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Trump And Biden: Vastly Different Positions On Social Security

While Vice President Joe Biden has a plan to strengthen Social Security, President Trump has not released such a plan, and has also proposed cuts.

President Trump has repeatedly said he would not cut Social Security.

But when asked if he would cut entitlements in a Fox town hall, he said he would.

“Fox host: If you don’t cut something in entitlements, you’ll never really deal with the debt. 

Trump: Oh, we’ll be cutting.  But we’re also going to have growth like you’ve never had before.”

And Trump kept his promise to make cuts, according to Factcheck.org, which noted, in Trump’s proposed federal spending plan, “On Social Security, the budget calls for changes to disability benefits that would translate to cuts for some beneficiaries. On Medicaid, there are more significant (but not well-defined) cuts.”  Factcheck also says the Trump budget includes reductions in future projected Medicare spending.

The Fox town hall was not the only time when Trump addressed making changes to entitlements.

He also promised changes in a CNBC interview:

“CNBC host:  Entitlements ever be on your plate?

Trump:  At some point, they will be.  We have tremendous growth. We’re going to have tremendous growth.  This next year, it will be toward the end of the year, the growth is going to be incredible.  And at the right time, we will take a look at that.  You know, that’s actually the easiest of all things, if you look.”

It’s not clear what Trump meant when he said changing entitlements was the easiest of all things.  But he did sign an executive order allowing deferral of payroll taxes that fund entitlements.  And he said if he’s re-elected, he would ensure workers don’t have to pay back deferred taxes.  But it’s not clear how that would work, since funding the deficit cannot be accomplished with an executive order.

It’s also not clear how Trump would shore up the Social Security system, since he has not released a plan to do so.

Joe Biden’s plan would impose the 6.2% Social Security tax on earnings above $400,000. Right now, employees and their employers are only taxed on earnings up to $137,000, an amount that increases each year.

An analysis by the Urban Institute says Biden’s plan for Social Security and Supplemental Security Income would lift 1.4 million Americans out of poverty in its first year.

Biden talked about the plans in a Vice News town hall.

“My proposal on Social Security has been straightforward from the beginning.  We have to increase the taxes on people making over $400,000 so they pay the exact same percentage of their income as we pay if you’re making $50,000 or $20,000 or $128,000.  That will make sure it’s solvent for all the young people in this audience and also allow us to raise the amount of money for those people living way beyond what Social Security expected them to live, so they can in fact have an increase in their Social Security payment, as well as if they lose a spouse, and their Social Security is reduced.”

And making long-delayed changes to shore-up Social Security is essential to maintain current benefits.

The Social Security Administration says by 2035, the number of Americans 65 and older will increase from approximately 56 million today to over 78 million.  And while there will be more people drawing benefits, the ratio of workers to beneficiaries will go down.  There are currently 2.8 workers for each Social Security beneficiary. By 2035, there will be 2.3 covered workers for each beneficiary.