GOP tax bill would hasten Social Security, Medicare trust fund insolvency: CRFB
American Social Security Commissioner Frank Pesiniano discusses potential opportunities for fraud in the program, which is an incentive in a large and beautiful bill for the recipient and efforts to avoid possible insolvency.
The version that was passed in the Senate of the law of the Beautiful Republican Law, which is now subject to the consideration of the House of Representatives, would accelerate the insolvency of the insurance funds that help finance social security and medical care, according to a new analysis.
Last month, the trustees of social funds and Medicare Trust issued a report that shows that the money is on its way to exhausting in less than a decade, and at a time when automatic benefits discounts occur.
According to the current law, the Cerage for Insurance Fund in the field of social security will be exhausted in 2033, while the Security Anti -Insurance Fund will be funded at least 2099. The Insurance Fund for Insurance in Medicare is exhausted in 2033, causing 11 % reduction in allocations.
The advantages of social security and medical care will face automatic discounts if the confidence money is exhausted. ( / Istock)
The non -party committee of the responsible federal budget (CRFB) estimated that the tax policy changes for the beautiful bill will lead to the transfer of these dictations from early 2033 to late 2032 to obtain hospital insurance funds from late 2033 to late 2033 to mid -2032 for the hospital insurance fund.
The Social Security Fund for Social Security is now expected to dry in 2034, which led to huge discounts in the benefits
The law of the beautiful bill does not extend only to the arrest of the tax cuts that are scheduled to be expired at the end of this year, but also expands some current provisions and create new tax cuts and discounts.
The version of the Senate increases the draft law from the standard deduction of many senior couples by more than $ 13,000 (including a temporary increase of $ 12,000 in additional senior discount) in 2026 to more than $ 47,000 – which will actually reduce the number of elderly people who pay taxes on their social security benefits while reducing the tax rate on some of their benefits.
As a result of these changes and other provisions in the draft law, imposing taxes on the advantages of social security will be about 30 billion dollars per year less than the current law and accelerate the insolvency of these programs.
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Social Security trustees and Medicare recently reported that the money is confident on the right path of depletion in 2034 and 2033, respectively, under the current law. (Kayla Bartkowski / Getty Images)
Once the OASI TRUST box becomes insolvent in 2032, CRFB analysis is estimated that the advantages of social security will witness a hard automatic reduction of about 24 %-deeper than the 19 % discounts estimated under the current law when depleting OASI and DI boxes.
For comparison, the average monthly social security feature as of January 2025 was $ 1976, according to social security management data (SSA). The reduction will reach 24 % a reduction of $ 474 per month, reducing the average payment of benefits to $ 1502 a month.
CRFB estimates that the exhaustion of the Insurance Fund at Medicare Hospital will lead to a 11 % reduction in the payments related to the pre -pulse levels.
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The majority leader of the Senate John Thun and parliament Speaker Mike Johnson is working to pass the beautiful big bill this week. ( / Getty Images)
The report last month of social security and medical care secretaries urged Congress to take action to support funds and prevent their drain.
The report said: “The trustees recommend that the legislators address the shortfall in the expected release fund in a timely manner in order to develop the necessary changes gradually and give workers and beneficiaries time to control their expectations and behavior.” “Through the enlightened discussion, creative thinking, and legislative work in a timely manner, social security and medical care can continue to protect future generations.”
Medicare funds are facing social security funds and the age of America’s aging for previous contracts, as the percentage of workers turned to retirees.
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SSA data shows the percentage of workers who pay taxes to the number of beneficiaries 8.6 workers for beneficiaries as of 1955. This number has decreased to 2.8 as of 2013 due to the aging of the population.
2025-07-02 16:33:00
