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.
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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:
- 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.
- Adjust the full retirement age (FRA) for future retirees based on life expectancy.
- 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."
In his 2000 book, The America We Deserve, Trump supported raising the retirement age to 70. However, in January, his campaign ran TV ads attacking former U.N. Ambassador Nikki Haley's proposal to raise the retirement age.
Trump's overall stance is that "you don't have to touch Social Security." He hasn't provided details on a plan to keep Social Security solvent but has made statements that appear to reflect a view that U.S. oil revenue could help fund the program.
What do most Americans think?
Are most Americans in alignment with Biden and Trump in their opposition to the RSC's proposed Social Security changes? Perhaps not.
In a 2022 survey by the University of Maryland's Program for Public Consultation (PPC), 81% of respondents supported reducing Social Security benefits for the wealthiest Americans. Three-quarters of respondents favored raising the full retirement age from 67 to 68.
However, Biden's proposal to make wages of $400,000 and more subject to the payroll tax was also popular, with 81% liking the idea. And the support was bipartisan, with 79% of Republicans and 88% of Democrats in favor.
Opinions may have changed since the PPC survey was conducted. But with the clock ticking for Social Security's looming insolvency, it wouldn't be surprising if more people now support touching the third rail of American politics to avoid future benefit cuts.
