IN-DEPTH: Tuberville Calls Social Security A Ponzi Scheme

Standing in front of a large sign reading "Social Security is a Scam" on the floor of the U.S. Senate, Alabama Senator Tommy Tuberville didn't just touch but he grabbed what is commonly known in Washington as the "third rail" of American politics - Social Security. (The metaphor comes from the electrified third rail on subway systems: touch it and you get shocked, or worse, get electrocuted.)

During floor speeches this afternoon Tuberville scolded senators past and present for letting fear keep them from enacting legislation that, he believes, could help keep the main retirement trust fund from going insolvent in 2032, and the combined retirement + disability funds in 2034.

Social Security funds much more than just retirement benefits. It is actually a family of programs, only one of which is retirement. The others cover disability, survivors, family benefits, and a separate needs‑based program. All will be impacted by insolvency.

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The Problem As Senator Tuberville and GOP See It

"I've come the floor to talk about a big scam in our country. It's happening in broad daylight before our very eyes. Politicians here in Washington know what's going on but they refuse to speak about it, they're too worried about getting elected in most cases. And they think telling the truth about the scam will hurt their chances of staying in power.," he told the mostly empty chamber.

Tuberville will not be in the senate when the next body is seated in January whether he wins or loses the Alabama governor's race in November. With that in mind he scolded the body for not having the fortitude to resolve the issue.

The one-term senator identified what he called the 'sad truth.,' Americans have paid into Social Security each month without having any idea if they are going to get money back or not." Tuberville claimed since President Franklin D. Roosevelt signed the social security act in 1935; American's money, "Has been going in the front door of the federal government and then out the backdoor."

Tuberville called Social Security a "big, gigantic, blown-up Ponzi scheme" that Americans are forced to participate in without choice. "Whether you are 17 or 67, more than 6% of your paycheck is taken out to pay for Social Security, your so-called retirement." Tuberville called the six percent a huge sacrifice for Americans struggling to live paycheck to paycheck.

'The Coach', as Tuberville likes to be called because of his past time as a college football coach, emphasized that the program is 100% broke. He pointed out that once the reserve money runs out, senior citizens could see a cut in their monthly check up to 22 or 25%. On average, he adds, that is $500.00 a month.

Financial experts cite several factors for the fast-approaching insolvency.

• Lower birth rate,
• Lower net immigration, and
• Reduced income tax revenue from Social Security benefits due to recent tax law changes.

A study last month by the Committee for a Responsible Federal Budget, found Social Security faces cash deficits totaling $3.8 trillion over the next ten years,

Tuberville is not the first Republican Party member to called Social Security a 'Ponzi Scheme'. Senator Ron Johnson (WI) called Social Security a “forced retirement program.” He has also called Social Security a “Ponzi scheme,” placing him in the company of Senators Ted Cruz and Rand Paul, Elon Musk, and President Trump.

The senator also points out that Americans are double taxed on Social Security. While it's not technically a double tax, recipients do pay 12.4% in Social Security payroll taxes spilt 50/50 with their employer, then when benefits are received the IRS may tax those benefits again. Tuberville blamed that on Joe Biden when he was a senator. He also credited President Trump's One Big Beautiful Bill included senior deductions that significantly reduced federal taxes for the majority of retirees.

The Tuberville and GOP Solution

So, what is the senator's plain to save Social Security? He says no one has been willing to touch a solution for what he called a socialist system because they are afraid of the controversy. Tuberville thinks if anyone had been willing to solve the money shortage, they would have allowed Americans to invest their Social Security dollars in the stock market.  "If they had done that, they would have gotten 10 times the money that they had put it," Tuberville claimed. "But you know where it was invested in? Most people don't know this. It is invested in, your money, when it comes here, is put into treasury bonds that have very, very low returns."

Tuberville added that the reason Social Security is invested in bonds is because it is being used to prop up the federal government.

Tuberville pointed out that President Bush tried to save Social Security by privatizing it when he was in office but got extreme pushback from special interest groups.

Bush suggested that "Younger workers divert their portion, young workers, divert their portion to a money market account that would pay for theirs in the future and ours today." But the 'D.C. Swamp' shut it down fast according to the man leading in the governor's race.

The senator added that the government stopped working in "your best interest" a long, long time ago."

He concluded his address by equating people becoming outraged if they don't get their Social Security money with the January 6th U.S. Capital rioters.

"Give them their money and let them put it in a money market account, the stock market is booming!" he emphasized.

The bottom line, he said, "...is to get bureaucrats and politicians and out of this mess, stop the Social Security scam, let people really know what's really going on and give the money back to the people."