House Democrats, looking to renew plan to expand Social Security, say debt ceiling fight ‘hurts seniors the most’
Rep. John Larson, D-Conn., leaves the Capitol after the ultimate votes of the week on Feb. 28, 2019.
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At the Tuesday occasion, House Minority Leader Hakeem Jefferies, D-N.Y., known as it “harmful default gamesmanship” that would put advantages for thousands and thousands of retirees throughout the nation in danger.
Social Security already faces funding dangers
In order to stop a Social Security funding shortfall, congressional Democrats and Republicans should agree on an answer.
The latest projections from the Social Security Board of Trustees present the belief fund used to pay retirees, in addition to their household and survivors, will likely be depleted 10 years from now. At that time, 77% of these advantages will likely be payable.
When mixed with the belief fund used to pay incapacity advantages, the funds are projected to be depleted in 2034, when 80% of benefits would be payable.
The Social Security 2100 Act that was launched in the final Congress had broad help amongst House Democrats.
This tactic of holding the financial system hostage hurts seniors the most.
John Larson
Democratic Representative from Connecticut
The newest model of the invoice will likely be sponsored by Democratic Sens. Richard Blumenthal of Connecticut and Chris Van Hollen of Maryland, Larson stated.
Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., reintroduced their very own Social Security proposal earlier this yr, which equally goals to enhance advantages whereas extending the program’s solvency by taxes on the rich.
To date, Republican lawmakers haven’t proposed laws to tackle Social Security’s funding woes. Sen. Bill Cassidy, R-La., recently said he’s engaged on a bipartisan “huge concept” to tackle the program’s 75-year shortfall.
“That’s why we’re right here, to implore our Republican colleagues to work with us, to signal on to our invoice, or produce what they consider is a greater plan,” Larson stated.
Changes in the Social Security 2100 Act
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The Social Security 2100 Act goals to lengthen the program’s solvency, although estimates aren’t but out there for the way lengthy it might delay the program’s funding. The final model of the invoice was anticipated to lengthen the program to 2038.
In distinction, the Sanders and Warren plan would lengthen the solvency by 2096.
A key distinction between the two plans is how they have an effect on increased taxes. The Sanders and Warren plan requires reapplying Social Security payroll taxes for incomes of greater than $250,000.
In distinction, Social Security 2100 would apply these taxes to earnings of greater than $400,000, in step with President Joe Biden’s promise not to elevate taxes for households with annual incomes under that threshold.
This yr, the most earnings topic to Social Security payroll taxes is $160,200.
Social Security 2100 additionally requires including an extra 12.4% internet funding earnings tax for taxpayers making greater than $400,000.
In addition, the invoice would introduce a number of expansions to advantages.
The Social Security 2100 Act would enhance all advantages by 2% for the program’s greater than 65 million beneficiaries.
It additionally seeks to make advantages extra beneficiant for aged beneficiaries who’ve been receiving advantages for 15 years or extra, in addition to low-income seniors and widows and widowers from two-income households.
It would repeal guidelines that cut back advantages for some public staff and their spouses, often known as the Windfall Elimination Provision and Government Pension Offset.
Congressman Larson provides a standard sense, honest and forward-looking plan to make sure that the 88 year-strong promise of Social Security stays fulfilled.
Max Richtman
president and CEO of the National Committee to Preserve Social Security and Medicare
It would additionally enhance entry to advantages for kids who stay with grandparents or different kin, in addition to restore pupil advantages up to age 26 for kids of beneficiaries.
The invoice additionally requires altering the method annual cost-of-living changes are measured, amongst different adjustments.
Social Security advocates praised the reintroduction of the invoice.
“At a time when the House Majority has taken the nation to the brink of default — which might have catastrophic penalties for seniors on mounted incomes — Congressman Larson provides a standard sense, honest and forward-looking plan to make sure that the 88 year-strong promise of Social Security stays fulfilled,” Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, stated in a press release.