CNBC reports that California lawmakers just approved a resolution asking Congress to expand Social Security. The California legislators support Congressman John Larson’s Social Security 2100: A Sacred Trust bill. If passed, the Social Security 2100 Act would require people with annual incomes over $400,000 to contribute more to Social Security.
Congressman Larson’s bill, H.R. 5723, would strengthen Social Security, ensuring that it remains solvent until 2038, and that it provides better benefits, about a two percent increase in benefits on average. The minimum benefit would increase to 25 percent above the federal poverty level. The bill was last introduced in October 2021, with widespread Democratic Congressional support, including 202 co-sponsors.
All but two California Democratic members of the House of Representatives are co-sponsors of Social Security 2100, Nancy Pelosi and Scott Peters.
Until 2035, Social Security has enough money in its Trust Fund to pay full benefits. After that, it would only be able to pay 80 percent of benefits, unless Congress shores it up. Because Social Security is a national treasure, beloved by Democrats and Republicans alike, Congress has always ensured its solvency.
But, Social Security payroll contributions are capped at $147,000 in annual income this year. They rise every year. Workers and their bosses each pay 6.7 percent of income towards Social Security up to the limit.
The Social Security 2100 Act would require people with incomes over $400,000 to pay into Social Security on wages up to $147,000 and. again, on wages over $400,000. It’s an equitable way to strengthen Social Security. Today, billionaires and millionaires pay no more into Social Security than people earning $150,000 a year.
Senators Bernie Sanders and Elizabeth Warren have their own bill in the Senate that would strengthen Social Security. It would extend the solvency of the Social Security Trust Fund 75 years. It would also increase benefits about $200 a month. This year, it would have required people with incomes of $250,000 and more to contribute into Social Security like everyone else, up to $147,000 in income and, again, on income of $250,000 and above.
Here’s more from Just Care:
- Expand Social Security, don’t means test it
- Social Security benefits should rise around 9 percent in 2023
- Poll: More than 75 percent of Americans support strengthening Social Security
- In the hands of Republicans, Social Security is at serious risk
- 2022: What will your health care costs be in retirement?
Leave a Reply