Lawmakers Outline Ideas to Shore Up Social Security
Social Security as we know it could cease to exist in about 10 years. The Social Security and Medicare Boards of Trustees 2022 Annual Report revealed that without policy changes, Social Security’s combined trust funds will be exhausted in 2035. At that time, benefits would need to be drastically cut. The only hope of securing Social Security solvency is for lawmakers to take action — now!
Bipartisan Social Security Commission Act
U.S. Reps. Tom Cole (R-OK) and Jake LaTurner (R-KS) recently reintroduced the Bipartisan Social Security Commission Act to address Social Security’s long-term solvency. According to Financial Regulation News, Rep. Cole has been the lead sponsor of this proposed legislation for the last six Congresses.
Citing the need for common sense solutions to ensure Social Security’s long-term survival, Rep. Cole stated: “The solvency of Social Security is at a critical point, and millions of Americans who have paid into this program throughout their working lives may not receive the money they deserve. It is time for Congress to address this issue in earnest, or these funds will dry up and leave millions of American seniors at risk.”
Fundamental to the bill is the establishment of a 13-member Commission on Long Term Social Security Solvency to provide Congress with program-improving recommendations.
Social Security Expansion Act
The Seniors Trust stands behind the Social Security Expansion Act introduced by U.S. Sen. Bernie Sanders (I-Vt.) and U.S. Rep. Peter DeFazio (D-Ore.). Not only would it ensure the long-term solvency of Social Security, but it would also provide seniors with bigger benefits.
Under this bill, seniors would receive an extra $2,400 in benefits each year. In addition, it would recalculate the way the Social Security cost-of-living-adjustment (COLA) is calculated, using the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-E more accurately reflects the actual spending of seniors, which tends to be on expenses such as healthcare and housing.
To fund the proposed benefits boost and maintain solvency far into the future, the Social Security Expansion Act calls for applying the Social Security payroll tax on all income above $250,000. Currently, earnings above $160,200 aren’t subject to the Social Security tax.
Join Our Efforts
The Seniors Trust believes the Social Security Expansion Act seeks to reform Social Security the right way: by expanding and strengthening benefits proven to reduce senior poverty and improve retirement security as well as extending the solvency of this crucial program.
Please, sign our petition to Congress and join us as we strive to improve the lives of senior citizens.
