Sen. Markey warns Trump and Musk have ‘Social Security in their crosshairs'
Senator Ed Markey (D-MA) joins MSNBC's Jonathan Capehart to discuss the Trump administration's attacks on Social Security and what Sen. Markey calls Elon Musk and Donald Trump's implementation of 'designed neglect' to undermine the efficiency of agencies like the Social Security Administration.
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USA Today
an hour ago
- USA Today
4 Social Security changes Washington could make to prevent benefit cuts
4 Social Security changes Washington could make to prevent benefit cuts Show Caption Hide Caption Biden criticizes Trump administration's handling of Social Security Social Security overhaul sparks criticism from Biden over service disruptions, layoffs and automation as Trump defends changes as efficiency. Straight Arrow News Social Security is an important source of income for millions of Americans, but the program has a serious financial problem. Costs have increased faster than revenues in recent years because the aging population is growing more quickly than the working population. As a result, the trust fund, the financial account that pays benefits, is on track to be depleted within a decade. Specifically, the Congressional Budget Office estimates the trust fund will be exhausted in 2034. That would eliminate one source of revenue (i.e., interest earned on trust fund reserves), and the remaining tax revenues would only cover 77% of scheduled payments. That means a 23% benefit cut would be necessary in 2035. Fortunately, the lawmakers in Washington have several years to find a better solution. Here are four Social Security changes that could prevent deep, across-the-board benefit cuts. 1. Apply the Social Security payroll tax to income above $400,000 Social Security is primarily funded by a dedicated payroll tax, which takes 6.2% of wages from workers and employers. But some income is exempt from the payroll tax. Specifically, the maximum taxable earnings limit is $176,100 in 2025. Income above that threshold is not taxed by Social Security. Importantly, the Social Security program is projected to run a $23 trillion deficit over the next 75 years as it's strained by shifting demographics. But the deficit could be slashed by applying the payroll tax to more income. For instance, including income above $400,000 would eliminate 60% of the 75-year funding shortfall, says the University of Maryland. 2. Gradually increase the Social Security payroll tax rate to 6.5% over six years Under current law, the Social Security payroll tax rate is 6.2% for workers and their employers. But gradually raising that figure would eliminate a portion of the long-term deficit. For example, increasing thetax rate by 0.05% annually over a six-year period would eliminate 15% of the 75-year funding shortfall, according to the University of Maryland. Now that I've discussed two possible changes, let's step back and look at the big picture. There are basically three ways to resolve Social Security's financial problems: (1) increase revenue, (2) reduce costs or (3) some combination of the first two options. The changes discussed so far would increase revenue, but the next two changes would cut benefits. However, they are more subtle cuts than the 23% across-the-board reduction that would follow trust fund depletion. 3. Gradually increase full retirement age to 68 by 2033 Workers are eligible for retirement benefits at age 62, but they are not entitled to their full benefit — also called the primary insurance amount (PIA) — until full retirement age (FRA). Anyone that claims before full retirement age receives a smaller payout, meaning they get less than 100% of their PIA. FRA is currently defined as 67 years old for workers born in 1960 or later, but raising the figure would reduce the long-term deficit. For instance, increasing FRA to 68 years old by 2033, meaning it would apply to workers born in 1965 or later, would eliminate 15% of the 75-year funding shortfall, according to the University of Maryland. 4. Reduce benefits for retired workers with income in the top 20% Social Security benefits are determined as percentages of two bend points. Specifically, income from the 35 highest-paid years of work is adjusted for inflation and converted to a monthly figure called the average indexed monthly earnings (AIME) amount. The AIME is then run through a formula that uses two bend points to determine the PIA for each worker. Modifying the second (highest) bend point would eliminate a portion of the long-term deficit by reducing benefits for high earners. For instance, the University of Maryland estimates that reducing benefits for individuals with income in the top 20% could reduce the 75-year funding deficit by 11%. Here's the big picture: The four changes I've discussed would eliminate 101% of Social Security's $23 trillion funding shortfall, which would prevent across-the-board benefit cuts in 2035. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
Yahoo
8 hours ago
- Yahoo
Supreme Court allows DOGE staffers to access Social Security data
June 7 (UPI) -- The U.S. Supreme Court is allowing members of the Trump administration's Department of Government Efficiency to access personal Social Security Administration data. On Friday, the Court's six conservatives granted an emergency application filed by the Trump administration to lift an injunction issued by a federal judge in Maryland. Opposing the injunction were the three liberal justices: Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson. There are 69 million retirees, disabled workers, dependents and survivors who receive Social Security benefits, representing 28.75% of the U.S. population. In a separate two-page order issued Friday, the Supreme Court allowed the Trump administration for now to shield DOGE from freedom of information requests seeking thousands of pages of material. This vote also was 6-3 with no written dissenting opinions. In the two-page unsigned order on access, the court said: "We conclude that, under the present circumstances, SSA may proceed to afford members of the SSA DOGE Team access to the agency records in question in order for those members to do their work." The conservatives are Chief Justice John Roberts, and Associate Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett. Three of them were nominated by President Donald Trump during his first term. U.S. District Judge Ellen Hollander, appointed by President Barack Obama, had ruled that DOGE staffers had no need to access the specific data. The 4th U.S. Circuit Court of Appeals, based in Virginia, declined to block Hollander's decision. The lawsuit was filed by progressive group Democracy Forward on behalf of two unions, the American Federation of State, County and Municipal Employees, and the American Federation of Teachers, as well as the Alliance for Retired Americans. They alleged broader access to personal information would violate a federal law, the Privacy Act and the Administrative Procedure Act. "This is a sad day for our democracy and a scary day for millions of people," the groups said in a statement. "This ruling will enable President Trump and DOGE's affiliates to steal Americans' private and personal data. Elon Musk may have left Washington, D.C., but his impact continues to harm millions of people. We will continue to use every legal tool at our disposal to keep unelected bureaucrats from misusing the public's most sensitive data as this case moves forward." Social Security Works posted on X: "No one in history -- no commissioner, no president, no one -- has ever had the access that these DOGE minions have." White House spokesperson Liz Huston after the ruling told NBC News that "the Supreme Court allowing the Trump Administration to carry out commonsense efforts to eliminate waste, fraud, and abuse and modernize government information systems is a huge victory for the rule of law." Brown Jackson wrote a nine-page dissenting opinion that the "Government fails to substantiate its stay request by showing that it or the public will suffer irreparable harm absent this Court's intervention. In essence, the 'urgency' underlying the government's stay application is the mere fact that it cannot be bothered to wait for the litigation process to play out before proceeding as it wishes." She concluded her dissent by writing: "The Court opts instead to relieve the Government of the standard obligations, jettisoning careful judicial decisionmaking and creates grave privacy risks for millions of Americans in the process." Kathleen Romig, who worked as a senior adviser at the agency during the Biden administration, told CNN that Americans should be concerned about how DOGE has handled highly sensitive data so far. She said the personal data runs "from cradle to grave." "While the appeals court considers whether DOGE is violating the law, its operatives will have 'God-level' access to Social Security numbers, earnings records, bank routing numbers, mental and reproductive health records and much more," Romig, who now is director of Social Security and disability policy at the left-leaning Center on Budget and Policy Priorities. When Trump became president again on Jan. 20, he signed an executive order establishing DOGE with the goal of "modernizing Federal technology and software to maximize governmental efficiency and productivity." Nearly a dozen DOGE members have been installed at the agency, according to court filings. In all, there are about 90 DOGE workers. DOGE, which was run by billionaire Elon Musk until he left the White House one week ago, wants to modernize systems and detect waste and fraud at the agency. "These teams have a business need to access the data at their assigned agency and subject the government's records to much-needed scrutiny," Solicitor General D. John Sauer wrote in the court motion. The data includes Social Security numbers, date and place of birth, gender, addresses, marital and parental status, parents' names, lifetime earnings, bank account information, immigration and work authorization status, health conditions for disability benefits and use of Medicare. SSA also has data-sharing agreements with the IRS and the Department of Health and Human Services. The plaintiffs wrote: "The agency is obligated by the Privacy Act and its own regulations, practices, and procedures to keep that information secure -- and not to share it beyond the circle of those who truly need it." Social Security Administration Commissioner Frank Bisignano, who was sworn in to the post on May 7, said in a statement: that"The Supreme Court's ruling is a major victory for American taxpayers. The Social Security Administration will continue driving forward modernization efforts, streamlining government systems, and ensuring improved service and outcomes for our beneficiaries." On May 23, Roberts temporarily put lower court decisions on hold while the Supreme Court considered what next steps to take. Musk called Social Security "the biggest Ponzi scheme of all time" during an interview with Joe Rogan on Feb. 28. The Social Security system, which started in 1935, transfers current workers' payroll tax payments to people who are already retired. The payroll tax is a mandatory tax paid by employees and employers. The total current tax rate is 12.4%. There is a separate 2.9% tax for Medicare.
UPI
8 hours ago
- UPI
Supreme Court allows DOGE staffers to access Social Security data
June 7 (UPI) -- The U.S. Supreme Court is allowing members of the Trump administration's Department of Government Efficiency to access personal Social Security Administration data. On Friday, the Court's six conservatives granted an emergency application filed by the Trump administration to lift an injunction issued by a federal judge in Maryland. Opposing the injunction were the three liberal justices: Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson. There are 69 million retirees, disabled workers, dependents and survivors who receive Social Security benefits, representing 28.75% of the U.S. population. In a separate two-page order issued Friday, the Supreme Court allowed the Trump administration for now to shield DOGE from freedom of information requests seeking thousands of pages of material. This vote also was 6-3 with no written dissenting opinions. In the two-page unsigned order on access, the court said: "We conclude that, under the present circumstances, SSA may proceed to afford members of the SSA DOGE Team access to the agency records in question in order for those members to do their work." The conservatives are Chief Justice John Roberts, and Associate Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett. Three of them were nominated by President Donald Trump during his first term. U.S. District Judge Ellen Hollander, appointed by President Barack Obama, had ruled that DOGE staffers had no need to access the specific data. The 4th U.S. Circuit Court of Appeals, based in Virginia, declined to block Hollander's decision. The lawsuit was filed by progressive group Democracy Forward on behalf of two unions, the American Federation of State, County and Municipal Employees, and the American Federation of Teachers, as well as the Alliance for Retired Americans. They alleged broader access to personal information would violate a federal law, the Privacy Act and the Administrative Procedure Act. "This is a sad day for our democracy and a scary day for millions of people," the groups said in a statement. "This ruling will enable President Trump and DOGE's affiliates to steal Americans' private and personal data. Elon Musk may have left Washington, D.C., but his impact continues to harm millions of people. We will continue to use every legal tool at our disposal to keep unelected bureaucrats from misusing the public's most sensitive data as this case moves forward." Social Security Works posted on X: "No one in history -- no commissioner, no president, no one -- has ever had the access that these DOGE minions have." White House spokesperson Liz Huston after the ruling told NBC News that "the Supreme Court allowing the Trump Administration to carry out commonsense efforts to eliminate waste, fraud, and abuse and modernize government information systems is a huge victory for the rule of law." Brown Jackson wrote a nine-page dissenting opinion that the "Government fails to substantiate its stay request by showing that it or the public will suffer irreparable harm absent this Court's intervention. In essence, the 'urgency' underlying the government's stay application is the mere fact that it cannot be bothered to wait for the litigation process to play out before proceeding as it wishes." She concluded her dissent by writing: "The Court opts instead to relieve the Government of the standard obligations, jettisoning careful judicial decisionmaking and creates grave privacy risks for millions of Americans in the process." Kathleen Romig, who worked as a senior adviser at the agency during the Biden administration, told CNN that Americans should be concerned about how DOGE has handled highly sensitive data so far. She said the personal data runs "from cradle to grave." "While the appeals court considers whether DOGE is violating the law, its operatives will have 'God-level' access to Social Security numbers, earnings records, bank routing numbers, mental and reproductive health records and much more," Romig, who now is director of Social Security and disability policy at the left-leaning Center on Budget and Policy Priorities. When Trump became president again on Jan. 20, he signed an executive order establishing DOGE with the goal of "modernizing Federal technology and software to maximize governmental efficiency and productivity." Nearly a dozen DOGE members have been installed at the agency, according to court filings. In all, there are about 90 DOGE workers. DOGE, which was run by billionaire Elon Musk until he left the White House one week ago, wants to modernize systems and detect waste and fraud at the agency. "These teams have a business need to access the data at their assigned agency and subject the government's records to much-needed scrutiny," Solicitor General D. John Sauer wrote in the court motion. The data includes Social Security numbers, date and place of birth, gender, addresses, marital and parental status, parents' names, lifetime earnings, bank account information, immigration and work authorization status, health conditions for disability benefits and use of Medicare. SSA also has data-sharing agreements with the IRS and the Department of Health and Human Services. The plaintiffs wrote: "The agency is obligated by the Privacy Act and its own regulations, practices, and procedures to keep that information secure -- and not to share it beyond the circle of those who truly need it." Social Security Administration Commissioner Frank Bisignano, who was sworn in to the post on May 7, said in a statement: that"The Supreme Court's ruling is a major victory for American taxpayers. The Social Security Administration will continue driving forward modernization efforts, streamlining government systems, and ensuring improved service and outcomes for our beneficiaries." On May 23, Roberts temporarily put lower court decisions on hold while the Supreme Court considered what next steps to take. Musk called Social Security "the biggest Ponzi scheme of all time" during an interview with Joe Rogan on Feb. 28. The Social Security system, which started in 1935, transfers current workers' payroll tax payments to people who are already retired. The payroll tax is a mandatory tax paid by employees and employers. The total current tax rate is 12.4%. There is a separate 2.9% tax for Medicare.
