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.
“… paid for?” Two ways: 1. more inflation and 2. higher taxes on the hard working who actually pay taxes.
The unfunded liabilities at 170+ trillion includes Social Security and Medicare (?) I believe
Its an election year, so Mittens is probably wrong about that.
Actually that is not correct. Working couples who both worked long enough to accumulate 40 credits each (about 10 years of work) will end up getting their own checks.
When one of the spouses die, the other will either continue with their check or they can claim spousal benefits and claim the check of their deceased spouse if that was higher.
My wife turns 62 this year and I'm debating having her claim early as she only works part-time and is basically retired. Even though I have a large income, it won't affect her so long as she herself does not make more than $19,500 working (which she won't). Then I can work a few more years to get to FRA and file for a much larger amount, which she can switch over to once I kick off.
The 5.9% COLA is from 2022. Current estimates for 2023 is already at 10.5%.
Yes but the boarder jumpers have SNAP cards that you paid for. They can afford it because you can’t. I know it gives me a warm feeling inside to know my hard earned money is going to improve illegal aliens’ life styles - just because they’re criminals here to rob the taxpayers doesn’t mean that we shouldn’t work extra hours so that they can afford flat screen TVs and the best of viands while we take out a mortgage on a package of hamburger.
I think I can see the windmill.
Even if a couple is divorced one can claim the higher check that was. paid to a deceased ex as long as they were married for 10 years.
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There is a surprising amount of complexity with regard to the best ways for collecting your Social Security benefits. I just finished a 200+ page book on it and my head is still spinning!
Bottom line is that there is no one best way. Everybody's situation is different.
I think you’re right.
I don’t understand how the politicians and power brokers can sleep at night and live with themselves.
They will traditional. But I can’t see how they can do the Roth. We’ll see.
“Oh really? I did not leave out a conditional. “
Yes, you did.
And how much of this will go to illegal criminal invaders?
They simply don’t care about the rest of us
Just like Sri Lanka
“Most seniors have pensions and paid off homes……I personally don’t know any who just depend on SS.”
THAT’S the way our generation was taught : get a good education, get a job, live within your means, do NOT owe money to ANYBODY, and SAVE for the future! Buy a house and pay it OFF early!! THIS will take you about 30-years of hard work and sacrifice, better to start later than never .. . I know THIS sounds so terribly Colonial and racist, but we did it out of ignorance and ONLY had two genders back in my youth .. .
SS was NEVER meant to be the SOLE source of income for retired people. I retired when I was 62. I’m 70 now and just STARTED collecting SS .. .
NOT surprisingly, the DEFINITION of, “Social Security”
has evolved to mean, “Social Security : so you can afford to eat dog food.”
Hey, maybe dog food is THAT expensive, I don’t know, I have 4 cats, and it’s a small fortune just for their twice-daily gourmet snacks .. . my SS check just about covers that .. .
That is how they will keep their “promise” to retirees. Social Security will still be there, but a loaf of bread will cost $200 due to inflation.
As for the idea of everyone planning their own retirement, that’s great except that companies like to lay people off in their fifties. At that point, it is difficult to find another job. Hardly anyone is prepared to stop working at 55 and live off what they made and saved up to that point.
Go after the lazy who are on welfare.
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