Posted on 08/07/2022 4:53:44 PM PDT by george76
Inflation has been taking its toll on retirees, especially those who rely solely on Social Security. But have no fear, Senator Bernie Sanders (I-Vt.) and seven Democratic cosponsors recently introduced S. 4365, the Social Security Expansion Act, a bill to enhance Social Security benefits and ensure the long-term solvency of the Social Security program.
If this bill passes, retirees 62 and over would start to receive an additional $200 a month in benefits beginning in January 2023. Most retirees rely heavily on Social Security benefits, and for some it’s their only source of income.
Currently, Americans will stop receiving their full Social Security benefits in about 13 years if Congress doesn’t act to address the pending shortfall, according to an annual report released in June by the Social Security and Medicare trustees. In other words, monthly benefits will dramatically decrease to all by 2034. At that time, the fund’s reserves will be depleted, and payroll taxes will only cover 77% of benefits owed. About 56 million people received these benefits in 2021.
With this new legislation all may not be lost, as the new bill aims to ease seniors’ financial strain by boosting each recipient’s monthly check. The average monthly Social Security check is about $1,658, meaning a $200 increase would represent a 12% boost. This year’s Social Security Cost-of-Living Adjustment (COLA) of 5.9 percent is based on inflation figures from 2021. But since then, inflation has pushed well above nine percent, meaning Social Security recipients today are actually losing money.
“Many, many seniors rely on Social Security for the majority, if not all, of their income,” said Martha Shedden, president of the National Association of Registered Social Security Analysts. “$200 a month can make a significant difference for many people.”
How will Congress ensure that Social Security will be able to increase benefits and stay solvent for years to come? If you guessed increasing payroll taxes to cover the costs, then you guessed right. According to the bill’s sponsors, the proposed changes will be made possible by raising taxes on people who earn more money per year.
Today Social Security taxes are set at 6.2 percent for employees and employers. This figure is for each, not for both combined. Self-employed workers pay a higher tax rate of 12.4 percent. As the maximum taxable salary is $147,000, the maximum tax payable is therefore $9,114 each for employee and employer, with the self-employed paying up to $18,228 per year.
The bill proposes to increase the maximum taxable salary for Social Security, adding funding by applying the Social Security payroll tax to all income below $250,000. Currently, earnings above $147,000 aren’t subject to the Social Security tax. An additional proposal would be to base the annual COLA on the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Not all in Congress are on the same page with the proposed Social Security Expansion Act. Republican senators were eager to state their opposition to the bill, with Mitt Romney (R-Utah) proudly proclaiming, “This bill has no chance whatsoever of receiving a single Republican vote in either House.”
Instead, the Republicans are proposing the so-called TRUST Act (S. 1295), a bill that establishes congressional rescue committees to develop recommendations and legislation to improve critical social-contract programs such as Social Security and Medicare. Senator Lindsey Graham (R-S.C.) suggested a Senate vote pitting the Social Security Expansion Act against the TRUST Act.
The Expansion Act bill is new and has several hurdles to cross in Congress, but observers expect some kind of change to Social Security to ensure it serves the needs of recipients well into the future. No one knows what Congress will end up with other than it will likely cost Americans more.
We all know that taxation is theft, and the promise of all welfare programs such as Social Security will never be the utopia as expounded by our inept politicians. In a free society the individual should be responsible for his journey in life, knowing full well the consequences of his actions. That responsibility includes planning for retirement. Ultimately, Social Security should be sunset and retirement decisions left to the individual.
An awakening for all Americans who continue to carry the burden of our government’s largesse would be to abolish payroll withholding taxes and allow employees to keep their hard-earned wages. This would force government to end nanny-state socialism and wasteful spending, and bring about a long-needed budgetary revolution.
Okay.
As I read it-—increase the threshold where Soc Sec stops being deducted from paychecks.
Now has $147,000 limit-—would climb to $250,000 to be taxes for Soc Sec. IF % stays the same-—6.2% of $250,000 ==$15,500 for worker & matching amount for employer. Self employed would have to pay entire amount—a max of $31,000.
BIDEN INFLATION has crippled many Soc Sec recipients.
Well... at least it’s better than sending it to Ukraine / Biden family.
Currently FICA tax is paid on the first $147,000 of income at 6.2% (with the employer picking up another 6.2%). Up to now, many employees saw their take-home pay increased significantly when they max out, usually towards the end of the year.
The proposal is to take that away from them and make the FICA cap $250,000 - or likely even higher. This will almost double the FICA tax that higher income people (and the companies that employ them) will pay.
I must say, I saw the handwriting on the wall with this years ago. I knew that the day would come when the government would start grabbing a much bigger chunk from the higher earners in order to keep paying granny's social security checks.
Funny how they never talk about cutting back on welfare for people who don't work in order to take care of people who worked their entire lives.
The $200 would exceed my getting 12 % on MY Soc Sec.
I’m useless and hubby is old and crippled with CHF.
$200 would mean we could afford some cheap hamburger at least.
It was $50 last night for 5 pounds of hamburger and 3 pounds of chicken that will have to last until next payday.
That is an obscenity.
The border jumpers I see in the grocery stores are buying cartfuls of king crab legs, junk food and steaks.
The $200 would exceed my getting 12 % on MY Soc Sec.
I seriously doubt they will give 12%-—it means they have to ADMIT how bad the inflation is. Their usual formula does NOT include gas & groceries, either.
If they’d let people earn more than $18,960 a year that would help a lot.
It would be more tax and SSI withholding collected too.
From reliable workers.
Yes. Only reason US $ is strong is because other countries are in worse trouble. But that can not stop inflation. The government stole 9% of all assets via inflation during last 12 months. The government has the tiger by the tail. If they stop printing money, Military budgets will be cut and benefits such as Medicare, social security, and the thousand different welfare programs run out of money. If they keep printing money all the entitlements and welfare can continue with obnoxious inflation. We are screwed! Debt is like 35-40% higher than GDP now. Which simply means we can not pay any part of principle and reduce national debt.
You can BET the republicans will squash this SS increase BANK ON IT!!!
SOME-—NOT ALL.
MY neighbor gets just under $800 monthly.
My goodness! I receive SS and I think this is an awful idea. The way to increase the SS fund is to get more people back into the work force. The Labor Participation rate is something like 62.2 percent.
We need to quit paying able-bodied young men and women to sit at home and require them to work and pay into the SS system that they will depend upon at retirement age. I worked and paid SS taxes from the time I was about 16. Now we have people perfectly able to work but who have never worked a day in their life but will be receiving benefits.
I think we should send another 100 billion to Ukraine and trillions more for every country on earth, and don’t forget those Compassionate wars lasting 10 years costing multiple trillions.
AND—to think that an actual college gave HER a degree in Economics.
Taxing our dividends and capital gains. It's tough being old.
The key is to stay active. Keep a project going.
This week, for example, I'm considering changing which pocket I put my ear buds case in.
I have to admit, though, the indica just makes me want to relax.
Wow this is propaganda 100%. There is only a theoretical shortfall. For a few years the boomers will overwhelm the system. But shortly afterwards the system will be more flush than ever. As the boomers die off and the oldest boomer is now 77, the very large millennial generation will be able to pay for the boomers and generation X from then on. The next problem will come about 50 years later and will depend on the size of the next generation which is being born right now.
Nobody will lose their Social Security no matter what. The easiest way to solve the problem would be to lend the Social Security program some money as a stop gap. The better way to solve the problem is to move back the age when people could start Social Security by 2 years. Especially the early retirees could be moved back to 64. The later retirees could be moved back to 69.
Another way to do it is a claw back.. That allows people to get Social Security but to claw it back if their income is too high. This could be offset with a higher SS benefit if people wait until 75 to get their higher benefit. That way it works as an insurance policy for those who are wealthier.
If all us old folks die off in the next year or two as the anti-vaxx FReepers predict, there’s no problem at all.
How will it be paid for? How’d those stimulus payments get paid for? Quit carping. I need that cash. It looks the price paid by democrats for votes is definitely feeling the inflationary pressure.
By the sweat of this broken and reeling nation and the scum who have robbed and looted it.
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