social security administration recently announced That because of this year’s high level of inflation, it would increase Social Security payments by 5.9% in 2022, the highest increase in nearly 40 years. and a new bill introduced in Congress That could increase those payments even more.
while on campaign markPresident Joe Biden promised to look at the Social Security program, which is currently set to run out of money by 2034, according to Representative John Larson, D-Conn. introduced new bill. Shortage of funds will result in a 20% drop in profit. in some points Biden’s proposal There was a suggestion to pay retirees who are at least 125% of the national poverty level.
Biden also campaigned for raising the Social Security income tax limit to a maximum of $400,000, which would generate an additional $700 billion in revenue over ten years. Forbes. If passed, Larson’s bill could do the same.
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Introduced to the Social Security 2100 Ways and Means Committee
House Ways and Means Social Security Subcommittee Chairman John Larson, D-Conn., Social Security 2100 Introduced: A Sacred Trust Committee Tuesday. The bill aims to expand Social Security benefits and prevent the program from running out of funds. it will also About 2% increase in payments for the average beneficiary.
According to Larson, the law currently has about 200 sponsors and has been endorsed by more than 100 advocacy groups.
“Social Security 2100: A Sacred Trust will expand benefits and strengthen Social Security,” Larson said in a statement. “The pandemic has only underscored what we already knew and has exacerbated systemic inequalities – current benefits are not enough. Long-standing discrimination in the labor force has left five million seniors living in poverty mostly of color and women. affects people.
“These are our sisters, brothers, aunts, uncles and neighbours,” he continued. “Too long, Congress has given up on its duty to increase benefits. 10,000 Baby Boomers a day are qualifying, and Millennials need Social Security more than any generation, time for Congress to act.” is now.”
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What changes will the new Social Security bill bring?
Larson’s bill moves the date that benefits expire to 2038 to give Congress more time to find a long-term solution to the impending retirement crisis. Meanwhile, it will also increase the minimum benefits and raise the income limit for paying taxes to $400,000, up from the current limit of $142,800.
Here are some other changes that the new bill will bring into law if it is passed:
- Increases the average benefit for all Social Security recipients by about 2%
- Improves the annual cost-of-living adjustment (COLA) formula to more adequately deal with inflation growth as measured by the Consumer Price Index (CPI).
- Sets the minimum payment at 25% above the national poverty line
- Improves benefits for widows and widowers in two-income families
- Repeals Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)
- The five-month waiting period for disability insurance benefits ends
- Provides caregiver credit for time spent out of it Number of Employees
- Extends benefits for eligible students until age 22
- Extends access to benefits for children living with grandparents or other relatives
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