Cassidy Warns of 28.5% Social Security Cut, Proposes $1.5 Trillion Fund
Updated
Updated · Yahoo! Voices · Oct 9
Cassidy Warns of 28.5% Social Security Cut, Proposes $1.5 Trillion Fund
2 articles · Updated · Yahoo! Voices · Oct 9
Summary
Six years from now, Social Security benefits could be cut 28.5% if Congress does not act before the trust fund becomes insolvent, Sen. Bill Cassidy said.
Cassidy argued borrowing to cover the gap would badly damage the economy, saying Social Security's unfunded liability equals about 20% of national debt and could rise to 24%.
His alternative is a separate pension investment fund seeded with $1.5 trillion over five years—$250 billion annually—which he said could cover 60% to 70% of the unfunded liability over 65 to 75 years.
Cassidy said the plan would need bipartisan backing to clear the Senate's 60-vote threshold, and added that a 28.5% benefit cut would double elderly poverty.
He also said the bipartisan PROMISE Act he introduced with Sen. Dick Durbin in July is running out of time to work, though he wants to keep pursuing a broader fix.