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Fast Money & Foreign Objects
Democrats Push Plan to Increase Social Security Benefits and Solvency
Senator Richard Blumenthal before a town hall-style meeting in his home state, Connecticut. He is among the Democrats leading a push to expand Social Security.CreditMonica Jorge for The New York Times
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Senator Richard Blumenthal before a town hall-style meeting in his home state, Connecticut. He is among the Democrats leading a push to expand Social Security.CreditCreditMonica Jorge for The New York Times
By Robert Pear
The Social Security 2100 Act, which was introduced this past week in the House and the Senate, represents a sea change after decades dominated by concern that aging baby boomers would bankrupt the government as they begin drawing benefits from Social Security and other entitlement programs. It would be the first major expansion of Social Security since 1972 and the most significant change in the program since 1983, when Congress stepped in to avert a financial crisis by raising taxes and the eligibility age for Social Security.
The bill would provide an across-the-board benefit increase equivalent to about 2 percent of the average Social Security benefit. It would raise the annual cost-of-living adjustment to reflect the fact that older Americans tend to use more of some services like health care. And it would increase the minimum benefit to ensure that workers with many years of low earnings do not retire into poverty.
The bill would cut federal income taxes on Social Security benefits for about 12 million middle-income people while raising taxes elsewhere. The payroll tax rate would rise to 14.8 percent over the next 24 years, from 12.4 percent, and the payroll tax would be imposed on earnings over $400,000 a year.
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“Our bill, supported by more than 200 members of the House, would enhance and expand the nation’s most successful insurance program, which touches the lives of every American,” said Representative John B. Larson, Democrat of Connecticut and the principal author of the legislation.
Mr. Larson, the chairman of the Ways and Means Subcommittee on Social Security, said he would hold hearings and forums around the country on the legislation.
Among the strongest supporters is Representative Richard E. Neal of Massachusetts, the chairman of the full committee, who called a hearing for this coming week on ways to improve retirement security for American workers.
And Andrew G. Biggs, a Republican who was the principal deputy commissioner of Social Security under President George W. Bush, praised some features of Mr. Larson’s bill.
“It doesn’t just fix Social Security for 75 years,” Mr. Biggs said. “It would keep the system permanently solvent. That’s a real plus.”
On the other hand, Mr. Biggs said: “The bill would give a lot of money to middle- and upper-income retirees who are already doing well. And it would significantly increase payroll taxes on workers.”
Democrats Push Plan to Increase Social Security Benefits and Solvency
Dems
Senator Richard Blumenthal before a town hall-style meeting in his home state, Connecticut. He is among the Democrats leading a push to expand Social Security.CreditMonica Jorge for The New York Times
Image
Senator Richard Blumenthal before a town hall-style meeting in his home state, Connecticut. He is among the Democrats leading a push to expand Social Security.CreditCreditMonica Jorge for The New York Times
By Robert Pear
- Feb. 3, 2019
The Social Security 2100 Act, which was introduced this past week in the House and the Senate, represents a sea change after decades dominated by concern that aging baby boomers would bankrupt the government as they begin drawing benefits from Social Security and other entitlement programs. It would be the first major expansion of Social Security since 1972 and the most significant change in the program since 1983, when Congress stepped in to avert a financial crisis by raising taxes and the eligibility age for Social Security.
The bill would provide an across-the-board benefit increase equivalent to about 2 percent of the average Social Security benefit. It would raise the annual cost-of-living adjustment to reflect the fact that older Americans tend to use more of some services like health care. And it would increase the minimum benefit to ensure that workers with many years of low earnings do not retire into poverty.
The bill would cut federal income taxes on Social Security benefits for about 12 million middle-income people while raising taxes elsewhere. The payroll tax rate would rise to 14.8 percent over the next 24 years, from 12.4 percent, and the payroll tax would be imposed on earnings over $400,000 a year.
Subscribe to The Times
“Our bill, supported by more than 200 members of the House, would enhance and expand the nation’s most successful insurance program, which touches the lives of every American,” said Representative John B. Larson, Democrat of Connecticut and the principal author of the legislation.
Mr. Larson, the chairman of the Ways and Means Subcommittee on Social Security, said he would hold hearings and forums around the country on the legislation.
Among the strongest supporters is Representative Richard E. Neal of Massachusetts, the chairman of the full committee, who called a hearing for this coming week on ways to improve retirement security for American workers.
And Andrew G. Biggs, a Republican who was the principal deputy commissioner of Social Security under President George W. Bush, praised some features of Mr. Larson’s bill.
“It doesn’t just fix Social Security for 75 years,” Mr. Biggs said. “It would keep the system permanently solvent. That’s a real plus.”
On the other hand, Mr. Biggs said: “The bill would give a lot of money to middle- and upper-income retirees who are already doing well. And it would significantly increase payroll taxes on workers.”
Democrats Push Plan to Increase Social Security Benefits and Solvency
Dems
