In his State of the Union address, President Joe Biden pledged to prevent any reduction in Social Security or Medicare benefits. However, according to Brian Riedl, a senior fellow at the Manhattan Institute, this could result in an increase in taxes for the middle class. Riedl expressed this viewpoint in The Wall Street Journal. Biden also vowed during his address that families earning less than $400,000 would not face a tax increase.
Social Security and Medicare are more than government programs. They’re a promise we made: Work hard and contribute, and when the time comes for you to retire, we’ll be there to help you out.
It’s simple. If anyone tries to cut Social Security or Medicare, we will stop it.
— Joe Biden (@JoeBiden) February 14, 2023
Over the next 30 years, Social Security and Medicare are both expected to experience significant shortfalls, with a projected $48 trillion deficit for Social Security and a $21 trillion deficit for Medicare. Unfortunately, this means that unless benefits are reduced, significant tax hikes are almost inevitable. Brian Riedl has argued that President Biden’s assertion that full benefits can be sustained without increasing taxes for 98% of families is not supported by mathematical reality.
Riedl further examined the issue and concluded that even if Congress imposed extremely high taxes on wealthy taxpayers, the new revenue would still not be enough to cover the costs of Social Security and Medicare over the next three decades. He suggested that the only way to avoid these massive tax hikes would be to raise the eligibility age and reduce the growth of benefits for retirees who are not poor.
The White House did not respond to the Daily Caller News Foundation’s request for comment. It is clear that the issue of Social Security and Medicare is a complex one, and it will take careful consideration and analysis to ensure that the best possible outcome is achieved. It is possible that a combination of tax hikes and benefit cuts could be necessary in order to keep these programs running for years to come.
At this time, it is unclear what the future holds for Social Security and Medicare. President Biden has promised to protect these programs, but it remains to be seen if he can make good on his promise without raising taxes on the middle class. It is certain that this is an issue that will require much debate and discussion in the coming months and years.
The preceding article is a summary of an article that originally appeared on The Daily Caller