Where Congress Agrees and Disagrees on Social Security
As the country gears up for the 2024 Presidential Election, Social Security is becoming a major talking point. It’s an issue that should weigh heavily on all Americans, retirees as well as those still working, because if our lawmakers do not act soon, Social Security as we know it will be gone.
As The Motley Fool reports, while Congress does not agree on much these days, lawmakers are in consensus that the Social Security program is struggling financially. The Social Security trust fund will reach a deficit in about ten years. At that time, it will only be able to pay about 77 percent of promised benefits. That’s scary for the millions of retirees now relying on Social Security benefits. The article warns cutting benefits will likely lead to a range of health and poverty issues among retirees.
Saving Social Security
While politicians on both sides agree that there is a looming problem, they disagree on what needs to be done to save Social Security. Generally speaking, Democrats tend to favor higher taxes to solve a lot of the issues, while Republicans favor spending cuts.
Social Security is funded by payroll taxes, but only up to a certain portion of the worker’s annual wages. Right now, earnings are capped at $160,200. Income over that amount is not taxed. Democrats want to increase this amount to $250,000, $400,000, or more.
On the other hand, some Republicans think the better solution is to raise the age that retirees can claim their fully entitled Social Security benefits from 67 to 69. Raising the full retirement age (FRA) would essentially cut benefits.
A Better Solution
The Seniors Trust believes the best way to save Social Security is the Social Security Expansion Act. This landmark bill buttresses the long-term solvency of Social Security by expanding benefits for seniors — not cutting them.
When passed, this legislation will require the wealthiest Americans to pay their fair share. It would lift the income tax cap 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.
The Social Security Expansion Act would also expand benefits by $200 per month across-the-board. Retirees would not need to hold off until full retirement age to achieve bigger benefits.
Regardless of your political affiliation, if this is something you can support, please sign our petition to Congress and join us as we work to improve the lives of senior citizens.
