What Congress is Doing to Help Strengthen Social Security
Financial relief may be on its way to the millions of older Americans who rely on Social Security income. A Newsweek article looks into a new bill introduced in the U.S. Senate that promises financial relief for retirees.
Putting Retirees First
The Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simple Taxes (RETIREES FIRST) Act, sponsored by Senators Roger Marshall (R-KS) and Marsha Blackburn (R-TN), proposes significant changes to Social Security taxation.
Currently, millions of Americans pay taxes on a portion of their Social Security benefits. According to the article, “this impacts their financial security, particularly at a time when inflation and health care costs continue to be significant concerns, putting additional strain on retirees’ budgets.”
The bill calls for raising the provisional income threshold so fewer retirees fall into the taxable category, allowing them to keep a larger portion of their Social Security benefits. This would relieve the financial strain on those living on fixed incomes.
A Better Bill
We at The Seniors Trust believe a better option is the Social Security Expansion Act sponsored by Sen. Bernie Sanders (I-VT), Sen. Elizabeth Warren (D-MA), and Rep. Jan Schakowsky (D-IL). Not only does it provide financial relief for retirees, but it also strengthens the Social Security program, ensuring its future.
This landmark piece of legislation would increase benefits by $200 per month across the board; update and increase the minimum benefit to 125 percent of poverty, to ensure that no one retires into poverty after a lifetime of work; and switch to the more accurate consumer price index for the elderly (CPI-E), that more accurately reflects seniors’ spending.
Additionally, this bill would ensure that all benefits will be paid in full and on time for the next 75 years and beyond by requiring those with incomes of $250,000 or more to pay into Social Security on all of their income, earned and unearned, above that $250,000 threshold.
