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Senate Finance Committee Member Speaks Out Against Social Security “Crisis”

February 13, 2015

Speaking out about the so-called Social Security "crisis"


This week, Senate Finance Committee Ranking Member Ron Wyden (D-Ore) issued a statement about the manufactured Social Security crisis from the Republican house. He claims that the Republicans are using “alarmist rhetoric” to create chaos rather than finding solutions when it comes preserving the Social Security disability trust fund to prevent benefit cuts in 2016. 


In January, Republicans in the House added a new rule in their legislation that prevents a reallocation from Social Security’s old-age program to the disability program (SSDI) without benefit cuts or tax increases. Without a reallocation of funds, Social Security disability recipients could see a 20 percent cut in their benefits in 2016.


Senator Wyden asserts that there needs to be realistic solutions for the Social Security program, but parties must agree on a few things.


“First, the trust fund supporting SSDI is not in crisis,” he said. “After the last trust fund adjustment in 1994, the Social Security Trustees projected in 1995 that the fund would need to be adjusted in 2016. Second, transfers aren’t uncommon – it’s been done 11 times before under both Democratic and Republican presidents. The SSDI trust fund has performed as expected and the funding adjustment President Obama has requested will guarantee its benefits for retirees, veterans and individuals with disabilities for another 18 years. That’s plenty of time to work in a smart, rational way to find and make changes that ensure Social Security’s fiscal health while protecting benefits that millions of Americans deserve and have earned.” 


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