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Schakowsky Statement on Social Security/Medicare Trustees Report

July 28, 2014

Washington, D.C.– “Today’s Trustees report shows that Medicare and Social Security are strong and can continue to provide guaranteed, earned benefits for decades to come.

According to the Trustees, Social Security’s current $2.8 trillion surplus will grow to $2.9 trillion by 2020. It can pay full benefits through 2033, 75% of benefits after that. Improvements we made to Medicare in the Affordable Care Act – including unprecedented new anti-fraud tools – have extended the life of its Trust Fund another 4 years to 2030.

We have a two-fold job ahead of us. First, we must block proposed changes to reduce Social Security and Medicare benefits – cutting seniors’ income while increasing their out-of-pocket medical costs. Second, we need to strengthen Social Security and Medicare by improving benefits.

Those who argue we need to cut benefits are just plain wrong and would take us in the wrong direction. By lifting the current $117,000 cap on wages subject to the Social Security tax, lowering prescription drug prices to reasonable levels through Medicare price negotiation authority, and asking millionaires and billionaires to pay their fair share, we can improve earned benefits and keep Social Security and Medicare solvent for the next 75 years. With the decline in pensions and retirement savings, Social Security remains the only firm leg of what was supposed to be a three-legged retirement stool, it is more important than ever that we take those steps.”

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Issues:Health