Insider's Report: Next Coronavirus Relief Bill Could Hurt Social Safety Net
As Congress considers another much-needed coronavirus relief bill, we need to ensure fiscal hawks in Congress and the Trump Administration do not undermine Social Security and Medicare using the coronavirus pandemic as cover.
While President Trump has indicated he would be supportive of another relief bill, his chief of staff has insisted a "payroll tax deduction" is a "critical component" of this legislation. However, this proposal would reduce much-needed revenue flowing into Social Security at a time when this program should be strengthened not weakened.
At the same time, the National Committee is deeply concerned about growing bipartisan support for Senator Mitt Romney's (UT) "TRUST Act" (S. 2733) which could end up as part of the next coronavirus relief bill. This dangerous bill would create a "Rescue Committee" to draft legislation addressing the solvency of Social Security and other trust fund programs. Once this committee approved a trust fund bill, the legislation would be fast-tracked in the House and Senate, bypassing regular order. This would open up Social Security to potentially devastating across-the-board cuts. Significantly, the bill does not ask these committees to consider whether benefits are sufficiently adequate to meet Americans' financial and health security needs.
The National Committee recognizes that working Americans need relief from the financial pain of the coronavirus pandemic. But we disagree that Social Security — a program funded by Americans workers — should be misappropriated for purposes having nothing to do with its core mission, which is to provide basic income upon retirement, disability or the death of a family breadwinner. That is the very reason that President Franklin Roosevelt and his aides crafted Social Security as a worker-funded program — to protect it from politicians who might seek to misuse or dismantle it.
That's why the National Committee is urging House Speaker Nancy Pelosi to exclude these dangerous measures from a new coronavirus relief bill. Our message: Swelling debt and deficits are legitimate concerns, but lawmakers should not enact legislation that compels future Congresses to cut Americans' benefits while lavishing tax cuts on those who need it least.
Now is the time to provide additional relief to workers, small businesses, the unemployed and their families struggling through this pandemic — not to punish them with future benefit cuts.
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