But the Tax Cuts and Jobs Act will reduce taxes again.
By 2020, total costs will be higher than total income according to the 2019 Social Security Report. This past Monday, March 11, President Trump unveiled his fiscal 2020 budget proposal for the federal government. Items are included in this compilation on the basis of their significance for Social Security generally, their importance as precedents, their value in reflecting trends or issues, or their significance in SSA's administrative history. This routine consideration of Social Security constraints led to concerns that cuts in Social Security were being proposed for budgetary purposes rather than programmatic ones.

First, expand deficits through tax cuts, then declare that spending must be slashed. The Social Security Act of 1935 set the original rate at 1% of the first $3,000 of annual income, with provisions to gradually increase … That's because your Social Security benefits are slashed if you earn above a ceiling that is adjusted each year.

The chief target of these proposed cuts is Social Security, which historians have … Despite promising no cuts to Social Security, the president's budget proposal seeks to make one key change to the program. What that record shows is that Biden has a 40-year history of being open to Social Security cuts, including raising the retirement age, reducing cost-of-living adjustments and, worst of … That will make it the first year since 1982 …

We sort through some of the competing claims. Truth: Whether to expand or cut Social Security is a question of values, not affordability.
Unlike the vote to authorize the Iraq War, which was on the record, the efforts to cut Social Security were cloaked in secrecy, obscured from sight, because they were such bad policy and politics.

As a reminder, fiscal years for the federal government end on Sept. 30 and begin on Oct. 1. At the end of the 21 st century, Social Security will spend, as a percentage of GDP, not much more than it spends today. Biden has been proposing cuts to Social Security and Medicare for decades on exactly these grounds. 1981: President Reagan proposes $35 billion in Social Security cuts over the next 5 years. That increased revenue to the Fund, and improved its cash flow shortfall. As early as 1984 and as recently as 2018, former Vice President Joe Biden called for cuts to Social Security in the name of saving the program and balancing the federal budget. The Social Security system is primarily a pay-as-you-go system, meaning that payments to current retirees come from current payments into the system. In 1977, President Jimmy Carter and the 95th Congress increased the FICA tax to fund Social Security, phased in gradually into the 1980s. History.