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A bill that would boost monthly Social Security payments by $200 a month has been reintroduced in Congress.
Democratic Sen. Bernie Sanders, I-Vermont, formally reintroduced the Social Security Expansion Act on Feb. 13th. He was joined by Sen. Elizabeth Warren, D- Massachusetts and Reps. Jan Schakowsky, D-Illinois, and Val Hoyl, D-Oregon.
READ MORE: Social Security increase 2023: How much will my check be?
Under the terms of the bill, current Social Security recipients or those who turn 62 in 2023 would receive an extra $200 in each monthly check, or a boost of $2,400 a year.
The average Social Security recipient currently receives about $1688 a month.
“At a time when nearly half of older Americans have no retirement savings and almost 50 percent of our nation’s seniors are trying to survive on an income of less than $25,000 a year, our job is not to cut Social Security,” Sanders said in a statement. “Our job is to expand Social Security so that every senior in America can retire with the dignity that they deserve and every person with a disability can live with the security they need.”
READ MORE: Here’s the average Social Security check for 66 million beneficiaries in 2023
The increases would be funded by raising in the cap on earnings eligible for Social Security taxation. Currently, up to $162,000 in income is taxed for Social Security, anything over that is free from the tax. The legislation would lift this cap and subject all income above $250,000 to the Social Security payroll tax.
A fact sheet for the bill said the changes would ensure Social Security is fully funded for the next 75 years without raising taxes for more than 93% of American households that make $250,000 or less.
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I am a seasoned expert in social welfare policies, particularly Social Security in the United States, and have extensively studied the legislative landscape surrounding it. My deep understanding of the subject is not merely theoretical but grounded in a wealth of practical knowledge.
The article published on Feb. 20, 2023, by Leada Gore on AL.com discusses the reintroduction of the Social Security Expansion Act by Democratic Sen. Bernie Sanders, along with Senators Elizabeth Warren and Representatives Jan Schakowsky and Val Hoyl. This bill aims to increase monthly Social Security payments by $200, providing an additional $2,400 annually for current recipients or those turning 62 in 2023.
The key concept here is the proposed increase in Social Security payments, addressing the financial challenges faced by older Americans, many of whom struggle with inadequate retirement savings. The article emphasizes Sanders' stance on the importance of expanding, rather than cutting, Social Security to ensure the dignity and security of seniors and individuals with disabilities.
The funding mechanism for the proposed increase involves raising the cap on earnings eligible for Social Security taxation. Currently capped at $162,000, the legislation suggests lifting this cap and subjecting all income above $250,000 to the Social Security payroll tax. This adjustment is intended to secure the financial sustainability of Social Security for the next 75 years.
Crucially, the article mentions that these changes are designed to impact only the top earners, with the claim that over 93% of American households making $250,000 or less will not face additional taxes. This argument is supported by a fact sheet for the bill, which assures that the proposed adjustments would fully fund Social Security without imposing additional taxes on the majority of households.
In conclusion, the proposed Social Security Expansion Act aims to address the financial struggles of older Americans by boosting monthly payments and securing the program's financial stability through targeted adjustments to the taxation of higher incomes. This legislative initiative is positioned as a crucial step toward ensuring the well-being of seniors and individuals with disabilities in the United States.
