New House Bill Strengthens Social Security Benefits
While there’s a move—led by Republican lawmakers but with support from some Democrats—to cut Social Security benefits through a so-called “chained" CPI and raise the retirement age, a bill introduced in the House this week goes in the other direction: it strengthens Social Security benefits.
The Strengthening Social Security Act (H.R. 3118) introduced by Rep. Linda Sánchez (D-Calif.) eschews the "chained" CPI cost-of-living formula and instead offers a cost-of-living adjustment that reflects the actual costs of beneficiaries and makes other adjustments to the benefits formula. The change is estimated to add about $70 a month to Social Security recipients’ checks in addition to a higher COLA.
Click here to send an email to your representative urging support of the bill.
It also raises the cap on taxable income so that wealthy Americans pay their fair share into Social Security and strengthen the trust fund. Says Sánchez:
The Strengthening Social Security Act not only improves the standard of living for current and future beneficiaries, but it would extend the solvency of one of our country’s most successful anti-poverty programs.
Rep. Rush Holt (D-N.J.), a bill co-sponsor, says, “Millionaires and billionaires are being given a free pass: an absolute cap on their contributions to Social Security.”
No matter how many millions of dollars they earn, they don’t contribute even a penny more in taxes. This is wrong. It’s time to preserve and expand Social Security by asking the very wealthy to pay the same Social Security tax rate as everyone else.
Combined, these changes are estimated to preserve the Social Security Trust Fund through 2049 and reduce the 75-year actuarial deficit by about 50%.
The Alliance for Retired Americans says:
At a time when the retirement income deficit is $6.6 trillion, the American people are calling for strengthening—not cutting—Social Security. It is essential that Congress work to strengthen this lifeline of retirement, disability and survivors’ security to ensure that Americans of all ages can count on the benefits that they have been promised.
Click here to send an email to your representative urging support of the bill.
At the recent 2013 AFL-CIO Convention, delegates approved a resolution calling for increasing benefits and lifting the Social Security tax cap.
The House bill is a companion to S. 567, introduced in March by Sen. Tom Harkin (D-Iowa).
