By Howard Koplowitz
al.com
(TNS)
(Dec. 11) U.S. Sen. Tommy Tuberville on Wednesday called one of the federal government’s most successful initiatives a “big Ponzi scheme.”
Tuberville claimed Donald Trump and the president-elect’s pick to run the Social Security Administration will bring much needed reform to the retirement program.
“One of the big reasons why the American people elected President Trump … to be the next president of the United States is because they are tired of being scammed by the federal government,” Tuberville said Wednesday on the Senate floor.
“What the American people have been tired of for years—decades, even—is how they have been getting scammed out of their retirement money—the money that they pay into this government.”
While Tuberville said Trump’s promises to maintain the Social Security retirement age of 62 (or 67 to receive full benefits) and eliminate taxes on Social Security will improve the program, the nonpartisan group Committee for a Responsible Budget found the president-elect’s policies “would dramatically worsen Social Security’s finances.”
“President Trump’s proposals to eliminate taxation of Social Security benefits, end taxes on tips and overtime, impose tariffs, and expand deportations would all widen Social Security’s cash deficits,” the group said in October.
The Treasury Department’s latest Social Security and Medicare Trustees Report projected the Social Security Trust Fund would be depleted in 2035.
Once its funds are depleted, Social Security would be in the position to pay 83% of scheduled benefits, a higher percentage than indicated in previous years.
Tuberville claimed retirees are not getting fair value from Social Security, pointing out Americans are double taxed: when Social Security taxes are taken out of their paychecks and when they pay taxes on their Social Security checks in retirement.
“Here’s the sad truth: the American people don’t have any confidence that they will see all the money they paid into Social Security over the years,” he said.
“It’s a big Ponzi scheme, and everyone is forced to participate in it; you have no choice. It doesn’t matter if you’re 16 or 76. A little over 6% of your paycheck is taken out to pay for this retirement. Americans have been paying for Social Security for years only to see a fraction of what they have been promised to be returned to,” Alabama’s senior senator continued.
Tuberville said Washington may be filled with protesters if Congress doesn’t fix Social Security.
“We better start figuring this problem out because one of these days, millions of people are going to come to D.C. and say, ‘where is my money?’ and I don’t blame them. I don’t blame them one bit,” he said. “We seem to be spending on everything but retired American workers.”
Alabama’s senior senator said he has confidence in Trump and Social Security Administration nominee Frank Bisignano, the CEO of the financial tech company Fiserv, to right the ship.
“If he doesn’t,” Tuberville said, referring to Bisignano, “we’ll change him.”
Social Security has long been a target of Tuberville’s ire.
In May, the senator railed against the “scam.”
“No, most people won’t get Social Security,” Alabama’s senior senator, a Republican, told Newsmax TV’s “Carl Higbie FRONTLINE.”
“It’s just unfortunate,” Tuberville told Higbie, according to the station. “It was a tax that was levied on the American people years ago, sold a bill of goods. Hey, we’re going to take care of your retirement.”
During a Senate hearing in February, Tuberville said he paid $1 million into Social Security and receives $3,000 a month from the program.
He claimed he could have $8 million to $10 million if he had been able to invest his Social Security taxes privately “but the federal government wasted” his contributions.
“This is all a scam. I mean, we got people who are ready to retire that’s going to try to live off $2,000 to $3,000—impossible,” he said. “With $35 trillion in debt, we don’t have any of your money. We’re dead broke.”
©2024 Advance Local Media LLC. Visit al.com. Distributed by Tribune Content Agency LLC.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
Tags: Benefits, Human Resources, Payroll
