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alliance for retired americans
Bessent Admits Trump Tax Scam Offers 'Backdoor for Privatizing Social Security'
"Despite their repeated claims they wanted to protect Social Security, the Trump administration said the quiet part out loud," said one critic in response to the billionaire treasury secretary's candid comments.
Jul 30, 2025
U.S. Treasury Secretary Scott Bessent on Wednesday admitted that a provision in Republicans' One Big Beautiful Bill Act is a mechanism for privatizing Social Security—something President Donald Trump has repeatedly said he won't do.
Speaking at a policy event hosted by the far-right news site Breitbart, Bessent touted the so-called "Trump accounts" available to all U.S. citizen children starting next July under the OBBBA signed by the president earlier this month.
"In a way, it is a backdoor way for privatizing Social Security," the billionaire former hedge fund manager said of the accounts. "Social Security is a defined benefit plan paid out—that to the extent that if all of a sudden these accounts grow, and you have in the hundreds of thousands of dollars for your retirement, that's a game-changer."
Responding to Bessent's admission, Tim Hogan—the Democratic National Committee senior adviser for messaging, mobilization, and strategy—said that the treasury secretary "just said the quiet part out loud: The administration is scheming to privatize Social Security."
"It wasn't enough to kick millions of people off their healthcare and take food away from hungry kids," Hogan added. "Trump is now coming after American seniors with a 'backdoor' scam to take away the benefits they earned. Democrats won't stand by as Trump screws over working families in order to give more handouts to billionaires."
House Ways and Means Committee Ranking Member Richard Neal (D-Mass.) said in a statement: "Today, the treasury secretary said the quiet part out loud: Republicans' ultimate goal is to privatize Social Security, and there isn't a backdoor they won't try to make Wall Street's dream a reality. For everyone else though, it's yet another warning sign that they cannot be trusted to safeguard the program millions rely on and have paid into over a lifetime of work."
Nancy Altman, president of the advocacy group Social Security Works, mocked Trump's promises to preserve the key program upon which more than 70 million Americans rely—and called him out for eviscerating the Social Security Administration (SSA).
"So much for Donald Trump's campaign promise to protect Social Security," Altman said in a statement. "First, he gave Elon Musk the power to gut SSA. Now, Trump's treasury secretary has said the quiet part out loud. He is bragging about the administration's goal to privatize Social Security."
"First, they are undermining public confidence in Social Security by making false claims about fraud (which is virtually nonexistent) and wrecking the system's service to the public," Altman continued. "Then, once they have broken Social Security, they will say that Wall Street needs to come in and save it."
"That is a terrible idea," she added. "Unlike private savings, Social Security is a guaranteed earned benefit that you can't outlive. It has stood strong through wars, recessions, and pandemics. The American people have a message for Trump and Bessent: Keep Wall Street's hands off our Social Security!"
Alliance for Retired Americans executive director Richard Fiesta said that "Bessent let the cat out of the bag: This administration is coming for Social Security."
"We're not surprised—but we are alarmed because this administration has already taken multiple steps to weaken and dismantle Social Security," Fiesta added, highlighting the weakening of the SSA, false fraud claims, and "the massive tax breaks to the wealthy and corporations" under the OBBBA that experts say will hasten the Social Security Trust Fund's insolvency.
The progressive watchdog Accountable.US called Bessent's remarks "a shocking confession."
"Despite their repeated claims they wanted to protect Social Security, the Trump administration said the quiet part out loud: The Big Ugly Betrayal is a backdoor way to privatize Social Security," Accountable.US executive director Tony Carrk said in a statement.
"Once again the administration is risking the financial security of millions of Americans in order to protect a system rigged in the favor of big corporations and billionaires," Carrk added.
In another blow to Social Security recipients, the Trump administration is set to implement a new policy next month that is expected to further increase wait times for basic services. As Common Dreams reported Wednesday, starting in mid-August, SSA will no longer allow seniors to use their phones for routine tasks they've been able to perform for decades.
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In 'Serious Blow to Our Democracy,' Supreme Court Allows Trump Mass Firing Order
The high court's decision to "release the president's wrecking ball at the outset of this litigation," said Justice Ketanji Brown Jackson, "is not only truly unfortunate but also hubristic and senseless."
Jul 08, 2025
The U.S. Supreme Court on Tuesday lifted a block on U.S. President Donald Trump's February executive order directing federal agency leaders to "promptly undertake preparations to initiate large-scale reductions in force" and a related memorandum.
In response to a lawsuit filed by a coalition of labor unions, local governments, and nonprofits, Judge Susan Illston—appointed to the U.S. District Court for the Northern District of California by former President Bill Clinton—had issued a temporary restraining order and then a preliminary injunction, which was upheld by the 9th Circuit Court of Appeals in May.
That legal battle led to the Supreme Court's shadow docket, where emergency decisions don't have to be signed. The Tuesday opinion from the high court's unidentified majority states that Illston's injunction was based on a view that Trump's order implementing his Department of Government Efficiency (DOGE) "Workforce Optimization Initiative" and a joint memo from the Office of Management and Budget and the Office of Personnel Management "are unlawful."
"Because the government is likely to succeed on its argument that the executive order and memorandum are lawful—and because the other factors bearing on whether to grant a stay are satisfied—we grant the application," the Supreme Court continued, emphasizing that the justices did not weigh in on the legality of any related agency reduction in force (RIF) and reorganization plans.
BREAKING: The Supreme Court allows the Trump administration to resume agency mass-firing plans over the dissent of Justice Jackson, who criticized "this Court’s demonstrated enthusiasm for greenlighting this President’s legally dubious actions in an emergency posture." More to come at Law Dork:
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— Chris Geidner (@chrisgeidner.bsky.social) July 8, 2025 at 3:54 PM
Only Justice Ketanji Brown Jackson publicly dissented on Tuesday. Another liberal, Justice Sonia Sotomayor, wrote in a short concurrence that "the plans themselves are not before this court, at this stage, and we thus have no occasion to consider whether they can and will be carried out consistent with the constraints of law. I join the court's stay because it leaves the district court free to consider those questions in the first instance."
Meanwhile, Jackson argued that "given the fact-based nature of the issue in this case and the many serious harms that result from allowing the president to dramatically reconfigure the federal government, it was eminently reasonable for the district court to maintain the status quo while the courts evaluate the lawfulness of the president's executive action."
She continued:
At bottom, this case is about whether that action amounts to a structural overhaul that usurps Congress' policymaking prerogatives—and it is hard to imagine deciding that question in any meaningful way after those changes have happened. Yet, for some reason, this court sees fit to step in now and release the president's wrecking ball at the outset of this litigation.
In my view, this decision is not only truly unfortunate but also hubristic and senseless. Lower court judges have their fingers on the pulse of what is happening on the ground and are indisputably best positioned to determine the relevant facts—including those that underlie fair assessments of the merits, harms, and equities. I see no basis to conclude that the district court erred—let alone clearly so—in finding that the president is attempting to fundamentally restructure the federal government.
Mark Joseph Stern, who covers the courts for Slate, said on social media that "Justice Jackson's criticism is spot-on, of course. But as Justice Sotomayor's concurrence suggests, SCOTUS' order looks like a negotiated compromise that leaves the district court room to block future RIFs and agency 'restructuring.' So the damage is limited."
"The real test will be what happens once agencies start to develop and implement plans for mass firings—which will, by and large, be illegal," he warned. "District courts still have discretion, for now, to stop them. Will SCOTUS freeze their orders and let unlawful RIFs and restructurings proceed? I fear it will."
Trump’s firings at federal agencies have upended the lives of thousands of workers.These are the people who oversee air safety, food and drug safety, disaster response, public health, and much more.Replacing civil servants with Trump loyalists is right out of Project 2025.
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— Robert Reich (@rbreich.bsky.social) July 8, 2025 at 5:13 PM
The coalition that challenged the order and memo includes the American Federation of Government Employees and four AFGE locals; American Federation of State, County, and Municipal Employees (AFSCME); Service Employees International Union and three SEIU Locals; Alliance for Retired Americans; American Geophysical Union; American Public Health Association; Center for Taxpayer Rights; Coalition to Protect America's National Parks; Common Defense; Main Street Alliance; Natural Resources Defense Council; Northeast Organic Farming Association Inc.; VoteVets; and Western Watersheds Project.
It also includes the governments of Baltimore, Maryland; Chicago, Illinois; Harris County, Texas; King County, Washington; and both San Francisco and Santa Clara County in California.
"Today's decision has dealt a serious blow to our democracy and puts services that the American people rely on in grave jeopardy," the coalition said Tuesday. "This decision does not change the simple and clear fact that reorganizing government functions and laying off federal workers en masse haphazardly without any congressional approval is not allowed by our Constitution."
"While we are disappointed in this decision," the coalition added, "we will continue to fight on behalf of the communities we represent and argue this case to protect critical public services that we rely on to stay safe and healthy."
Congressman Robert Garcia (D-Calif.), ranking member of the House Committee on Oversight and Government Reform, was similarly critical but determined on Tuesday.
"The Trump-appointed Supreme Court just surrendered to a dangerous vision for America, letting the administration gut federal agencies by firing expert civil servants," he said. " The damage from these mass firings will last for decades, and weaken the government’s ability to respond to disasters and provide essential benefits and services. Oversight Democrats will not sit back as Trump turns the court into a political weapon. We will keep fighting to protect the American people and prevent the destruction of our federal agencies."
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Social Security Defenders Say Trustees Report Shows Expansion—Not GOP Cuts—Is Path Forward
"Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts," said one advocate.
Jun 18, 2025
A U.S. government report released Wednesday found that the combined Social Security trust funds will not be able to pay out full benefits to recipients come 2034, unless federal lawmakers act—an announcement that prompted defenders of Social Security to call for increased revenue for the social safety net program.
The report from the trustees of the Social Security and Medicare trust funds found that the former's two funds will be exhausted a year earlier than expected, and when that happens payroll tax revenue and other income sources will be able account for 81% of benefits owed to beneficiaries.
According to the report, the two funds—the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance Trust Fund—could "not actually be combined unless there were a change in the law, but the combined projection of the two funds is frequently used to indicate the overall status of the Social Security program."
The OASI Trust Fund will pay 100% of total scheduled benefits until 2033, after which point the program income will be able to pay 77% of total scheduled benefits. At the end of last year, 60.1 million people received OASI benefits.
The report states that the Social Security Fairness Act, an expansion to the program that was signed into law in early January, is part of the reason for the gloomier financial outlook.
Social Security has "a modest funding shortfall, which is still years away. There is no question Congress will act to avert the shortfall, as it always has in the past. The question is what Congress will do," said Nancy Altman, president of the advocacy group Social Security Works, in a statement on Wednesday.
"There are two options for action: bringing more money into Social Security, or reducing benefits. Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts," she continued.
Max Richtman, president and CEO of the advocacy group the National Committee to Preserve Social Security and Medicare, struck a similar line on Wednesday.
"What's needed—and what the majority of the American people support—is increasing revenue flowing into Social Security, which has been capturing a declining share of income as wealth inequality worsens," he said. He noted that "the payroll wage cap" is depriving the system of adequate revenue. Wages up to $176,100 are taxed at 6.2% for Social Security as of 2025.
"It is time to adjust the payroll wage cap so that the wealthy begin paying their fair share," according to Richtman.
Advocates also used the release of the report to denounce any targeting of Social Security, especially efforts to undermine the Social Security Administration carried out by the so-called Department of Government Efficiency (DOGE).
During the first few months of Donald Trump's second presidency, billionaire Elon Musk, who was tapped to lead DOGE, and his allies fanned a false narrative alleging rampant fraud at the Social Security Administration, and used those "claims to justify an aggressive effort to gain access to personal information on millions of Americans," according to June reporting from the The New York Times.
Due to pressure from DOGE, nearly 50% of the Social Security Administration's executives and thousands of employees there have left, either by retiring or taking buyouts. Per the Times, as much as 12% of staff is expected to leave because of DOGE's cost-cutting efforts.
"Despite Donald Trump's promise to protect Social Security, Elon Musk's DOGE is undermining it every day," said Altman, referencing the Times' reporting, including the loss of senior executives. "This is an incalculable loss of institutional knowledge and expertise."
Richard Fiesta, the executive director of the Alliance for Retired Americans, also called out DOGE's work at the Social Security Administration, and referenced efforts to raise the Social Security retirement age beyond 67.
While there is no current legislative push to increase the Social Security retirement age, in December three Republican senators voted for a failed amendment that would have gradually raised the Social Security retirement age. Republican Sen. Rand Paul of Kentucky put the amendment forward in response to the passage of the Social Security Fairness Act.
"Republicans in Congress have made clear they are eager to cut the benefits Americans have worked a lifetime to earn," according to Fiesta.
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