Treasury Secretary Janet Yellen admitted she doesn’t know what the tax rate should be to cover President Joe Biden’s proposed tax increases for those earning more than $400,000 to provide for Social Security.
During the Senate Finance Committee hearing Thursday, Yellen pledged that the president is willing to work with Congress to put together a plan to address Social Security. This plan reportedly involves collecting 4.5 trillion in taxes from people making more than $400,000. Biden also pledged to fix Medicare, the national debt, and Social Security.
Senator Bill Cassidy explained that “the president has proposed in the past to raise taxes on those who make more than $400,000 to pay it.” “What rates should be on the 2 percent of Americans who earn over $400,000 to do Medicare, debt and disability, and also to address the 75-year shortfall in Social Security?”
Yellen responded to Biden, who pledged to raise taxes on high-income earners.
“Do you think it’s realistic? [Biden] He could pay for Medicare, debt, and disability costs, as well as address social shortfalls for 75 years just by… higher taxes on those who earn more than 2% [in the tax bracket]? Cassidy repeated. “I’m sure there are expectations of how good those have to be. Can you tell us what those rates would have to be to do everything it says? “
“I can’t tell you that,” Yellen admitted.
Cassidy replied, “If you can’t tell me I suppose they are [the White House] He didn’t actually design what those rates should be, which tells me he didn’t develop his plan to “protect Social Security,” he said, implying that Social Security recipients would get a 24 percent cut in nine years unless the program was subsidized higher.
“The president is fully committed to protecting seniors who depend on Social Security,” Yellen claimed.
As a senator, Biden introduced legislation that would repeal all federal programs, including Social Security, every four years when he was a freshman United States Senator in 1975. “When I argued that federal spending should be frozen, I meant guarantee Social too,” then O. Biden said on the Senate floor.
Since then, Biden has reversed course, claiming he aims to protect seniors, though Cassidy suspects he has a plan.
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