WASHINGTON (AP) – Buried in new rules that will govern the House for the next two years is a provision that could force an explosive battle over Social Security’s finances on the eve of the 2016 presidential election.
Social Security’s disability program has been swamped by aging baby boomers, and unless Congress acts, the trust fund that supports it is projected to run dry in late 2016. At that point, the program will collect only enough payroll taxes to pay 81 percent of benefits, according to the trustees who oversee Social Security.
To shore up the disability program, Congress could redirect payroll taxes from Social Security’s much larger retirement fund – as it has done in the past. However, the House adopted a rule Tuesday blocking such a move, unless it is part of a larger plan to improve Social Security’s finances, by either cutting benefits or raising taxes.
Long the third rail of American politics, tinkering with Social Security has never been easy. Throw in election-year politics and finding votes in Congress to cut benefits or raise taxes could be especially difficult.
But if Congress doesn’t act, benefits for 11 million disabled workers, spouses and children would be automatically cut by 19 percent. The average monthly payment for a disabled worker is $1,146, or a little less than $14,000 a year.