The presidential candidates for the 2024 election, Kamala Harris and Donald Trump, faced off in a debate on Tuesday night, providing voters with a chance to compare their platforms before the upcoming election on Nov. 5.
Harris, the Democratic Party’s nominee after President Joe Biden withdrew from the race, used the debate to outline her stance on various issues for undecided voters. As the election approaches, many voters, especially older Americans, are considering how each candidate’s policies could impact their financial security, particularly concerning Social Security and Medicare.
In this guide, we will explore the positions of Harris and Trump on Social Security and Medicare, as well as touch on some of Biden’s policies, given the similarities between Harris’ campaign and the president’s platform on certain issues.
Social Security
Social Security, a vital component of the American social safety net established in 1935, provides financial assistance to retirees, disabled individuals, and others. However, the program faces challenges, with the Social Security Trust Fund projected to be depleted by 2035 if no action is taken.
The looming insolvency is attributed to demographic changes such as an aging population and declining birth rates, resulting in fewer workers supporting a growing number of retirees.
Addressing these financial challenges will require bipartisan political will to increase revenues for Social Security, according to Christian Weller, a senior economist and professor of public policy at the University of Massachusetts, Boston.
Calculator: Estimate your amount of Social Security benefits
Where Harris stands on Social Security
Leading up to the debate, the Harris campaign published a set of policy priorities, highlighting her commitment to strengthening Social Security by ensuring that millionaires and billionaires pay their fair share in taxes. This likely involves extending the Social Security payroll tax to higher incomes beyond the current cap of $168,600 in 2024.
Although Harris did not focus much on Social Security during her 2020 primary campaign, she co-sponsored the Social Security Expansion Act in 2019, proposing to extend the payroll tax to incomes over $250,000 a year.
Where Biden stood on Social Security
During his presidency, Biden vowed not to cut Social Security benefits and emphasized his dedication to protecting and enhancing the program. He proposed raising taxes on the wealthy to ensure the program’s solvency, particularly by subjecting earnings over $400,000 to Social Security payroll taxes.
Despite these promises, Biden did not implement significant changes to Social Security during his presidency.
Where Trump stands on Social Security
Trump’s stance on Social Security has been less clear, as he has promised to protect benefits without detailing specific plans to ensure the program’s long-term viability without cutting benefits or raising taxes. He has suggested that a stronger economy would naturally support Social Security by boosting payroll tax revenues through economic growth and job creation.
However, experts argue that economic growth alone may not be sufficient to address Social Security’s challenges, emphasizing the need for strong wage growth as well.
While Trump has at times hinted at potential benefit cuts, he has also emphasized his commitment to safeguarding benefits. His recent proposal to eliminate federal taxes on Social Security income could accelerate the program’s insolvency.
Earlier in his career, Trump advocated for privatizing Social Security and raising the retirement age, positions he later abandoned during his presidential campaigns.
Medicare
Medicare, the federal health insurance program primarily for individuals aged 65 and older, is also facing financial challenges, with the Hospital Insurance Trust Fund projected to be depleted by 2036 without intervention. Rising healthcare costs, an aging population, and increased enrollment contribute to Medicare’s financial strain.
Where Harris stands on Medicare
During the debate, Harris highlighted her commitment to protecting Social Security and Medicare, drawing attention to the Biden administration’s accomplishments in Medicare policy. She emphasized allowing Medicare to negotiate drug prices on behalf of beneficiaries and pledged to ensure that Americans receive the benefits they have earned.
While Harris previously supported a “Medicare For All” plan in the 2020 election cycle, she is now more likely to align with Biden’s Medicare policies, focusing on issues such as curbing drug prices and cracking down on pharmaceutical companies.
Where Biden stood on Medicare
Biden enacted significant reforms to Medicare during his presidency, including measures to lower prescription drug costs by allowing Medicare to negotiate prices directly with pharmaceutical companies. These reforms are expected to save billions of dollars for the government and beneficiaries over the next decade.
Biden’s legislation also caps annual out-of-pocket costs for Part D prescription drug beneficiaries at $2,000 starting in 2025, with additional price negotiations phased in over time.
He directed savings from these measures to Medicare’s Hospital Insurance Trust Fund to extend its solvency.
Where Trump stands on Medicare
Similar to his approach to Social Security, Trump has vowed to protect Medicare benefits without offering detailed plans to address the program’s financial challenges. While his administration proposed initiatives to reduce healthcare costs for beneficiaries, such as increasing price transparency and lowering prescription drug prices, these efforts had a limited impact on Medicare’s long-term funding.
Trump has opposed cuts to Medicare benefits and advocated for addressing waste, fraud, and abuse within the system to save money. However, he did not implement significant reforms to address Medicare’s financial issues during his presidency.
Despite his promises to protect Medicare, Trump’s administration did not enact substantial changes to address the program’s financial strain.
Voting trends of older Americans
Older Americans constitute a significant voting bloc in presidential elections, with their votes having a substantial impact on the outcome of competitive races. Candidates often focus on issues important to older Americans, such as Social Security, Medicare, and prescription drug costs, as proposals to alter these programs are generally unpopular among voters.
Seniors’ high voter turnout underscores the importance of addressing issues central to their financial security, as Social Security benefits are viewed as a promise to individuals who have contributed to the program throughout their careers.
How much control does the president have over Social Security?
While the president does not have legislative power to change Social Security’s tax rate or benefits, they can influence Congress to introduce and advocate for significant reforms. Social Security is managed separately from the federal budget and is governed by laws that can only be modified through legislative action.
Despite proposals from both parties to reform Social Security, no significant changes have been enacted into law. The ultimate authority to reform Social Security lies with Congress, not the president.
Bottom line
Social Security and Medicare are critical safety nets for millions of Americans, and the candidates’ positions on these programs are likely to be scrutinized by voters. While it is essential to consider the candidates’ stances, it is important to remember that Congress holds the power to enact reforms to these vital programs, not the president.