Op-Ed: 2024 Social Security Trustees Report

Dear Editor,

Any uninformed or misinformed extremists who are spoon-fed their political views can save time and stop reading this short op-ed. Go ahead and turn to the comics section of this publication. My intent is to reach out to individuals who are open-minded, exercise a little forethought, and, most of all, are able to think for themselves.

This week I have several comments based on the 2024 Social Security Trustees Report which can be read at SSA.gov. Thanks to a stronger economy based on wage and job growth, more money than expected is being contributed to the Social Security Trust Fund. This will delay any benefit reductions until 2035. Once the fund is exhausted, beneficiaries can expect an estimated 17% benefit reduction. To be clear, depletion of the fund will not abruptly end Social Security since continuing FICA payroll taxes will pay benefits at a reduced rate. Regardless, can seniors afford to pay their bills with a 17% cut in benefits? What are the solutions to avoid reductions? Does either major political party have a plan to keep benefits off the chopping block?

I asked Tim Sheehy (candidate for US Senate) at a recent meet and greet in Whitehall what the Republican plan is for saving Medicare and Social Security. He implied beneficiaries could remain on the programs after the trust fund is drained. Thanks for nothing, Tim. Republicans are taking no action to save either program as is. Mr. Sheehy told me the goal should be to privatize both programs. To achieve privatization, it’s evident to me that nothing needs to be done. Doing nothing will result in Social Security benefit reductions and the end of Medicare. Unfortunately, we seniors will pay the price for Congressional lack of action. Based on their lack of action, I perceive the Republican Party has every intention of letting both programs fail. The Republican Party's feel-good talking points will do nothing to keep both programs solvent without a plan. Doing nothing is not a plan.

Currently, FICA withholding for both programs is capped at $168,600. That is, income above the cap is not taxed. The Democrat plan is to continue FICA payroll tax withholding up to $168,600. Income from $168,600 to $400,000 would not be taxed, and income above $400,000 would be subject to FICA withholding. If enacted, this plan will extend trust fund solvency into the future well past 2035.

Regarding saving Medicare, the Democrats passed the Inflation Reduction Act, which has enabled Medicare to negotiate the costs of a few medications with pharmaceutical companies. You can read more about this at CMS.gov. Medicare is the largest purchaser of prescription drugs in the world. The Medicare program could save hundreds of billions of dollars if it used economies of scale and negotiated prices for all its drug purchases. Drug cost savings combined with cracking down on medicare fraudsters in the private sector could produce enough savings to allow Medicare Part B to cover more than 80% of senior medical costs. Medicare Part B coverage is currently capped at 80%.

Social Security is one of the solid foundational bedrocks of our society. It has been there for everyone who has paid into the system for the last 85 years. In all of that time, it has never missed a benefit payment. Social Security is not an unearned entitlement. Social Security is not a Ponzi scheme. Social Security is an earned benefit bought and paid for through payroll withholding taxes. And now, it is time for all Americans, including the rich, to pay their fair share into this essential program which keeps millions of seniors out of poverty. For seniors, imagine what your life would be like without Social Security benefits and Medicare coverage. Imagine the additional burden placed on family members who would now have to care for senior loved ones without Social Security and Medicare.

DON LEPINSKY

Whitehall, Montana

For those of you who are screaming socialism, you should have turned to the comic section at the beginning of my op-ed. I’m all for Capitalism. Capitalism along with Democracy made the United States the great country it is today. I’m just in favor of a form of Capitalism that serves everyone, not just the rich and powerful. So, this November, you can vote to save Social Security and Medicare, or you can vote Republican so they can stick it to us again with property tax increases and continued tax cuts for the rich. In my opinion, Mr. Sheehy would have no objection, if his business was no longer required to pay its fair share into the Social Security Trust Fund. Unless shown otherwise, I believe the goal and long term Republican plan is to abolish Social Security and Medicare.