Senate Tees Up $200 Billion Social Security Giveaway to Public Sector Workers
The Senate is reportedly set to vote on a bill boosting Social Security payouts to public sector workers who receive pensions and did not pay taxes to support Social Security.
If it passes, the proposal will cost nearly $200 billion and will hasten the insolvency of Social Security for all beneficiaries—the vast majority of which do not have a taxpayer-funded pension to rely upon.
A final vote on the Social Security Fairness Act is expected this week, and possibly as soon as Monday. Senate Majority Leader Chuck Schumer (D–N.Y.) told reporters last week that he is urging senators to back the proposal. With 62 cosponsors in the Senate, the bill has a good chance at passing. The House’s version of the bill passed by a wide margin earlier this year, so a Senate vote could send it to President Joe Biden’s desk.
The Social Security Fairness Act would eliminate two existing provisions that reduce Social Security benefits for some workers (and their spouses) who do not pay Social Security taxes: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
The WEP was implemented as part of the 1983 overhaul of Social Security, and for good reason. Before that, some public workers who paid little into Social Security during their careers would end up collecting relatively large Social Security benefits. The GPO applies to the spouses of those same public workers.
Eliminating the WEP and the GPO will cost $195 billion over the next 10 years, according to a Congressional Budget Office (CBO) review of the bill. That’s because this change will obligate the payment of more Social Security benefits to people who are not paying into the system.
The CBO also projects that Social Security will be insolvent—that is, unable to pay full promised benefits—within just nine years. So using the typical 10-year budget window to assess the cost of this maneuver is a bit overly optimistic.
“It is truly astonishi
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
