Tags: Donald Trump | Social Security | Trump Administration | debt group | trump | backwards | social security

Debt Group Slams Trump's 'Backwards' Social Security Policy

Image: Debt Group Slams Trump's 'Backwards' Social Security Policy
(MANDEL NGAN/AFP/Getty Images)

By    |   Friday, 14 Jul 2017 04:52 PM

President Donald Trump's plan to avoid cuts to social security would not work, according to a prominent debt reduction advocacy group.

"The built up reserves of the trust funds are projected to run out by 2034, at which time payments to recipients will be limited to whatever is collected in taxes That amounts to a 23 percent cut for every recipient no matter age or need," wrote Maya MacGuineas, President of the Committee for a Responsible Federal Budget, in an op-en for Time magazine.

"So clearly, Social Security cannot be left unchanged. So what can be done?"

Trump has said that he would avoid cuts to the program by eliminating fraud, abuse and waste, while also relying on increased economic growth. None of these would solve Social Security's problems, according to MacGuineas.

"Even eliminating all fraud would not significantly improve the solvency of the program, as there is not enough abuse in the system to significantly impact its costs. Totally eliminating all improper Social Security payments would buy the trust fund only about four months of solvency — less than a rounding error," she wrote "Meanwhile, higher economic growth would simply mean delaying the program's shortfalls rather than solving them, since higher growth translates into higher benefits."

MacGuineas concludes that "The President's logic is backwards. He is not saving Social Security by leaving it alone — he is ensuring its demise. Saving one of the most popular programs in U.S. history is a much better legacy than standing by as it fails to live up to its promises and jeopardizes the retirement security of those who depend on it most."

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
Politics
President Donald Trump's plan to avoid cuts to social security would not work, according to a prominent debt reduction advocacy group.
debt group, trump, backwards, social security, policy, demise
268
2017-52-14
Friday, 14 Jul 2017 04:52 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved