Social Security recipients could be in for a giant benefits boost if Congress enacts the Social Security Expansion Act. As The Motley Fool explains, this landmark piece of legislation could put an extra $200 in recipients’ pockets each month — that’s an extra $2,400 each year.
And, as they say on TV: “That’s not all!” Under this proposal, individuals would not need to wait until they hit full retirement age to collect. Anyone who turns 62 would be eligible for the increase.
Scrap the Cap
So, where would all this extra money come from? That’s a good question, especially considering we keep hearing reports that the Social Security trust fund will be depleted in 10-15 years. At that time, benefits could be cut by about 20 percent.
Under the Social Security Expansion Act, wealthy Americans would contribute more. Currently, payroll taxes (which fund Social Security) are capped at $147,000. Any income over that is not taxed. This puts the burden on low-wage workers. This bill would reinstate the payroll tax on income over $250,000. High wage earners would now contribute a greater amount of their salary to Social Security.
It also calls for collecting taxes on investment and business income, which had been exempt. In many cases, this is the sole means of compensation for corporate executives. So, these multimillionaires were not paying anything into Social Security. That’s not fair!
Can We Make It Happen?
According to the article, the Social Security Expansion Act has a good chance of passing.
It has already gained the support of more than 40 key organizations including the AFL-CIO, Alliance for Retired Americans, American Federation of Teachers, and the National Organization for Women.
The Seniors Trust is also a strong supporter of the Social Security Expansion Act. We fully support this measure and what it will do to help American retirees now and in the future. We encourage you to join our efforts by signing our petition to Congress.
Lawmakers needs to know that their constituents demand change. We want to see this bill become law and boost monthly benefits to about $200, create a strong and long-lasting trust fund and guarantee that retired workers receive adequate Social Security benefits and a fair Cost-of-Living Adjustment (COLA).