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Despite a report predicting a massive cut within the next decade, one of President Joe Biden’s final acts poured gasoline on a benefits boondoggle.

Out of the many swords of Damocles that have been dangled over the nation by representatives both past and present, Social Security is oft treated with kid gloves. While many have voiced the desire to opt-out and those who paid in sought guarantees for a return on their forced investment, Biden’s signing of the Social Security Fairness Act came as watchdogs foretold a critical fund depletion by 2033 meaning a massive slash of 21% in benefits.

According to the findings of the Committee for a Responsible Federal Budget (CRFB), the Old-Age and Survivors Insurance Trust Fund is expected to run dry by 2033, legally limiting Social Security to pay out only as much as it takes in from payroll taxes.

At that time, an across-the-board mandated cut for retirees would take place amounting to a $12,400 reduction for the average single-income couple annually and $16,500 for a typical dual-income couple retiring per year.

The CRFB found the range to be as much as $10,000 to $21,800 depending on the income of the couple and went on to forecast that by 2098, the 21% reduction would grow to 31% because of income tax revenue collected versus the benefits being distributed.

Sunday, Biden’s signature on the Social Security Fairness Act rescinded the Windfall Elimination Provision and the Government Pension Offset which had limited benefits for those who received their benefits from other retirement programs, amounting to an increase in monthly payments for affected beneficiaries between $360 and $1,190 according to the Congressional Budget Office and would further climb with routine cost-of-living adjustments.

“The bill I’m singing today is about a simple proposition,” said the lame-duck president, “Americans who have worked hard all their life to earn an honest living should be able to retire with economic security and dignity — that’s the entire purpose of the Social Security system.”

“This is a big deal,” added Biden.

Meanwhile, weeks earlier, Utah Sen. Mike Lee (R) spoke about the need for “real reform” as he laid out how the system was “set up to fail.”

“The demographic shift? More retirees, fewer workers. It’s almost fair to compare it to a Ponzi scheme that’s running out of new investors,” he said while decrying Congress for tapping the funds for whatever they deemed “necessary.”

Ahead of the election, the CRFB had noted that neither Vice President Kamala Harris nor then-former President Donald Trump had a reform plan to deal with the trust fund’s depletion, but that the GOP leader’s proposal to remove taxes on Social Security benefits would result in OASI running out in 2032 instead of 2033.

“Both major party candidates for the presidency having no meaningful plan to save Social Security from insolvency is an egregious example of fiscal irresponsibility,” CRFB President Maya MacGuineas told Fox Business. “In less than a decade, Social Security will face insolvency, and the automatic benefit cuts that follow will mean the average dual-income couple will have $16,500 less per year than if our nation’s leaders had taken this issue seriously.”

“Saying the word ‘protect’ is not enough — both today’s seniors and tomorrow’s future retirees deserve to know specifically what will be done to prevent these cuts from happening,” she added.

In response to Biden’s signing ceremony, many reacted with disfavor to the anticipated accelerated insolvency of the funds.

Kevin Haggerty
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