Lynne Stevens
Everyone wants their parents to be safe and secure in their senior years.
Our children need the wisdom of grandparents and many are relied on to help care for young grandchildren. Our older generation are an integral part of our culture and what they bring to young families is priceless. Each one who worked all their lives is absolutely entitled to the Social Security they worked for and every paycheck deduction reminds them where the money came from.
Over the years, Social Security has been kept from the chopping block and politicians mostly don’t cross the cutting line for fear of voter backlash. A 2022 Lee Network report stated that 24.8% of the Graham County population was 65 or over.
Seek and you may find a backdoor to cut this vital funding without hitting the headlines. Get out the weedeater, as we may encounter some thick brush ahead.
The Social Security Administration does not have the ability to borrow money to cover a shortfall; nor pay out more than it has in the trust fund. What happens if the fund cannot make payments in full and Congress does not act? Benefits can only be paid from taxes paid in. The law requires that benefits will automatically be reduced to a point that it has the money to pay out from taxes coming in.
This is how Social Security is cut without Congressional involvement and why cuts are possible down the road if Congress doesn’t act. House of Representatives Bill 1 – known as the “Big Beautiful Bill,” or HR1 – was a large, deficit-increasing bill. It significantly reduced taxes and revenue coming into the government. The bill does not contain language to cut Social Security, but the law requires it automatically if the Social Security Trust fund runs low (Section 201 of the Social Security Act).
Experts who work on predicting the level of depletion that would force cuts form a strong consensus that the year would be in the early 2030s. Higher birth rates, higher wages – which equals more taxes – and even lawful increase in immigration workers could help change the picture.
Another way to shore up the system is eliminating the cap on income which is taxed and that most unpopular solution of raising taxes. Higher cost of living increases, lower legal immigration and people living longer will hasten the cuts.
There are many ideas out there; some good, some not. We are an estimated 7-10 years away from our seniors possibly having to pay the piper.
You should understand that Congress has the power to work together to change this scenario and protect the ones we love from financial hardship. Choosing candidates by vetting them on this little-understood issue will go a long way in preventing it from happening.
Lynne Stevens writes a bi-weekly column for The Graham Star. She can be reached via email, geminga@mailfence.com.