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Tag: John Larson

  • Top Democratic presidential candidates support strengthening Social Security

    Top Democratic presidential candidates support strengthening Social Security

    The top four Democratic presidential candidates may be split on health care reform, two favor the public option and two favor Medicare for All. But, Nancy Altman writes in Forbes that all four top candidates, Bernie Sanders, Elizabeth Warren, Joe Biden and Pete Buttigieg, support strengthening and expanding Social Security. No matter who becomes the Democratic candidate, if you support expanding Social Security, it will be critical to vote.

    Social Security is a national treasure that virtually all Democratic members of Congress support expanding. In fact, nine out of ten members of the House of Representatives support Congressman John Larson’s Social Security 2100 Act. If enacted, Social Security benefits would rise, and its Trust Fund would be strong for many many decades.

    Increasing Social Security benefits would  help older Americans in retirement. Today, a large portion of older adults struggle to afford their basic needs. Few people can rely on pensions or retirement savings. Many rely almost exclusively or heavily on Social Security for their income. Social Security income is guaranteed and cost-effective, unlike Wall Street stock investments and 401(k) plans.

    Most Republicans in Congress would like to cut Social Security benefits even though their constituents overwhelmingly support Social Security. They strive to create a wedge between older adults and younger Americans. In fact, young Americans need Social Security both when they retire and, now, to help support their parents and grandparents. Without adequate Social Security benefits, young Americans would be left worrying even more about their parents’ financial well-being.
    Social Security is social insurance, meaning that everyone contributes to it and everyone who contributes benefits. It builds social solidarity. Americans all count on it for themselves and their families. Social Security is an earned benefit, unlike other federal and state social programs that are for particular populations in need. For our personal and collective security, we must ensure its continued well-being.
    Social Security benefits need to be coupled with coverage for home and community-based care. Medicare for All, which Senators Sanders and Warren support, covers these long-term services. Buttigieg proposes giving people $90 a day to help with these costs, which is far more than the US guarantees older adults today. But, his plan does not come close to providing the most vulnerable Americans with adequate coverage.
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  • Social Security benefits will rise 1.6 percent in 2020

    Social Security benefits will rise 1.6 percent in 2020

    As a result of inflation, people on fixed incomes watch their incomes decline in value over time. Fortunately, Social Security’s benefits are adjusted every year automatically to offset increases in inflation. Its modest, but vital, benefits do not erode over time. In 2020, Social Security benefits will rise 1.6 percent. This adjustment is not an increase in benefits. It simply allows people to tread water, to help people maintain their purchasing power.

    Unfortunately, the government’s cost of living adjustment for Social Security is based on inflation experienced by workers and not by retirees and people with disabilities who are unable to work. Older people and people with disabilities have, on average, higher health care costs; those costs tend to rise considerably faster than overall inflation. For that and other reasons, people receiving Social Security generally experience higher cost of living increases than workers, and Social Security adjustments are inappropriately low. Even with the adjustments, Social Security benefits have less value from one year to the next. Nevertheless, inadequate adjustments are better than none.

    In 2020, people on Social Security will receive an average cost of living adjustment or COLA of $24 a month or $288 a year. Some of this increase, about $8.80 a month, will go to covering the increase in their standard Medicare Part B premium. The 2020 standard Part B premium is projected to increase from $135.50 to around $144.30 a month.

    Social Security benefits, which are modest, but vital, should be increased, as US Representative John Larson, Senator Elizabeth Warren and Senator Bernie Sanders have all proposed. And, Congress should enact a better, more accurate measure of inflation for people receiving Social Security benefits. After a lifetime of work, Americans should have enough guaranteed Social Security income to maintain their standards of living.

    Congress also should improve Medicare by expanding it to cover such vital services as hearing aids, dental work, and vision care. Premiums, copays, and deductibles should be eliminated. And everyone should be covered. Medicare for All will improve the nation’s health outcomes, while costing far less than what we spend today.

    It is long past time to enact a more accurate cost of living adjustment for Social Security, expand its benefits, improve Medicare, and extend it to everyone.  That is profoundly wise policy. It also represents the views of the vast majority of us.

    If you want Congress to expand Social Security, please sign this petition.

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  • Nearly half of older households have no retirement savings

    Nearly half of older households have no retirement savings

    A new GAO report, based on a Survey of Consumer Finances from 2017, finds that nearly half of all households headed by someone 55 or older in the US have no retirement savings. Most households have low retirement savings. The US retirement system needs improving.

    There is a good likelihood that many Americans will outlive their retirement savings. Health care costs and other expenses are keeping people from being able to save pre-retirement. On top of that, an increasing number of people are retiring and living longer.

    At the same time, more and more companies are eliminating pensions and replacing them with one-time payments that are worth far less. The Treasury and Labor Departments, which oversee these employer plans, are not focused on protecting workers’ retirement security, reports Josh Gotbaum for The Atlantic.

    President Trump recently issued an executive order that calls for expanding workplace retirement plans as a way to strengthen people’s retirement security. But, there are already thousands of these retirement plans. The executive order is, in fact, a gift to Wall Street. It gives financial-services companies more ways to collect workers’ money and receive fees for their work. It does nothing to ensure that Americans can retire with dignity.

    Americans should demand retirement security from our elected officials. Social Security needs strengthening as Senator Bernie Sanders and Congressman John Larson have proposed. The Social Security 2100 Act would fully fund Social Security for the rest of the 21st century. No Republicans are co-sponsors.

    If you want Congress to expand Social Security, please sign this petition.

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  • Congressman Larson introduces the Social Security 2100 Act

    Congressman Larson introduces the Social Security 2100 Act

    Today, Franklin D Roosevelt’s birthday, Congressman John Larson (D-CT), Chair of the US House of Representatives’ Social Security Subcommittee of the Ways and Means Committee introduced the Social Security 2100 Act. If passed, it would be the biggest improvement to Social Security in more than 35 years, increasing benefits and strengthening the Social Security Trust Fund. And, it already has more than 200 co-sponsors!

    The Social Security 2100 Act increases Social Security benefits for everyone an average of 2 percent. And, it ensures people’s benefits rise appropriately with inflation. Historically, the inflation calculation has not taken into consideration the basket of services older people buy, particularly health care services, which have risen in cost faster than other services.

    The Act recognizes that no one should retire in poverty; it helps people with low incomes by raising the minimum monthly Social Security benefit to 25 percent above the federal poverty level. At the same time, it protects people so that any increases in benefits will not affect people’s eligibility for Medicaid or reduce their SSI benefits.

    And, it lifts the cap on Social Security payroll contributions so that wealthy Americans pay their fair share of contributions throughout the year. Everyone with incomes above $400,000 would make payroll contributions.

    The Act also reduces taxes for 12 million people receiving Social Security benefits with incomes over $25,000 and under $50,000 and couples with incomes over $50,000 and under $100,000. Today, individuals receiving Social Security benefits are taxed on their benefits if they have additional individual income over $25,000; couples are taxed on their benefits if they have additional income over $32,000.

    The Act recognizes that Social Security, is a cost-effective government program that provides critical economic security to tens of millions of Americans. Americans earn their benefits through payroll contributions.

    The Act also ensures that Social Security remains solvent for generations to come. Beginning in 2020, the payroll contribution for workers and employers would increase incrementally to 0.6 percent each by 2043, or a total of 7.4 percent from 6.2 percent today. This means an additional average worker contribution of .50 cents a week in 2043. 

    Congressman Larson and the bill’s cosponsors have listened to their constituents. More than seven in ten Americans support expanding Social Security.

    If you want Congress to expand Social Security, please sign this petition.

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