Here we go, folks! First stop, gutting Social Security. You knew it was coming, and Republicans just set out the carving knives.
The incoming GOP majority approved late Tuesday a new rule that experts say could provoke an unprecedented crisis that conservatives could use as leverage in upcoming debates over entitlement reform.
The largely overlooked change puts a new restriction on the routine transfer of tax revenues between the traditional Social Security retirement trust fund and the Social Security disability program. The transfers, known as reallocation, had historically been routine; the liberal Center for Budget and Policy Priorities said Tuesday that they had been made 11 times. The CBPP added that the disability insurance program "isn't broken," but the program has been strained by demographic trends that the reallocations are intended to address.
The House GOP's rule change would still allow for a reallocation from the retirement fund to shore up the disability fund -- but only if an accompanying proposal "improves the overall financial health of the combined Social Security Trust Funds," per the rule, expected to be passed on Tuesday. While that language is vague, experts say it would likely mean any reallocation would have to be balanced by new revenues or benefit cuts.
House Democrats are sounding the alarm. In a memo circulated to their allies Tuesday, Democratic staffers said that that would mean "either new revenues or benefit cuts for current or future beneficiaries." New revenues are highly unlikely to be approved by the deeply tax-averse Republican-led Congress, leaving benefit cuts as the obvious alternative.
Hello, Shock Doctrine? Time to get your copy out and re-read it, because the knives are sharpened and the table is set, with retirees listed as the main course.
Haven't read it? Better read it right now.