Social Security is currently unsustainable. It began running deficits in 2010 and its trust fund will be exhausted by 2036, which is when seniors will see about a 25 percent cut in benefits. This is the scenario we face if Congress and the President fail to enact meaningful entitlement reform and continue reckless fiscal policies. This course is reversible, however. At a recent House Budget Committee hearing on the fiscal facts concerning Medicare and Social Security, Members were divided on how to save Social Security. Despite hearing from Steve Goss, …
Congressional Republicans are outraged at President Obama’s suggestion that Social Security beneficiaries might not get their checks in the event that the federal debt ceiling is not raised by Aug. 2. “Have you no shame, sir?” asked Rep. Joe Walsh (R-IL) in a short video posted to his website on Thursday. “President Obama, quit lying,” Walsh demanded. “You know darn well that if August second comes and goes, there’s plenty of money to pay off our debt and cover our social security obligations. And you also know that you and …
Catching you up on clips, commentary and news of the day. Sign up for the daily email update from Scribe. Doing more by doing less – Ed Feulner On treaty, team O is ‘lost’ at sea – Peter Brookes Why is the government mailing you $2? – Rory Cooper Fix Social Security to give better future to our kids – David John The Obamacare Case Proves that It’s Time for Judicial Engagement – Edwin Meese III & Clark Neily Don’t Compromise on Taxes – Investor’s Business Daily New Obamacare regs confirm …
Any budget agreement should include an improvement of the accuracy of Social Security’s annual cost-of-living allowance (COLA) payments. Press reports say this is now on the table. COLAs are designed to protect retirees against inflation eroding the value of their benefits, but the index used to calculate those payments is inaccurate and overstates inflation by about 1 percentage point a year. Back in 1996, a commission led by economist Michael Boskin proved this, and since then, experts have been pushing for a more accurate measure. A more accurate measure would …
Yesterday’s debt-limit talks were “very constructive,” according to President Obama. But with party leaders still far apart on a number of issues, Obama will reconvene the group Sunday in hopes of reaching a deal before the administration’s Aug. 2 deadline. Rank-and-file lawmakers are growing impatient with the pace of progress. This weekend also marks the Republic of South Sudan’s declaration of independence ceremony. Obama announced an American delegation to mark the occasion. U.N. Ambassador Susan Rice will lead the group, which also includes former Secretary of State Colin L. Powell. …
Sen. Ron Johnson (R-WI) today predicted lawmakers would take President Obama to court if he deemed the debt ceiling is unconstitutional under the 14th Amendment. Liberals have floated the desperate and devious ploy in recent days to avoid spending cuts demanded by conservatives. “If the president decides to do that — and that would be his decision and his alone — our only option at that point would probably be to take him to court,” Johnson said this morning on a call with reporters and bloggers. “If he does it, …
The Senate canceled next week’s recess to address the country’s debt crisis. It’s an issue in the headlines every day as lawmakers and the White House debate a debt-reduction plan. Why does it matter? The national debt is set to explode in the coming decades as spending on entitlement programs such as Medicare, Medicaid and Social Security skyrockets. Even the International Monetary Fund has warned United States that it must reduce its debt or face serious economic consequences. Without action, the national debt will eventually reach a staggering 344 percent …
Sen. Kay Bailey Hutchison (R-TX), in an exclusive interview with Heritage, criticized her liberal colleagues for opposing Social Security reform, warning that they would rather increase taxes on businesses. Hutchison singled out Senate Majority Leader Harry Reid (D-NV) for his repeated assertions that Social Security is not in trouble. Reid has gone so far as to call it a “myth” perpetuated by conservatives. “It’s clearly in trouble if its own trustees say its going bankrupt in 25 years,” Hutchison said in the interview. “If that’s not a signal to …
While the national debt continues its climb above $14.3 trillion, the day is fast approaching when Congress will, once again, vote to increase the debt limit. This brings new urgency to the need to rein in Washington’s out-of-control spending binge. Since entitlement programs (Medicare, Medicaid, and Social Security) are the largest sources of deficit spending moving into future decades, they must be at the center of any solution. Social Security in particular is in big trouble. Americans pay into this program and rely on it for income security during retirement. …
Sen. Kay Bailey Hutchison (R-TX), left, visits Heritage today at 10 a.m. to talk about her plan to save Social Security, which faces $6.5 trillion in unfunded obligations over the next 75 years. She’ll sit down afterward with me to talk about why Social Security reform should be part of the debt limit debate. Then at noon today we welcome Rep. Fred Upton (R-MI) to Heritage for The Bloggers Briefing. As chairman of the House Energy and Commerce Committee, Upton has sway over a range of issues from health care …
