OBBBA and Medicare/Social Security
I wanted to put this into the MC and SSA heading after yesterday’s general discussion for those who missed it. Even though some people clarified the OBBBA impact on the SS trust fund via the senior tax deduction, I thought it should be here.
Yesterday’s post: Thanks DOC!
https://www.democraticunderground.com/100220460843
https://govfacts.org/explainer/how-the-one-big-beautiful-bill-impacts-social-security/
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The CRFB’s analysis indicates that because the OBBBA hastens the insolvency date, the automatic cut that would occur in 2032 would be deeper than previously projected. Beneficiaries would face an across-the-board cut of approximately 24%. This is significantly larger than the 19% cut projected under prior law.
For a retiree receiving the average monthly benefit of $1,976 in 2025, a 24% reduction would amount to a sudden and permanent loss of about $474 per month, lowering their monthly payment to just $1,502.
This creates a direct and damaging feedback loop: a short-term, targeted tax cut for some current retirees is financed in a way that guarantees a deeper, permanent benefit cut for all future retirees, including those who received the initial tax break. A senior who is 70 years old in 2025 and benefits from the tax deduction will, upon turning 77 in 2032, be subject to the very 24% benefit cut that their own tax break helped accelerate.
The OBBBA not only ignores this advice but actively moves in the opposite direction, using a partisan budget process to weaken a dedicated funding stream in service of tax cuts. This reveals a fundamental shift in legislative priorities, prioritizing short-term tax reduction over the long-term stability of America’s primary social insurance program.
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Given all the changes the Felon is making and the domino affects mentioned in the article along with the risk of various economic shocks due to tariffs, significant cuts to the federal workforce including FEMA, weather forcasting, and the slashing of IGs who investigate fraud, this is a very significant issue.
I also hate that SSA was used to send a political email misleading beneficiaries. I’m sure it’s illegal but who is going to stop him?
= new reply since forum marked as read
American jobs, the loss of those people who worked their asses off will not be replaced by Americans.
We lose their tax contributions in all categories, and small businesses won’t be able to service the public and may go under.
And since farmers and grocery stores benefit from programs like SNAP, they will suffer as these safety nets are cut.
The economy truly grows from the bottom up. Cut the legs out from under it and it’s like a house built on toothpicks.
I hope we can reverse this at the midterms even as I recognize the hurdles to getting there.
much better than I could.
