Republican Florida Senator Marco Rubio who claims to be a big "pro life" and "family values man" wrote this cruel and evil bill. He is up for re-election this year.
"In Rubio’s bill, when someone dies before reaching old age, all of the parental benefits they received during their life are deemed overpayments and the SSA makes their estate pay them back.”Wow.
Same guy who wants to eliminate Social Security and Medicare for seniors.
Late last month, Marco Rubio released what he described as a “pro-family framework following the Dobbs decision.” The actual content of the framework is recycled policies Rubio put out many years ago, but they perhaps deserve a second look, especially in light of Rubio’s new framing of them as pro-life benefits.
The Rubio framework has two main welfare benefits in it, the Child Tax Credit (CTC) and a parental leave program, which I will discuss in order below.
Child Tax CreditUnlike the proposed Biden CTC or the child benefit proposed by Members Tlaib and Jones, the Rubio CTC is specifically designed to exclude poor families from the full CTC benefit and to ensure that the poorest families receive nothing at all from the program.
Rubio accomplishes this by making his CTC phase in based on family income, meaning that the more money you earn, the more CTC benefits you receive, up to a certain point. Because of this phase-in, new parents earning less than $29,412 per year are not eligible for the full $4,500 benefit and new parents with no earnings are eligible for absolutely nothing.
It is hard to understand how creating a child benefit that excludes the most desperate families is meant to be a “pro-life benefit” aimed at helping people who, post-Dobbs, are unable to receive abortion services. Abortion is most prevalent among young women with very low or no earnings, including many young women who are still in education. To these women, Rubio offers little to nothing. As is typical with supposedly pro-family Republicans, Rubio’s desire to crush the poor far exceeds any supposed interest he has in an “expansive” pro-life politics.
Parental LeaveRubio’s parental leave program provides 3 months of leave benefits for new parents with the catch that any parent that claims them will have to undergo a reduction in their Social Security old-age benefits to offset what they received for parental leave. Specifically, the Rubio bill states that a parental leave beneficiary will, at retirement, be required to choose between paying those benefits back by having their Social Security check docked for 60 months or paying those benefits back by having every Social Security check docked until they die.
Requiring parents to pay back their leave benefits through lower old-age pension payments is bizarre for a lot of reasons. The benefits in question would cost very little and could almost certainly be funded by increasing the payroll tax by 0.1 to 0.2 percentage points. Is Rubio really so afraid of such a tiny tax bump that he’d rather concoct a complicated clawback scheme that reduces parental retirement income in direct proportion to the number of children a person has?
In 2014, Rubio used to talk a lot about something he called the “parent tax penalty,” which he said justified the creation of family welfare benefits:
It would also take aim at another pernicious distortion—the parent tax penalty—that is more prevalent, if less understood, even by its victims.
Today, parents are, in effect, double charged for the federal senior entitlement programs. They of course pay payroll taxes, like everyone else. But unlike adults without children, they also shoulder the financial burden of raising the next generation of taxpayers, who will grow up to fund the Social Security and Medicare benefits of all future seniors.The “parent tax penalty” framing of this is a bit goofy, but the underlying idea here is obviously correct. Old-age benefits like Social Security and Medicare are kept afloat by the creation of future generations of workers, i.e. by having and raising children. This means that everyone who uses those programs, including those that never have children, benefit from the costs parents undertake to raise children. It stands to reason, then, that at least some of the costs of raising children should be socialized by the creation of benefit programs, like parental leave, that we all pay into.
But now eight years later, Rubio is proposing a parental leave program that only parents pay into and in which parental payments are literally assessed as reductions in old-age benefits! The very same old-age benefits that parents make possible for everyone by having and raising children are the ones Rubio wants parents, but not non-parents, to forego in order to finance parental leave. He is literally proposing a “parent tax penalty” collected through the old-age benefit system!
The funding mechanism for Rubio’s parental leave program has gotten the most attention, but there are other aspects of it that are even more odious and obviously at odds with the “pro-life” branding he’s now attached to it. Most glaringly, Rubio’s parental leave program excludes from eligibility anyone who has worked for less than two years. Parents who are still in education or just joined the workforce, which also describes many people who have abortions, will get absolutely no money from this program.
Lastly, buried in the bill text is another curious detail that so far nobody has noticed. In order for Rubio’s proposal to truly be budget-neutral, he needs the Social Security Administration (SSA) to be able to recover all of the parental leave benefits it pays out. For people who live long enough to claim Social Security, this is easy enough: the SSA recovers the leave benefits by docking their Social Security checks.
But what about people who die before they retire? How do you get the money back from them? In Rubio’s bill, when someone dies before reaching old age, all of the parental benefits they received during their life are deemed overpayments and the SSA makes their estate pay them back. So when mom or dad tragically dies a few years after having their third kid, the surviving spouse will have to send a big fat check to the SSA.
To me, this seems cruel.
https://www.peoplespolicyproject.org/2022/07/07/in-rubios-plan-your-estate-must-repay-your-parental-leave-benefits-if-you-die-early/Rubio Parental Leave Proposal Would Weaken Social SecurityIn the wake of the recent Supreme Court decision overturning Roe v. Wade, Senator Marco Rubio has renewed his deeply flawed proposal that would force parents to choose between the paid leave they need to care for new babies and their future Social Security benefits. That proposal, which he and Senator Mitt Romney originally introduced in 2019, would undercut Social Security’s benefits and structure, weakening the retirement security it offers workers. The United States needs paid leave, but it shouldn’t be financed by cutting Social Security benefits.
Under the Rubio proposal, parents opting for parental leave would face permanent cuts to their Social Security retirement benefits that ultimately would far exceed their parental leave benefits. The cuts would amount to their parental leave benefits plus decades of interest, as well as an additional reduction to cover the cost of the parental benefits provided to other parents who die or become disabled before they reach retirement and can’t repay their own leave benefits.
For example, parents with moderate incomes would receive about $5,300 in benefits on average for each three months of parental leave they take — but would then lose about $15,100 in lifetime retirement benefits (measured in 2018 dollars) for those three months of leave, according to the Urban Institute.
All told, this amounts to losing about 3 to 4 percent of lifetime Social Security retirement benefits for each three months of leave. So parents who take three periods of parental leave (after three births or adoptions) would lose roughly one-tenth of their lifetime Social Security retirement benefits.
The proposal would treat parental leave benefits like loans that accrue interest. For a typical worker who has her first child at age 27 and claims Social Security retirement benefits at the full retirement age of 67, interest would accrue for 40 years. Over such a long period, the amount of interest would ultimately exceed the amount of the benefit; in fact, the Urban Institute estimates that leave-takers would eventually pay back nearly four times as much as they received in leave benefits, on average. These cuts would weaken retirement security and impose the greatest hardship on women and workers of color, as they already face less secure retirement than others.
Using Social Security partly as a piggy bank rather than an insurance policy is central to the design of the Rubio proposal. Carrie Lukas, president of the Independent Women’s Forum — which first developed this approach — has written that getting workers to see Social Security as assets “to be used now or at retirement” is a first step toward partially privatizing Social Security.
At a time when many workers face shaky finances in retirement, policymakers shouldn’t weaken Social Security, which is most workers’ only source of guaranteed retirement income. Policymakers can provide paid leave without asking parents to sacrifice some of their retirement security. In fact, that’s what every existing state program does, by financing benefits with modest payroll tax contributions. It’s also what the overwhelming majority of workers prefer: when polled about the best funding mechanism for a national paid family and medical leave policy, just 3 percent of voters preferred drawing from the Social Security trust funds.
Parents should never be forced to choose between the paid leave they need and their hard-earned retirement security. Instead, we need a national, comprehensive paid family leave policy that is responsibly financed.
https://www.cbpp.org/blog/rubio-parental-leave-proposal-would-weaken-social-security