Let’s Take Deep Dive Into What the 2022 Social Security Expansion Act Will Deliver
Senator Bernie Sanders (Ind-Vermont) and Congressman Peter DeFazio (D-Oregon) introduced joint legislation to strengthen and expand Social Security for current and future generations. Once enacted, the Social Security Expansion Act will expand Social Security benefits by $2,400 a year and fully fund it for the next 75 years — all without raising taxes on over 93 percent of American households.
According to press releases distributed by Sen. Sanders and Rep. DeFazio, the Social Security Expansion Act would:
- Extend the solvency of the Social Security trust fund through 2096, by requiring the wealthiest Americans to pay their fair share. This legislation would lift the income tax cap, which currently stands at $147,000, and subject all income above $250,000 to additional 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. That’s welcome news during this time of record high inflation.
- Increase Cost-of-Living Adjustments (COLAs). This bill would more accurately measure 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 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 benefits to help educate children of deceased or disabled parents which 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.
The Seniors Trust is dedicated to ensuring passage of the Social Security Expansion Act. We believe the is essential for the financial future of American retirees. This comprehensive piece of legislation 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.