Republicans apparently aren’t going to be satisfied with phasing out Medicare. They’re going to try to pass huge cuts to Social Security this year too. Not Bush-style partial phaseout but just big, big cuts. And you’re out of luck even if you’re a current beneficiary.
We’ll have more on this shortly. But reviewing the summary of the GOP bill, keep the following in mind. If you’ve been working for any number of years, but especially if you’ve been working for two or three decades, you’ve been paying in not only money for current beneficiaries but additional money which was invested in US government bonds to make it possible for Social Security to pay benefits of Baby Boomers and Gen-Xers. The additional money was required since there will be more seniors relative to the working age population.
This plan appears to foresee the government never paying that back to Social Security. In other words, your payroll taxes have been socking away additional money to cover the growing senior population. But this bill says too bad. That money goes for high income tax cuts.