Good news tends to get more attention than bad news. Social Security is a program that millions of Americans depend on to make ends meet.
There has been a lot of bad news about Social Security recently. The Social Security Trustees have a report in 2022. They knew that the program's trust funds would run out of money in the near future. It wasn't comforting to know that senior citizens on Social Security could be in for a pay cut down the road.
There may be some good news as well. A pay raise for Social Security recipients is being considered.
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The Social Security Expansion Act was introduced in both houses of the U.S. Congress. The legislation aims to keep Social Security solvent through 2094. It goes beyond that.
Social Security beneficiaries would get an increase in their benefits by $200 per month. The bill does not require individuals to wait until their full retirement age. The increase would apply to anyone who is 62 years old.
The two Democrats want to increase Social Security's cost-of- living adjustments. The formula used to calculate the cost of living for seniors is being proposed to be changed.
As of April 2022, the average Social Security check was $1,666 for retirees. The increase to this amount would be 12%.
Where would the extra money come from? The wealthy would pay the bill.
Social Security taxes are only paid on the first $150,000 of earnings They would like to change this. Any income of more than $250,000 would be taxed. According to a fact sheet, over 98% of households wouldn't see their taxes go up.
The bill leaves a donut hole. Social Security taxes wouldn't apply to any income over $150,000.
Social Security taxes only apply to income earned from work. Investment and business income would be subject to the tax.
A number of organizations have come out in support of the bill. The Alliance for Retired Americans, American Federation of Teachers, and the National Organization for Women are also included.
Right now, it seems like the SSEA could get enough votes to pass in the US House of Representatives. The Senate presents a more challenging challenge.
After the November elections, the chances of Social Security reform becoming a reality could become more difficult. Even if benefit increases aren't in the mix, political leaders will still be under pressure to bolster the federal program.
Martha Shedden, president of the National Association of Registered Social Security Analysts, said in an interview that she was confident changes would be made. Shedden said she didn't know if the bill would pass, but there was more and more movement on it.
The good news is that there is a promise of a raise for Social Security recipients. The good news is that the large cuts in the future may not happen.
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