Let’s Look at Some of the Ideas Lawmakers Have to Save Social Security
The latest projections are that the Social Security trust fund will run out of money in less than six years. When that happens, benefits are expected to be cut by 22 percent. Fortunately, there are a handful of lawmakers working to save Social Security by shoring up the program before the trust fund runs dry.
An article by Fortune magazine outlined some of the plans:
Currently, annual pay up to $184,500 is subject to Social Security taxes — anything beyond that is not taxed. Sens. Bernie Moreno (R-Ohio) and Elizabeth Warren (D-Mass.) have proposed removing the tax cap, citing a report from the Peter G. Peterson Foundation that estimated such a change would generate about $3 trillion for the program over 10 years.
Sen. Sheldon Whitehouse (D-R.I.) and Rep. Brendan Boyle (D-Pa.) have a similar plan, but rather than eliminating the cap, they want to extend the payroll tax income threshold to $400,000 and also subject investment earnings to the levy.
Sens. Bill Cassidy (R-La.) and Tim Kaine (D-Va.) think the federal government should borrow $1.5 trillion for an investment fund that could generate gains and offer better returns than Treasury bonds.
Another option, proposed by the nonpartisan Committee for a Responsible Federal Budget, has been dubbed the “Six-Figure Limit” and targets recipients receiving the biggest benefits. The Fortune article explains this plan would “set a maximum of $100,000 for couples who are now receiving the top benefits.”
While it is certainly promising that some lawmakers are already working towards finding a fix for Social Security’s woes, those of us at The Seniors Trust think the solution already exists. We are committed to improving the financial well-being of older Americans by passing the Social Security Expansion Act. Not only will this landmark piece of legislation ensure the long-term solvency of the Social Security program, but it will also give retirees an immediate increase of about $200 a month in benefits and provide a fairer annual cost-of-living adjustment (COLA).
