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Medicare, Social Security Tax Revenue Slashed By Up To $900 Billion [Report]

The Social Security retirement age could change. What that could mean for benefits
The age at which individuals are eligible for full benefits under the Social Security program may be raised as a result of funding issues and an increase in life expectancy. zimmytws | iStock | Getty Images (photo)

President Joe Biden last week unveiled his budget proposal for 2024 while continuing to charge Republicans of plotting to reduce senior benefits like Medicare and Social Security

Casey Mulligan, an economics professor at the University of Chicago, projects in a study by the Committee to Unleash Prosperity that the “anti-growth” policies promoted by the Biden agenda will ultimately result in a decrease in Medicare and Social Security tax revenue of at least $400 billion and possibly as much as $900 billion, depending on how long those policies are in place. 

The analysis emphasized that Biden’s anti-growth welfare, regulatory, tax, and employment policies that would lower GDP, growth, employment, and wages pose the greatest threat to Americans’ retirement financial security. 

President Joe Biden plans to revive the tax the rich to help fund Medicare.

President Joe Biden plans to revive the tax the rich to help fund Medicare. (Photo: Greg Nash/Pool/Getty Images)

Medicare, Social Security Budget To Be Cut?

Biden and his Democratic colleagues deny Social Security and Medicare the hundreds of billions of dollars those programs need to be sustainable, according to an opinion piece published in the Wall Street Journal. 

The same data from Campaign to Unleash Prosperity also noted that the value of retirement savings plans has decreased by $4 trillion since Biden’s inauguration. 

Campaign to Unleash Prosperity also highlighted the Biden plan would affect the benefits, showing that seniors will get fewer payouts when the economy grows more slowly. 

These initiatives provide a portion of current employees’ salaries to the elderly. Payroll tax money is available to pay for these two benefits in proportion to the number of individuals working and the average wage earned by each employee. 

ALSO READ: Age Of Full Retirement To Be Raised To 70 Under New Social Security Plan

How This Would Affect Workers

According to Fox News, Mulligan calculates that the overall impact of Biden’s insurance, regulation, and tax policies would lower worker income by 5% to 6.5%, citing a number of variables. 

The percentage of working adults, the amount of hours they put in, and the inflation-adjusted cash and fringe benefits they earn per hour of work are all factors that go into real employee pay per adult, which is 3.3% below the pre-pandemic trend. The employment-population ratio is now 1.3% lower than it was before to the epidemic. 

Mulligan said that depending on how long these anti-growth policies are in place, the Biden program “would eventually lower tax collections for these benefits by at least $400 billion and maybe up to $900 billion.”

RELATED ARTICLE: Over 50% Of Americans Nearing Retirement Age Have No Retirement Savings

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