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social security works
New GOP Senate Leader Is a Former Lobbyist Who Has Taken Aim at Social Security
Sen. John Thune "has called for taking the debt limit hostage to force cuts to Social Security," warned one defender of the nation's most effective anti-poverty program.
Nov 13, 2024
Senate Republicans on Wednesday elected Sen. John Thune of South Dakota—a former corporate lobbyist and close ally of Sen. Mitch McConnell—as the leader of their conference for the upcoming term, when the GOP will have a 53-seat majority.
Republican lawmakers chose Thune over Sens. John Cornyn (R-Texas) and Rick Scott (R-Fla.), who was favored by allies of President-elect Donald Trump.
"Senators have received angry phone calls from constituents demanding to know how their representatives plan to vote, following MAGA world's embrace of Scott," The Washington Postreported. The leadership election was conducted via secret ballot.
In a statement Wednesday, Thune said he is "extremely honored to have earned the support" of the Senate GOP conference and stressed that "this Republican team is united behind President Trump's agenda."
"Our work starts today," Thune added.
"It's a new day in the United States Senate."
After being elected Senate Republican Leader, Sen. John Thune says, “We are excited to reclaim the majority and to get to work with our colleagues in the House to enact President Trump’s agenda.” https://t.co/sMMVVx2PxT pic.twitter.com/GylMysaA3V
— ABC News (@ABC) November 13, 2024
Before winning election to the Senate in 2004, Thune worked as a lobbyist for several sectors including the railroad industry. The Leverreported last year that as part of his lobbying work for the Dakota, Minnesota, and Eastern (DM&E) Railroad, Thune "helped the company procure a $230 million loan from the Federal Railroad Administration."
"In 2015, Thune reprised his advocacy for the rail industry, leading an effort to repeal an Obama administration regulation requiring improved, electronic braking systems on some hazmat trains," the outlet added. "The following year, he received the first-ever 'Railroad Achievement Award' presented by the Association of American Railroads, the industry's main lobbying group."
Thune is also "one of the biggest recipients of oil and gas money in Congress," the youth-led Sunrise Movementnoted Wednesday following his election as leader of the incoming GOP Senate.
Over the course of his Senate career, Thune has received more than $1.16 million in campaign donations from the fossil fuel industry, according to the campaign finance watchdog OpenSecrets.
Thune's top contributor between 2019 and 2024 was the American Israel Public Affairs Committee (AIPAC), the right-wing pro-Israel lobbying group.
"Thune has called for taking the debt limit hostage to force cuts to Social Security."
Thune will take the reins of the Senate GOP conference as the party readies another round of tax cuts for the rich and large corporations—one of Trump's top priorities. Thune is a leading advocate of repealing the estate tax, a move that would benefit a small number of wealthy Americans.
Congress is also barreling toward another potentially damaging fight over the debt ceiling, which is set to be reinstated on January 2, 2025.
Thune has previously expressed support for leveraging the debt limit—and the threat of a catastrophic default—to secure steep cuts to federal spending and possible changes to Social Security such as raising the retirement age, which would slash benefits across the board.
Social Security Works, a progressive advocacy group, voiced alarm over Thune's debt ceiling stance following his election as Senate Republican leader on Wednesday.
"Thune has called for taking the debt limit hostage to force cuts to Social Security," Nancy Altman, the group's president, said in a statement.
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Right-Wing Think Tank Finds Trump Plans Would Wreck Social Security
The Committee for a Responsible Federal Budget estimated that Republican nominee Donald Trump's campaign proposals "would dramatically worsen Social Security's finances."
Oct 21, 2024
Republican nominee Donald Trump's claim that he wants to "fight for and protect Social Security" was called into further question Monday after a conservative think tank released an analysis projecting that the former president's economic proposals and mass deportation plan would significantly damage the New Deal program's finances.
The new analysis from the Committee for a Responsible Federal Budget (CRFB) specifically focuses on Trump's proposals to end taxes on tips, Social Security benefits, and overtime pay; implement sweeping tariffs on imports; and launch what he's described as the "largest domestic deportation operation in American history."
The think tank projected that, if enacted, Trump's agenda would "increase Social Security's 10-year cash shortfall by $2.3 trillionthrough FY 2035" and "lead to a 33% across-the-board benefit cut in 2035, up from the 23% [the Congressional Budget Office] projects under current law."
Trump's plans would also "increase Social Security's annual shortfall by roughly 50% in FY 2035" and "advance insolvency by three years, from FY 2034 to FY 2031."
"Trump has said he would close Social Security's long-term shortfall by increasing drilling for oil and natural gas and by growing the economy," the analysis notes. "However, we've shown that increased energy exploration is unlikely to have a meaningful effect on Social Security—even if the gains were deposited into the trust fund. We've also shown that it would require unrealistically fast economic growth to close Social Security's existing long-term funding gap."
Social Security Works (SSW), a progressive advocacy group that supports expanding the New Deal program, highlighted CRFB's analysis in a social media post on Monday, writing, "Donald Trump plans to slash $2.3 TRILLION from Social Security while giving massive tax handouts to Wall Street billionaires." (The Social Security Works Political Action Committee has endorsed Democratic nominee Kamala Harris for the presidency.)
Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare—which endorsed Harris in July—said it is "not surprising that Donald Trump's ill-conceived plans would devastate the financial health of Social Security and lead to huge benefit cuts."
"Trump's plans are of a piece with his overall recklessness with Social Security. He suspended the payroll tax that funds the program during Covid—and hoped it would be eliminated," said Richtman. "His White House budgets would have slashed Social Security Disability Insurance (SSDI) by billions of dollars. He said earlier this year that he was 'open' to 'cutting entitlements,' then tried to walk it back. He once called Social Security a 'Ponzi Scheme.' Time and again, Trump has chosen political expediency without considering—or caring about—the consequences. Despite his posturing, Donald Trump is no friend to Social Security or American seniors."
In a footnote of its analysis, CRFB states that Harris' proposals thus far "would not have large effects on Social Security trust fund solvency."
The Harris campaign quickly seized on CRFB's findings. Joseph Costello, a spokesperson for the Harris campaign, said in a statement Monday that "Donald Trump's agenda poses an imminent threat to Social Security, and seniors could have their benefits cut by a third."
"This is yet another reason that Americans simply cannot afford the risk of another Trump term, where he would pursue unchecked power to use his Project 2025 agenda to hurt the American people," said Costello. "Vice President Harris is committed to protecting Social Security benefits and is the only candidate who will actually fight for seniors, not just pay them lip service on the campaign trail."
According to the latest report from Social Security's Board of Trustees, the program is currently positioned to fully pay all benefits and administrative costs until 2035. Thereafter, even if Congress does nothing to shore up the program, it would be able to pay 83% of scheduled benefits.
To bring in more revenue and ensure Social Security's solvency through the end of the century, progressives in Congress have called for raising or scrapping the payroll tax cap, which allows the rich to stop contributing to the program just weeks into each year while ordinary Americans pay in year-round.
The Harris campaign has broadly signaled support for that approach, saying in its economic policy platform that the Democratic nominee would "shore up Social Security and Medicare so that these essential programs will stay solvent in the long run by making corporations and the wealthiest Americans pay their fair share in taxes."
This story has been updated to include comment from the National Committee to Preserve Social Security and Medicare.
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Progressives Say 2.5% COLA Increase Is a Reminder That Social Security Is on the Ballot
"Older Americans should pay close attention and make sure they support candidates who will protect the benefits they have earned—and even increase them—in the fast approaching November elections," said one advocate.
Oct 10, 2024
The cost-of-living adjustment announced Thursday by the U.S. Social Security Administration for more than 72 million senior citizens should serve as a reminder, said economic justice advocates, that the monthly Social Security payments—the "bedrock" of financial security for 58% of recipients—are on election ballots this year.
The administration announced a 2.5% cost-of-living adjustment, commonly known as COLA, for 2025. People who get retirement benefits through the broadly popular New Deal-era program will see their payments adjusted starting in January 2025, and people with disabilities who rely on Supplemental Security Income (SSI) will receive increased benefits starting in December.
To Nancy Altman, president of Social Security Works (SSW), which advocates to protect and expand the program, the COLA announcement underscored the vast differences in how Democratic Vice President Kamala Harris and former President Donald Trump are likely to approach the Social Security program should they win the presidency in November.
Harris and her running mate, Minnesota Gov. Tim Walz, both co-sponsored legislation to update the COLA formula to better reflect the cost of living for seniors and people with disabilities, noted Altman.
"Republicans have a different perspective," she said. "The Republican Study Committee (which comprises over 80% of House Republicans) proposes annual budgets that include Social Security cuts. Page 104 of the Fiscal Year 2025 Republican Study Committee Budget calls the automatic nature of COLAs a 'problem' and implies that they should be subjected to annual Congressional approval. It also claims that the current COLA formula is too generous. Social Security beneficiaries likely disagree!"
The authors of Project 2025, the right-wing policy agenda co-written by dozens of people who worked in the Trump White House from 2017-21, have also endorsed increasing the full retirement age from 67 to 69, which would cut benefits for nearly three-quarters of Americans.
The current formula for the COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), but advocates have called for the Social Security Administration (SSA) to instead take into consideration the CPI-E, which measures the spending of Americans 62 years of age and older.
"The formula currently used to calculate annual COLAs under-measures the expenses that Social Security beneficiaries face," said Altman. "Seniors spend a greater proportion of their income on medical expenses―and the Social Security COLA should reflect that."
For beneficiaries who last year received $1,870 per month, the 2.5% increase will give them an additional $46.80 each month, Social Security and Medicare policy analyst Mary Johnson toldNewsweek.
"That's only going to buy about 14 gallons of gasoline per month at today's prices, or maybe enough groceries for one to last two or three days," she added.
Richard Fiesta, executive director of the Alliance for Retired Americans, said the group welcomes the COLA, but warned that "many older Americans struggle to make ends meet and afford even the most basic necessities like housing, food, and prescription drugs."
"We need a COLA that better reflects how seniors spend their money," said Fiesta. "Strengthening Social Security and increasing benefits must be a national priority. If billionaires and the top 1% pay their fair share into the system, we can afford to increase benefits across the board and ensure Social Security is there for our children and grandchildren."
"Raising the retirement age, slashing benefits and privatizing the program are among retirees' top concerns," he added. "Older Americans should pay close attention and make sure they support candidates who will protect the benefits they have earned—and even increase them—in the fast approaching November elections."
Rep. John Larson (D-Conn.) pointed to the Social Security 2100 Act, legislation that would apply federal payroll taxes to earnings above $400,000 to ensure millionaires and billionaires pay their fair share toward funding and expanding Social Security.
"There is an urgent need to act to not only protect Social Security from the cuts that my Republican colleagues have proposed [but to] enhance benefits," said Larson.
Ahead of the elections, said Altman, "the bottom line is that Democrats want to make annual COLAs more accurate and generous, while Republicans want to make them stingier."
"Democrats also support other policies that would lower costs for Social Security beneficiaries, including Harris' recently released plan to expand Medicare to include home care, hearing, and vision benefits," she said. "Older voters should bear that in mind this November."
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