“Increasing Social Security benefits is the quickest way to get money out the door during an economic crisis,” Warren wrote in an op-ed for CNBC.com.
Senate Majority Leader Mitch McConnell, R-Ky., put forward a proposal last week that included Social Security income. However, because the plan uses income from 2018 tax returns as a qualifier, it could leave out those who don’t file with the IRS because their income is too low.
“This is not just relief, but it’s stimulus,” Altman said. “These are people with the lowest incomes in the country, … most of them are just above the poverty line, and so they spend the money immediately.”
McConnell’s bill also includes a proposal to suspend employers’ requirement to pay FICA taxes until January, which Altman said is a red flag.
The problem with giving businesses a break on those taxes is that it could hurt Social Security’s funds, which already face a shortfall. Altman said she fears it’s a way to shrink the Social Security program and eventually cut benefits.
“Opponents of Social Security have just been trying to starve the Social Security beast, as they see it,” Altman said. “We should be on very high alert when they talk about cutting FICA.”
Navy Vet