Social Security Update: New Bill Could Benefit Seniors Immensely by Improving Cost-of-Living Formula

[SheltieLover]

https://news.yahoo.com/social-security-bill-could-benefit-113110553.html

A new bill proposed by Rep. John B. Larson (D-CT) would bring sweeping changes to Social Security benefits, including hiking the annual cost-of-living adjustment to better reflect costs incurred by seniors.

The bill, called “Social Security 2100: A Sacred Trust,” is slated to be introduced this week, according to a report from 401K Specialist. If it passes, it would provide an increase for all beneficiaries that is equivalent to about 2% of the average benefit, Larson said on his website. It would also tweak the annual COLA by adopting a CPI-E (Consumer Price Index-Elderly) formula designed to take into account health care expenses, which seniors spend a greater portion of their income on than other age groups.

“Improved inflation protection will especially help older retirees and widows who are more likely to rely on Social Security benefits as they age,” Larson wrote in a statement.

More at link. Glad someone is paying attention!

[XanaDUer2]

1. Let's hope! Nt

[jimfields33]

10. I'd switch the minimum social security check to 2,000 a month and go from there

Lift the damn cap!

[erronis]

15. I like that. But limit the payout to those that need it.

It can't be income based since most seniors don't have income. It should be means/wealth based.

[Dave says]

23. No. The enduring success of the program ...

… is due in part because it is *not* means tested and therefore cannot be successfully attacked as a form of welfare.

[XanaDUer2]

28. Agreed nt

[ShazzieB]

38. Good point! 👍

[Voltaire2]

39. People with iras and 401ks

Will generally exceed the income limits and pay taxes on their benefits. Retired people who saved for their retirement are already getting ‘means tested’, they don’t deserve additional penalties.

[Diamond_Dog]

2. Yay for the caregiver credits! -nt

[CousinIT]

3. What Democrats had better be paying attention to is the SS SHORTFALL that is coming..

....in just a few years.

WHEN THAT HAPPENS - EVERY social security recipient will experience a benefits CUT of 25% or more. DON'T GET ME WRONG, these COLAS adjustments are good, right, just and needed - BUT they will exacerbate the trust fund running short that much faster. Democrats NEED. TO. DEAL. WITH. THIS. NOW. Because Republicans are FINE with thos 25% cuts or more -- OR abolition of social security all together. Just like the ACA, Democrats created social security -- and Republicans have been trying to DESTROY it ever since. Democrats need to GET ON THIS NOW because damn sure Republicans are planning on those massive cuts - or worse. They'll want to raise the retirement age, and CUT benefits - both of which are unnecessary. Lifting or removing the cap AND increasing the tax rate AS WELL AS ALLOWING MEDICARE TO NEGOTIATE DRUG PRICES would solve the issue. But Republicans WILL NOT GO FOR THAT.

[Sibelius Fan]

6. Simple solution: eliminate the cap on income subject to SS payroll tax.

Last edited Sat Oct 23, 2021, 02:57 PM - Edit history (1)

That amount is currently $137,700 for an individual.

Most Americans pay the full ride in SS taxes based on their income. In contrast, a person earning $1.37-million a year pays SS tax on only the first 10% of their income. How is that fair?

BTW - don't give me the specious argument that millionaires would over pay into SS as they would never get all of their contributions back in benefits. There are tens of millions of people who never draw a cent in SS benefits because they die before they hit 62-65. There are tens of millions who draw little in benefits as they die shortly after drawing benefits. Rich people have better health care over the length of their lives and tend to live longer than the rest of us.

Lift that arbitrary cap and SS will most likely be fully funded in perpetuity.

[Sucha NastyWoman]

11. This is the most fair solution.

And the most fail proof.

[SheltieLover]

25. This Bill covers the wage cap

The bill would also require the wealthy to pay the same Social Security payroll tax rate as everyone else. Right now, Social Security taxes are not collected on annual wages over $142,800. Larson’s legislation would apply the payroll tax to wages above $400,000.

From original post & link.

[Hoyt]

9. We'll keep kicking the can down the road until an automatic cut of 25% is about to happen. Obama

Obama tried to address this and was bashed by Republicans and Dems.

People think all they have to do is increase tax on incomes above the current cap, except that isn't going to happen because that roughly 12 percentage point tax increase is needed for other things.

We better pra that GOPers are not in charge when it gets closer.


"CBO projects a Social Security deficit of $120 billion this year that will steadily grow to $384 billion by 2030. Two years later, the trust fund will be fully depleted. If we do not act soon, the Social Security Administration will not have the resources or authority to pay full benefits, leading to an immediate 25 percent benefit cut. Such an outcome would be a crisis for most of the 80 million Americans who will be receiving Social Security in that year."

"This information is disturbing, but not surprising. Had we heeded earlier calls by Presidents Clinton, Bush and Obama, we could have phased in tax and benefit changes gradually to minimize the disruption to people’s lives. Instead, Social Security became increasingly polarized and both parties became less honest about the implications. Too many Republicans pinned their hopes on an ill-conceived plan to convert Social Security into a nationwide 401(k) style system. Democrats have been content to minimize the scope of the problem, even calling for benefit increases despite not having a plan to pay for those benefits already promised.

"In a world of combatting narratives and alternative facts, it is worth remembering that mathematics does not distort or lie. And the mathematics of Social Security are clear: benefits are at risk. And the longer we wait to face this, the more disruptive those changes will be.

"If we wait until the trust fund runs dry, then we will be faced with a mix of ugly choices. We could immediately cut benefits for 80 million recipients by 25 percent. We could raise payroll tax rates for 180 million workers from 12.4 percent to about 16.4 percent. In either case, further spending cuts or tax increases would be required going forward. Neither of these options or the others that could close the funding gap are economically attractive, let alone politically palatable. . . . . ."

https://thehill.com/opinion/finance/555972-the-time-is-now-for-action-on-social-security

[Sibelius Fan]

16. The 12 percentage point tax is needed for other things? Other things?

Fund SS fully by eliminating the cap. Then find something else to tax the rich on to fund other things.

And while we’re at it, eliminate taxes on SS and unemployment benefits.

[Hoyt]

18. Ain't gonna happen, Sibelius. We can't even get a small tax increase on those making over $400K.

Yes -- we need to fund childcare, a viable health system, jobs programs, education, debt reduction, infrastructure, deficit reduction, etc. That will require a significant tax increase. Adding another 12 percent increase for SS, isn't going to happen.

Until we face reality, we are in jeopardy.

[SheltieLover]

19. This Bill covers this concern

By again attempting to make high wage earners pay their fair share.

This is covered in the article I posted the link for.

[Hoyt]

26. No, Bill doesn't include anything for Social Security. General revenue -- with whatever tax increase

Congress ultimately is able to enact -- is not used to pay Soc Security.

[SheltieLover]

27. Excerpt

The bill would also require the wealthy to pay the same Social Security payroll tax rate as everyone else. Right now, Social Security taxes are not collected on annual wages over $142,800. Larson’s legislation would apply the payroll tax to wages above $400,000.

[Hoyt]

30. My bad, thought we were talking about Reconciliation. Larson's Bill has no chance

of passing, unfortunately. It won’t even pass the House.

[SammyWinstonJack]

20. +1000000!

[Dreampuff]

22. Exactly, Cousin!

I would be in favor of a nice increase and we will actually get a decent one in January. Problem is, we don't have a huge Surplus and we are taking out more than is being paid in and it just isn't sustainable unless they come up with a fix for this. Until then, they need to be careful how generous they become and fix this now before we are a minority and it is not possible.

[bahboo]

4. I enthusiastically endorse this....

[Grasswire2]

5. I thought I was the only one yammering for caregiver credits.

The situation is nuts.

If I pay someone to care for my loved ones, that someone earns SS credits.

If I leave the work force to care for my loved ones, I get NO CREDITS for that work.

Home care is work, too. Yet those who must leave the work force lose, lose, lose in terms of retirement security.

This burden falls mostly on women.

And, in case you are wondering how U.S. will pay for this program, the answer is easy. Tax the rich their fair share, and close the loopholes. Voila.

[marie999]

34. The federal government should do something like the VA does.

If a disabled veteran needs a caregiver even a spouse the veteran receives $750 extra a month which they should give to the caregiver. Also, the caregiver has CHAMPVA for free and only needs a supplement unless they are on Medicare and then CHAMPVA is the supplement. CHAMPVA has free meds by mail.

[multigraincracker]

7. Raise SS penny for penny with the increases in

Pharmaceutical Company retail prices.

[NullTuples]

14. Drug Co Execs: Sounds good to me!

[leftieNanner]

17. Any increase I receive in my SS benefits

Has always been more than offset by the increase in my Medicare Supplemental Insurance. $10.00 per month "raise" vs. $40 per month increase in insurance cost.

It's not sustainable that way either.

[Dreampuff]

24. Leftie I didn't realize that was even possible

Are you talking about the Part B premium or the cost of your Medicare supplement? If it is the latter, I would definitely look around for a better option.

And the years there is no increase, our premium doesn't go up because of the do no harm clause.

[George II]

31. My supplemental insurance was $26 per month in 2013 when first enrolled for SS. This year it's $29.

[leftieNanner]

33. Wow!

My drug coverage is $32 per month and my supplemental is $120. And I don't take any prescription meds at all.

What company do you have?

[George II]

35. We have United Healthcare. We have pretty basic prescriptions - me blood pressure and cholesterol..

...and my wife 3 for blood pressure. Copays for my two are $5.25 combined for 3 months (less than a buck a month each), two of hers are under $6 combined, the third $20, all for 3 months.

I'm sure people with more serious ailments would have higher co-pays.

[leftieNanner]

36. Strange

We had United healthcare through AARP and it was much more expensive than what we have now. We are with Blue Cross Regence plan. I may need to do some shopping. It is the season!

[George II]

37. I think the state in which someone lives has some effect on the premium. We're in Connecticut....

....and there are a half dozen options available to us, so it's highly competitive.

[Native]

8. Not holding my breath.

[Sherman A1]

32. Same here

Sounds great, but I will wait for it to happen.

[PoliticAverse]

40. Yeah this has near 0% chance of passing Congress. n/t

[ibegurpard]

12. Don't accuse them of cruelty

That implies power... which gets them off.

[Shermann]

13. The CPI-E fix is a slam dunk

Basing COLA on the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) never made a lick of sense.

[UCmeNdc]

21. K&R

[George II]

29. That's good news! As it is, next year we're getting a 5.9% increase....

What I like most about Congressman Larson is that he gives the best post-convention parties ever! I've been a delegate to the last three or four of his conventions (last year it was virtual), he provides a huge spread with an open bar at Goodwin College in his home town of East Hartford.