The LuLac Edition #5, 369, June 28th, 2025

 

TRUMP TAX CUTS

 MIGHT SHORTEN THE

LIFE OF SOCIAL SECURITY

The Social Security Board of Trustees said last week that the program’s combined trust funds will run out of money in 2034 — one year earlier than was projected in 2024. Without a fix, the trustees’ report said, the venerable program may have to reduce retirement benefits by almost one-fourth in less than a decade.

Though Social Security counts over 73 million people as beneficiaries, the news went largely unremarked in Washington. And to be fair, there’s been a lot going on. But soon enough, Social Security will face a funding crisis — and President Donald Trump’s approach will only make matters worse.

Trump has plunged ahead with policy proposals that risk moving the depletion date closer.

First, a bit of a background: Social Security is (primarily) a pay-as-you-go system — payroll taxes on today’s workers fund benefits for today’s retirees. From 1983 — the last time the program’s finances were overhauled — until 2021, Social Security took in more than it paid out. Beginning that year, thanks to demographic changes, benefits exceeded revenues, and Social Security began drawing down its two trust funds, one for disability benefits and a much larger one for retiree and survivor benefits. The trust fund for retirement benefits is projected to be depleted in 2033, and drawing on the disability trust fund (which requires congressional approval) buys Social Security only an extra year.

The immediate cause of the depletion date’s moving forward was the Social Security Fairness Act, which eliminated provisions that reduced benefits for teachers, firefighters, police officers and other public workers who receive pensions. That law, which passed Congress with bipartisan majorities in both chambers, brought the depletion date forward by about six months. But the new law is just a fraction of the total shortfall — an average of about $330 billion per year over the next 75 years.

If nothing is done, retirement benefits won’t disappear entirely, but only 77% of those benefits would be payable, according to the trustees’ report. Any interruption or significant reduction in benefits would be catastrophic for millions of people. As of 2015, Social Security provided at least half the income of roughly 40% of retirees (and at least 90% of the income for 1 in 7 retirees).

Right now the Trump tax cuts, the ballooning deficit needs to be watched closely.  It will be a damn miracle if I’m around in 2034 but most of us boomers are concerned about the future.  (MSNBC, LuLac)

 

THE NEW YORK

MAYORAL

CRAP SHOOT

The recent selection of  Mr. Zorhan as the leading contender for Mayor might be a short lived victory for the progressive Democratic wing of the party.  But it will not be good in the long run. The GOP lie machine will have a field day with his stances that will seem too extreme.

When the dust settles this race may return Eric Adams for another term or Curtis Sliwa as the first Republicans Mayor since   Mike Bloomberg.

My old boss Tom Joseph used to say “This is a middle of the road country”. So too with a city as diverse and big as New York.