It Looks Like the Social Security Expansion Act is Gaining Support!
The Social Security trust fund is dwindling. The latest predictions say it could run dry as soon as 2032. When that happens, benefits will be slashed by 23-28 percent. That will put millions of seniors into dire financial straits.
Lawmakers have floated numerous ideas on how to fix this solvency crisis. The one we here at The Seniors Trust favor is the Social Security Expansion Act, sponsored by Senators Bernie Sanders and Elizabeth Warren. This bill increases Social Security benefits, expands Social Security payroll taxes, and makes other changes to the Social Security program.
Financial commentator Jim Cramer, host of Mad Money, recently showed his support for the bill on X (formerly Twitter).
According to an article by 24/7 Wall St., Cramer posted a video from Senator Elizabeth Warren discussing the proposed fix for Social Security. In it, she said:
“We’ve got to make sure that the wealthy Americans pay their fair share and not force seniors to work until they drop dead. Right now, a billionaire — Jeff Bezos, Bill Gates, Elon Musk — pays as much in Social Security taxes as someone who makes $175,000 a year. I’ve got a bill to fix that, and it would raise enough money to increase benefits by $200 a month for every senior and help stabilize Social Security to make sure it is around for the long haul.”
Cramer posted on X, “Nor should I,” referring to the fact that he also should not pay the same Social Security tax as someone earning $175,000. He then added, “This is a very good idea even as it contravenes the way the law envisioned.”
Scrap the Cap
Social Security is funded by payroll taxes. Currently, taxes are only collected on income up to $184,500 — anything above that is not taxed.
The sponsors of the Social Security Expansion Act believe a more equitable way to beef up the Social Security trust fund would be to lift the wage cap, rather than raise taxes. This landmark piece of legislation calls for lifting the cap on Social Security taxes to ensure that the wealthiest Americans pay a fairer amount in relation to their income. The bill’s sponsors say doing so would extend the solvency of Social Security by 75 years. A study by the Center for Economic and Policy Research supports the theory that by lifting the wage cap, we could strengthen the long-term solvency of Social Security.
In addition to strengthening the Social Security program, the Social Security Expansion Act also calls for increased monthly benefits for seniors and enacting an annual cost-of-living adjustment that is fairer to seniors and their unique spending habits.
Change Is Needed
The Seniors Trust is working to pass the Social Security Expansion Act. Please, sign our petition to Congress and join us as we strive to improve the lives of senior citizens.
