House Republicans Propose Social Security and Medicare Overhaul in New Budget

Social Security To Increase Payments By Largest Amount In 40 Years — WASHINGTON, DC - OCTOBER 14: In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, DC. The Social Security Administration announced recipients will receive an annual cost of living adjustment of 5.9%, the largest increase since 1982.
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House Republicans have put together a new budget that calls for changing Medicare and raising the age at which people can retire from Social Security.

The proposals, which are not likely to be signed into law this year, show how many Republicans want to be in charge if they win the 2024 race. These things add to the fight that President Joe Biden wants to have with former President Donald Trump and the Republican Party as he runs for re-election.

Budget Proposes Minor Social Security Adjustments

A budget was released on Wednesday by the Republican Study Committee (RSC), featuring bills that aim to promote the preservation of life, including the Life at Conception Act.

The RSC, led by Rep. Kevin Hern of Oklahoma and Speaker Mike Johnson of Louisiana, has faced criticism due to its controversial reputation.

In regard to Social Security, the budget allows for some minor adjustments to be made to the retirement age for future seniors in order to take into account increases in life duration.

Additionally, the budget asks for a reduction in payments for the recipients who make the most money. The RSC Budget does not reduce or extend retirement benefits for any senior citizen who is now in retirement or is very close to retirement.

Also, the new budget seeks to transform Medicare into a "premium support model," which is a plan that Paul Ryan, a former speaker of the Republican Party, has effectively gained support for via his efforts.

In accordance with the new RSC plan, traditional Medicare would be challenged by private plans, and members would get help with incentives that allowed them to shop for the policies that best suited their needs. It is possible that the amount of the subsidies could be tied to the "average premium" or the "second lowest price" in a specific market, according to Bloomberg.

Biden's Budget Calls for Medicare Tax Increase

According to projections, Medicare is expected to face financial difficulties by 2028, with Social Security following suit in 2033. Without additional revenues, benefits will face mandatory reductions.

In his recent White House budget, Biden strongly condemned Republican proposals for retirement programs. He made a firm guarantee not to cut benefits and instead suggested addressing the future shortfall by increasing taxes on higher earners.

Biden's proposed budget for fiscal 2025 advocated for boosting the Medicare tax rate on individuals earning above $400,000 annually from 3.8% to 5%.

It additionally contained an overall recommendation for higher-earning individuals to contribute more towards Social Security, although no detailed plans were provided.

The matter has emerged as a contentious issue resulting up to the 2024 presidential election. The Biden campaign identified a recent interview on CNBC featuring former President Trump, in which he discussed the possibility of implementing cuts.

Trump took to social media to respond, asserting, "Not on my watch." However, Trump later reversed his statements, assuring that he would not take any actions that could endanger or harm Social Security or Medicare, The Hill reported.