a seven percent cut each year.

The changes to the formula to determine the initial benefit — known as the Primary Insurance Amount (PIA) — are more complicated. In general, they negatively impact higher earners the most.

Almost all beneficiaries, however, would see reductions as time goes on when compared to current law, due to the legislation’s use of a less generous inflation measure.

Under the plan, a 65-year-old middle-income earner, someone who earned an average of $49,121 after 44 years in the workforce, would see a reduction in his benefits of 11 percent when he retires in 2030, compared to the current law. The amount of reduction would increase the longer he stays on the rolls: when he is 75 years old, the reduction would be 14 percent compared to current law, and 16 percent when he reaches 85 years old.

Worse, the cuts get more severe for a middle-income earner as the year of retirement gets further out. If a 65-year-old at the $49,121 earning level retired in 2050, her benefits would be 17 percent less than current law.

 

39 thoughts on “Rep. Sam Johnson Wants to Cut Our Social Security Drastically”

  1. Social Security is too low now! If politicians would replace the funds they “borrowed” Bush took 1.5 trillion from the Social Security Trust Fund for war in the Middle East. I’ve paid into Social Security for 50 years and now that I can finally get some return these assholes want to rob me!

    1. What you’re saying reflects financial illiteracy. “Borrowed” just means held in government securities. Social security assets have always been held in treasuries. Ditto for the bulk of private pensions, insurance company assets, much of what’s invested in 401is…. When you paycheck gets deposited in your local bank, what do you think happens to money? (Hint: It’s “loaned” to the government).

      1. Speaking of illiteracy, the “borrowed” was in quotes indicating that it was really stolen. The money is not in government securities. It is in the pockets of defense contractors. This money is GONE from the SS trust fund, and it needs to be repaid. Congress is desperately seeking a way not to repay it. That’s why these cuts are being proposed.

      2. Just remember that the government never paid a single dollar. American workers and employers did though . The government is only supposed to disperse the funds. Its now obvious that trump is not going to keep his promise to the American people. By cutting SSI, Medicare and Medicare and decreasing taxes and canceling regulations for corporations, he’s repaying himself and his sponsors at the expense of the American populous. What is Important is that our seniors, disabled and military wounded retirees will be the first to pay. Then the lower income workers, middle class employees will pay for the cooperate tax breaks. All this while prices of food, medicine and power are increasing. Trumps needs to keep his promises.

    2. Social security should not ever be cut by this government at all i to pay in to it , what are the disabled and elderly to do with out it ?

  2. This government has robbed SS, never paying a dime back! I Didn’t vote for that or the wars of Bush. ($1.37 TRILLION). They too another TRILLION after that! These people say they can’t live on $174,000 per year but we, the middle class that worked all of our lives and paid into SS are going to have our benefits cut/slashed! All of you that voted for HIM and of course Paul Ryan who is a HUGE advocate of slashing SS and Medicare will continue in his position, thank you for voting AGAINST your own interests! The Country is in serious trouble and is getting worse day by day!!!

    1. I agree the people in this country are stupid! They are going to hurt everyone! I would rather the assholes that voted for these thieves get it shoved up their asses not the people that voted for Hilary!

  3. The government should not EVEN be talking about Social Security cuts! That money has come from all the people who have paid into it for years!!! Instead of talking about CUTS, the government should be paying back the millions/trillions that it has STOLEN! They take OUR MONEY out of OUR PAYCHECKS……and now they want to cut it!!! UNACCEPTABLE!!!!!

    1. it’s not not just the government it is the majority of the republicans. during bush jr. time they wanted to make huge cuts into the va benefits with eliminating certain programs, as well as screwing up social security.

  4. Here is my response .. even Obama stole money, for his baby such as Obama care.. Why should we put up with this !!!
    There will be a face to face meeting of the people … to the politicians. These so call hard workers accomplish nothing yet want more money .. They are making $176,000 and want more… what about us.. all we hear is cut cut cut .. what about those who made Welfare a career, the illegals and the so called peaceful refugees murdering our citizens, and love ones. When will they listen looks like never .. I am tired of living on nothing after working 30 to 35 years…
    Looks like there will be a fight between the politicians and the people.. it may be become physical.. By the way Mr Paul Ryan why do you hate the working class.. we earned our benefits .. what about you .. you went to school and received social security … we ask let us live and leave us alone.. you already screwed us with no real increase in Social Security and increases in Medicare. Maybe its time to fight all of you !!! Looks like a war coming, but it will be at the capital (Washington, DC)

    1. “what about those who made Welfare a career, the illegals and the so called peaceful refugees murdering our citizens, and love ones.”

      Illegals commit crimes at about the same rate as citizens in the same economic bracket, and “career” welfare recipients are exceedingly rare. Most people on welfare are on it only temporarily (between jobs) and in the case of food stamps, only 10 percent of recipients are able bodied people without dependents. One third of them work.

      DK

    2. Wow, so much racism, I’ll bet you voted trump and republican! Do you realize those “illegals” pay more in payroll taxes —supporting Social Security–than they’ll ever benefit from due to their immigration status? They certainly paid more than trump and this Texas jerk who vows to cut EVERYTHING!

      1. How do they pay mor payroll taxes if they are not allowed to work in this country if they are illegal. That statement makes no sense.

    1. GOP????? They have all stolen from our social security every last one of them from all parties. Don’t ever think they have not. They are all in this for their benefit. If they all had to put their money in the SS system they would fix the system. But no they get special retirement on our dime. Its time we hold both parties accountable for working for the people and not themselves.

  5. Just remember the politicos are backed by the military and we THE People. .remember Tiananmen did you really think ‘rump was going to change things, make things fair? for The People. ..things will charge but not for the better. ..notforThe People…We The People were simply a means to an end. ..how to enrich me and mine. ..and the GOP with total control will slash and burn every program you and I hold dear

  6. Clearly the assault has begun.
    Repeal ACA without a replacement plan (hurts medicare)
    Privatize Medicare with a voucher plan
    Cut Social Security benefits
    We need to rise up together and speak out on these issues. Keep in mind that while the GOP wants to take spending down on the social safety programs, they want to pass huge tax cuts for the very wealthy. We are in serious trouble unless we fight these issues. Call your congressional reps and raise your concerns. Many of us will suffer if they pass these agendas. Its tough enough as it is now. Please speak out.

  7. This is really reprehensible!! I have worked over 50 years for my Social Security benefits. I am not willing to sit back and watch Johnson and Ryan mess with my benefits. They are already taking my ability to have insurance away with their Medicare vouchers !! I live on 611.00 a month and that is not something that Mr. Ryan or Mr. Johnson can do – I’ll bet. I depend on that money as my only means. They had better not touch it.

  8. This is why people need to stop voting republican!. Hand off Medicare and Social security!! The money is there! There is enough money until 2034! You just want to give the rich another huge tax cut! This is an assault on seniors and the disabled to kill us off ! Cut your own fat pension and leave us all alone!!!!!

    1. The benefits should last even longer than that as I do not believe that they have taken into account the shorter lifespan predicted for the next generation mainly due to their unhealthy diet choices.

  9. Grrrr, this really ticks me off. You expect physical labor workers to last til 69? This is a sure sign they want us dead before we collect what we’ve paid in for decades. Not all of us sit at a desk all day and have the hardest part of the job to putting on your suit. My gosh people, our current and future seniors are in desperate trouble with this Repub bill. May God look over us all.

  10. It is a disgrace that the GOP is turning on the American people just to satisfy their own greed. However, the stupid Trump followers voted them in and this is what we’re left with. Trump and the GOP lied to the people for a year about being for them and making America Great Again. All they are going to do is Make America Poor Again. Trump is not “draining the swamp” he’s going to turn it over to his millionaire buddies. Ryan and all the GOP cronies are destroying the American middle class, because they are a bunch of morons who don’t vote because “They didn’t like either candidate”. BS.

    1. You’d better believe it. Let’s see if the military fires on their moms, dads, grannies and grandpas.
      If they touch our only means of survival we will be forced to march on the white house and tear it apart if we have to.

  11. Congress needs to become volunteers. Let’s see them live on $1180 a month especially in the DC area. Can’t do it!! Besides why are we paying millionaires to be members of Congress anyway? Make them walk a mile in our shoes!!

    1. Your right cut their medical to 0% they can purchase their own. We need to cut their wages by 10% a year until SSI is solvent .as bad as their doing we could take the funds we spend on their medical coverage and expenses and start funding SSI.

  12. I’m afraid we are going to have push back very hard, using all legal tactics at our disposal.

    Very difficult times ahead…

  13. We have given our all to the good of the USA. Please do not decrease my Social Security benefit, duly earned as you earn your bountiful salary as a Congressman, right?

  14. It’s ALWAYS the people who have it all that look around deciding who they can take something from. Our politicians, BOTH Dems and Repugs, are either spineless or money/power grabbing bullies!! THEY don’t need to think about their future; it’s ALL taken care of!! It makes me sick to my stomach to think about the hypocrisy and total selfishness that’s involved here. If they attempt these cuts to our programs, there will be blood in the streets!!!

  15. Since seniors, disabled and Americans are in for such a long term SSI cuts that will increase over time, then each year,we should
    Cut congressmen, senators and presidents retirement salary, benefits. Each year senator and congressmen should have 10% decrease in salary until they get America on its feet. If America is in such bad financial shape they should be the first to have cuts. It is obvious that they haven’t done their job of protecting Americas interest . Since their own interest of giving companies tax brakes for hiding taxable monies in tax havens and taking loans from SSI which they had no plan of repayment.
    They either need to repay the borrowed funds, take a 10% pay cut, purchase their own health care from a private source. Because if Americas SSI, Medicare and medical needs to be cut then all representatives need to take cuts because as they say, America can’t afford to pay for So Few to Get So. much yet they do So Little So Late. Congress need to Do the job their paid for and save and increase Social Security.if all seniors, disabled and working Americans need to Vote Out anyone who supports this bill.

  16. UPDATE: Look out Seniors!! On Friday, February 24, 2017, Repub Congressman Tim Walberg (MICHIGAN) very quietly introduced in the House bill H.R. 1218–re Social Security Trust Fund Surplus and Medicare Trust Fund Surplus. Essentially, the beginning of Congress deciding to move the funds in each of these accounts out of U.S. Treasuries and into “Wall Street accounts” — another step of Rethugs ‘PRIVATIZATION OF SOCIAL SECURITY AND MEDICARE.” The Bill was sent Friday to (Republican-controlled) House Ways and Means Committee. This bill can be tracked in the Congressional Record. Hope Trump voters are satisfied–at least they wont be getting their Social Security/Medicare either, but it serves them right.

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