by Natura Naturans
Social Security expansion bill poised to gain traction in Congress
The measure, which would expand benefits for current and future recipients, would extend the program’s solvency for 75 years, according to Social Security’s Office of the Chief Actuary.
To help fund the proposed changes, earnings above $400,000 would be subject to Social Security taxes. In 2019, earnings above $132,900 are not subject to the levy.
The payroll tax also would gradually rise to 14.8 percent from the current 12.4 percent by 2043, with workers and their employers splitting that tax as they already do.
Social Security recipients also would benefit, getting an increase of about 2 percent of average benefits. And, the yearly cost-of-living adjustment — called COLA — would use a different formula to determine annual bumps intended to more accurately reflects rising costs for older Americans.
Additionally, the bill also would create a new minimum benefit set at 125 percent of the poverty line and take other steps to ease financial pressure on retirees, including doubling the amount of Social Security income that isn’t subject to taxation.
The end result would be extended solvency for the program for 75 years, according to Social Security’s Office of the Chief Actuary.
What is essential about this bill is it ups the lowest social security amount. The saddest thing in our society is someone who worked their entire life at near minimum wage and now gets $1,000 social security or less a month. And the most unfair is the very high wage earner, with lots of other sources of income gets twice that or more. This is blatantly unfair. I hope the Republicans do not oppose this bill. Social security by it’s very name was not suppose to add a little icing on the cake of the rich.