What the Republicans plan for Social Security: Who pays, and who gets left behind
Washington (CNN) — The House voted Wednesday to begin negotiations with President Donald Trump on reforming the U.S. social security system.
The measure, sponsored by Rep. James Clyburn, D-SC, and Sen. Elizabeth Warren, D, MA, would provide a $3.9 trillion stimulus package over 10 years that would provide additional benefits to the working poor.
The bill, known as the “Trump-Clyburn Act,” would provide the President with more flexibility in deciding when and how to use the money to make the program sustainable, and would provide an extra $4.6 trillion in new funding over the next 10 years, with a $2.2 trillion increase for the Medicare trust fund.
The proposal would not include any spending cuts for the elderly or other recipients.
The House passed the legislation by a vote of 217-213.
Democrats are opposed to the plan, which has been criticized by many economists and Democrats.
The legislation would create a new “Medicare trust fund” and provide $1.5 trillion in additional federal aid for health care, education and other needs for the poorest Americans, but it would provide no additional money for Social Services and would allow Social Security to continue to decline.
Republicans have also criticized the proposal, saying it is a massive giveaway to the wealthiest Americans and would hurt seniors and their families.
The White House has said it will veto the bill.
“It’s not fair that the wealthy get more than the middle class and the poor get less than the rich,” Rep. Kevin Brady, R-Texas, said at the White House Wednesday.
“And if we want to get to a balanced budget, we have to find a way to deal with the middle classes.”
But Clyburn and Warren said the legislation is important because it will help the American people, not just the wealthiest.
“The American people deserve a plan that addresses their real concerns: how to get them the best care for them, the lowest cost of living possible, and the best opportunities for them to grow and prosper,” Clyburn said.
“This is not a partisan issue, this is an economic issue, and this is a plan for our future.”
The bill would create the Social Security Administration and provide an additional $400 billion in Social Security benefits over 10 months.
It would also establish a trust fund for the federal government to invest the $3 billion each year for Social Service programs, such as the Supplemental Nutrition Assistance Program and Child Care and Head Start.
It will allow the President to set the maximum amount of money in the trust fund and also allow Congress to limit its spending to $1 trillion per year.
Democrats have called for the bill to be approved by Congress, and some Republicans have expressed support for the plan.
But Democrats have said that the GOP-led Congress is not doing enough to help Americans who are at the very bottom of the economic ladder, which includes those who are unemployed and underemployed.
The Republican plan would create an “American Opportunity Fund” to help those Americans who have been left behind by the economic crisis and help them get back on their feet.
Democrats also want to increase the minimum wage to $15 per hour and expand the Earned Income Tax Credit for the poor.
“Republicans have said they want to raise the minimum, they want $15, and they want a plan to help people earn more,” Rep, Steve Scalise, R, LA, said in a statement.
“What they are not doing is addressing our economic problems and addressing our poverty.
Their proposal to raise taxes on working families and cut $400bn from Social Security would do just that.”