Economic expert Casey Mulligan of the University of Chicago cited a newly published study from the Committee to Unleash Prosperity to explain that President Joe Biden's "anti-growth" policies will reduce tax revenue to Social Security and Medicare by $400-900 billion over the next few years.
"Joe Biden has pledged many times that he will not cut Social Security and Medicare benefits — and has even accused Republicans of a secret plan to cut these programs for seniors," the report stated. "But the real risk to the financial security of Americans in retirement comes from Biden's anti-growth welfare, regulatory, tax and employment policies that will reduce GDP, growth, work and wages."
The study showed that much of the decline in tax revenue comes from stagnation in real wages and a $4 trillion loss in retirement savings since Biden took office.
"Today's benefits are paid for out of today's worker wages and tomorrow's benefits (and thereafter) are paid out of future wage growth. Quite literally, the programs give the elderly a share of the earnings of the nation's workers," Mulligan said.
The result: fewer people working and workers earning less means less tax revenue for the entitlement programs.
"Because Social Security and Medicare operate on a 'pay as you go' basis, benefits will be severely squeezed in the years to come as Congress struggles to figure out how to make up for this worsening structural deficit. Even before that happens, less national labor income translates to lower Social Security benefits, lasting the rest of their lives, for every worker reaching retirement age," she concluded.