On Thursday, a Sam Johnson, a Republican rep from Texas and chair of Social Security subcommittee introduced legislation that will significantly reduce and cut social security.
The bill brought forward by Johnson, who was most presently serving as a Chair of the Ways and Means committee, cuts benefits. The bill will also mean more testing and could end up raising the retirement age from 67 years to the age of 69.
For many workers, this bill will slash Social Security benefits significantly. Michael Linden, the associate director for budget and tax policy at the Center for American Progress, explained that workers making around $50,000/year could expect to see their checks reduce by 11% to 35%.
Almost every income bracket can expect to see a cut, except for those at the very bottom. People who make around $12,280 annually in 2016 that have worked for 3 decades could see an increase of almost 20%. Young people making almost as much money could be hard hit by these changes. With 14 years of work experience, such people could see their benefits slashed in half.
There is speculation that the plan could cut the cost of living adjustments for the retired people that earn upwards of $85,000 annually.
In the case that nothing goes through, Social Security will still see a reduction of its ability to pay people’s benefits in full in the year 2030 and beyond. Josh Marshall from Talking Points Memo commented on his notes that by 2090 Social Security will still be paying at 74%.
Democrats are not happy at all with Johnson’s plan. The alternate plan is to increase taxes over the Social Security cap – this is where billionaires and the ultra-wealthy would pay the same amount of taxes as people making less than $118,000/ year. The other option is to raise the Social Security tax.
So what is next for the GOP social security bill ? Right now, Congress is going to deliberate on the bill and Johnson’s 2017 proposal.