With Republicans controlling both the Senate and the House in Washington, threats of Social Security and Medicare benefits being slashed has some concerned. John Mulvaney, former South Carolina Congressman, was selected to run the Office of Management and Budget. Mulvaney’s move to “reform” Social Security is often referred to as his synonym for cutting benefits. Marketplace’s senior economics contributor Chris Farrell says that with Republicans controlling of both houses of Congress, the idea of cuts to Social Security and Medicare is “within grasp.”
Farrell notes that President Trump has stood by his belief that there’s no reason to slash Social Security. The president believes that most recipients are satisfied with their Social Security income and they have earned the money. For that reason, Farrell says despite Mulvaney or Speaker of the House Paul Ryan’s plans for the future of Social Security, Trump will maintain his position and not approve a cut. Paul Ryan does have some authority in his position, but Farrell says it’s simply not enough to change Medicare, which Ryan has been determined to do. Ryan backs the “premium support” Medicare theory – providing a fixed-dollar subsidy seniors would use to pay for Medicare insurance. Critics believe the premium support plan would shift the majority of heath care costs onto seniors rather than tax payers. Farrell says those who are pleased with the current Medicare system may not have much to worry about. He predicts that President Trump is in tune with the needs of the working class and recognizes that a drastic change to Medicare isn’t needed. The conversation on restructuring Medicare is one that hasn’t found much ground outside of Washington D.C., and Farrell says for that reason, there likely won’t be a huge upheaval. Mulvaney’s demand for “fundamental changes” with Social Security and Medicare are still a very real fear for some Americans. The Democrats vow to resist any change to either system, but Mulvaney’s advantage is having President Trump’s ear. As the next four years unfold, we’ll see if the president sticks to his campaign promises or if Mulvaney will be able to sway him in another direction. Social SecurityDo you have additional questions? Do you want to know how this might affect you? Call us. Set up a free consultation today. The post How Social Security Will Change Under President Trump appeared first on Foguth Financial Group. from http://www.foguthfinancial.com/how-social-security-will-change-under-president-trump/
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