The clock is ticking. The latest projections are that the Social Security trust fund will run out of money in less than six years. When that happens, benefits are expected to be cut by 22 percent.
Fortunately, there are a handful of lawmakers working to save Social Security by shoring up the program before the trust fund runs dry. An article by Fortune magazine outlined some of the plans:
Currently, annual pay up to $184,500 is subject to Social Security taxes — anything beyond that is not taxed. Sens. Bernie Moreno (R-Ohio) and Elizabeth Warren (D-Mass.) have proposed removing the tax cap, citing a report from the Peter G. Peterson Foundation that estimated such a change would generate about $3 trillion for the program over 10 years.
Sen. Sheldon Whitehouse (D-R.I.) and Rep. Brendan Boyle (D-Pa.) have a similar plan, but rather than eliminating the cap, they want to extend the payroll tax income threshold to $400,000 and also subject investment earnings to the levy.
Sens. Bill Cassidy (R-La.) and Tim Kaine (D-Va.) think the federal government should borrow $1.5 trillion for an investment fund that could generate gains and offer better returns than Treasury bonds.
Another option, proposed by the nonpartisan Committee for a Responsible Federal Budget, has been dubbed the “Six-Figure Limit” and targets recipients receiving the biggest benefits. The Fortune article explains this plan would “set a maximum of $100,000 for couples who are now receiving the top benefits.”
Council of Seniors is Here to Help Older Americans
Coming up with a plan to shore up Social Security is not the only concern Congress should be focused on these days. All of us here at the Council of Seniors want to improve retirees’ financial futures – and that starts with Congress enacting The SAVE Benefits Act. The passage of this bill can make up for Social Security cost-of-living adjustments (COLAs) that have let you down in recent years. If it passes, $581 will be returned to eligible seniors.
Sign our petition right now to show you’re on board with our effort.