Two Changes Congress Can Make That Could Help Save Social Security
Millions of Americans receive Social Security benefits. The program is facing a severe funding shortfall and will have to cut benefits by more than 20 percent in about 7 years if lawmakers don’t do something soon.
According to 24/7 Wall St., Congress can fix the revenue problem by raising the payroll tax rate or lifting the wage cap. Tax hikes are unpopular, so that’s unlikely to happen. A more palatable solution might be to “lift the wage cap that limits the amount of earnings that are subject to Social Security taxes each year.” This means higher wage earners would pay a fairer share.
Another problem is that the cost-of-living adjustment (COLA) isn’t keeping up with inflation, and seniors are struggling financially. The article suggests basing the COLA formula on the CPI-E, which reflects how seniors spend their money, rather than the current CPI-W, which is based on the habits of wage earners.
Both of those problems are addressed by the Social Security Expansion Act. All of us here at The Seniors Trust are working diligently to get this landmark bill passed. It will give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, increased minimum benefits, and ensure the long-term solvency of the Social Security program.
