Many people believe that social security runs out of money in the next few years. Given the importance of Social Security, this risk is not something most people can ignore. American senators are aware of this fact too. This is the reason Sen. Bernie Sanders (I-Vt.) has rolled out Social Security Legislation that bolsters social security payments and ensures that high-income earners pay more towards the retirement benefits system.
Who Introduced the Social Security Legislation?
The legislation that bolsters social security payments was rolled out by Sen. Bernie Sanders (I-Vt.) and is legislation that ensures that people who earn a high income are paying more towards the social security system so that everyone can benefit from it. Sanders also made a claim that anyone who claims that Social Security is going broke is lying as social security benefits can be increased for millions of Americans. He went on to say that the long-term viability of social security could also be improved. Both these solutions are only possible if people have a political will to ask the wealthiest Americans to pay more than they currently are.
Effects of the Social Security Legislation
If implemented, this new Social Security Legislation would increase the social security for seniors, including current and former Federal Employees who make less than USD 16,000 by around USD 1,300. It will also boost the amount of taxes paid by the high-income earners by subjecting incomes of more than $250,000 to payroll taxes.
While talking about the legislation he introduced, Sanders mentioned that the proposal has an overwhelming majority of support in both parties. He pointed to the Public Policy Polling survey conducted in October 2016 that found that over 72 percent of people in America support the increasing of the entitlement program.
On the other hand, Rep. Peter DeFazio (D-Ore.) is seen introducing the House version of this bill.
There is a dire need to increase the social security payments as the trust fund of social security is expected to be solvent through 2034 after which it is estimated that the social security will be able to pay only 79 percent of the benefits due.
If Sander’s legislation is passed, the solvency will increase through 2078. This was mentioned in a report offered by the social security administration. The bill, if introduced will also increase the monthly social security payments for most of the beneficiaries by only $43 per month starting at age 80 and $73 starting at age 90. This breakdown of the bill was provided by Sander’s office.
Speaking Against Trump
Sanders also blasted President Trump recently from the Senate floor and argued that the picking budget hawk Rep. Mick Mulvaney (R-S.C.) as the budget chief was out of the line as it is not according to Trump’s campaign pledge to not cut Medicaid, Medicare or Social Security.
Sanders said that if, then, candidate Trump had run his campaign by saying that he is going to cut the social security payments if elected as President, Congressman Mulvaney would have been the right person he should bring forth as the Director of the Office of Budget and Management.
All in all, it can be seen that the Social Security Legislation introduced by Sander’s would help in boosting the social security payments in the future, even if by only a very small amount for the average recipient. It will also ensure that people who earn more than others pay more towards the retirement benefits system. If this bill is passed, one of the most feared social security facts, SSA running out of money would be postponed, and people would get some relief.