(Gray News) – Lawmakers have shared a plan that they say will boost Social Security payments while also strengthening the program for the future.
Rep. Peter DeFazio and Sen. Bernie Sanders have introduced the Social Security Expansion Act.
The plan includes an increased cost-of-living adjustment for seniors, an extension of the program to 2096 and those who qualify to get $200 more per month.
“One of my highest priorities is protecting Social Security, which millions of Americans rely on. With the cost of living at an all-time high, Social Security has never been more important,” DeFazio said.
Lawmakers said the bill would help low-income workers by updating and increasing the minimum benefit level equal to 125% percent of the poverty line.
The bill would require legislation to lift the income tax cap and subject all income above $250,000 to the Social Security payroll tax.
“At a time when half of older Americans have no retirement savings and millions of senior citizens are living in poverty, our job is not to cut Social Security,” Sanders said. “Our job must be to expand Social Security.”
Sanders also said the bill would call on the wealthiest people in the U.S. to pay the same amount of Social Security taxes as someone making $147,000 a year.
“It’s time to scrap the cap, expand benefits and fully fund Social Security,” Sanders said.
Representatives shared that more than 40 national organizations have endorsed this legislation that would help senior citizens and persons with disabilities.
“An extra $200 a month would go a long way in helping retirees make ends meet. Extending the solvency of the Social Security program for 75 years means this benefit will pay itself forward for years to come,” Richard Delaney, with the Senior Citizens League, said.
Lawmakers also shared the following details on what the Social Security Expansion Act would do:
- Extend the solvency of the Social Security trust fund 75 years, through 2096, by requiring the wealthiest Americans to pay their fair share into the fund, just like everyone else. This legislation would lift the income tax cap and subject all income above $250,000 to the Social Security payroll tax. Under this bill, more than 93 percent of households would not see their taxes go up by one penny.
- Expand Social Security benefits across the board for current and new beneficiaries. Under this bill, Social Security benefits for someone turning 62 next year would be $200 per month higher.
- Increase Cost-of-Living Adjustments (COLAs). This bill would more accurately measure the spending patterns of seniors by adopting the Consumer Price Index for the Elderly (CPI-E), which would change the formula to reflect what seniors spend a disproportionate amount of their income on such as health care and prescription drugs.
- Require millionaires and billionaires to pay their fair share into Social Security. Currently, workers have 12.4 percent taken out of each paycheck and contributed to the Trust Fund, half paid by the employer and half by the worker. This bill would require the wealthy to pay the same 12.4 percent on their investments and business income by increasing the net investment income tax by 12.4 percent and applying it to certain business income not already covered by payroll taxes.
- Improve the Special Minimum Benefit for Social Security recipients. This bill will help low-income workers stay out of poverty by updating and increasing the Special Minimum Benefit and indexing the benefit level so that it is equal to 125 percent of the poverty line or about $17,000 for a single worker who had worked their full career.
- Restore student benefits up to age 22 for children of disabled or deceased workers, if the child is a full-time student in a college or vocational school. This legislation restores student benefits to help educate children of deceased or disabled parents (these benefits were eliminated in 1983).
- Combine the Disability Insurance Trust Fund with the Old Age and Survivors Trust fund to help senior citizens and persons with disabilities.
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