Are you prepared for a 27 percent reduction in your Social Security benefits? If Rep. Sam Johnson (R-TX), Chairman of the House Social Security Subcommittee, has his way, that’s what 70 percent of beneficiaries would see on average under his new plan.
The newly introduced “Social Security Reform Act” that conservatives are parading around Washington attempts to camouflage the draconian nature of the plan with targeted benefit increases for low earners (26 percent of recipients). But don’t let this phony progressivism fool you.
Johnson’s bill includes an assortment of benefit cuts including raising the retirement age to 69 (equivalent to a 13.5 percent across-the-board cut), changing the benefit formula (9 percent average cut), and slashing the cost-of-living adjustment (13 percent average cut). Some long-lived beneficiaries could see cuts of up to 74 percent.
Despite Johnson’s window dressing, as many low earners will see cuts as increases.
Stand with the EPI Policy Center and our friends at Social Security Works to oppose the “Social Security Reform Act,” which cuts benefits for 70 percent of Social Security recipients.
The Johnson bill disproportionally hurts women and low-income workers who had employment gaps due to caregiving and unemployment. And it hurts those who had uneven earnings during their wage-earning years.
Johnson disingenuously claims his plan is motivated by an interest in extending Social Security’s trust fund. But he then turns around and eliminates the taxation of benefits on high earners—the very people who can afford to pay a little more.