Here is what is happening now…
In light of soaring inflation, the Social Security Administration announced it would be increasing social security payments by 5.9% in 2022. Similar to inflation, this figure represents the highest increase in four decades. A new bill by Congress could raise the payment further.
Rep. John Larson (D-Conn.), who introduced the new bill, made a startling revelation when announcing the new bill: the social security program would run out of funds by 2034, which could result in a 20% drop in benefits.
President Joe Biden, during his time on the campaign trail, said he would take a look at the social security program.
At the time, Biden campaigned on raising the Social Security income tax threshold to a maximum of $400,000, which would generate $700 billion in revenue in ten years. Biden also proposed that payments of at least 125% of the poverty line be made to retirees.
Now, it seems Larson’s bill could bring those promises to fruition.
On Tuesday (March 15), Larson, the House Ways and Means Social Security Subcommittee chairman, introduced the Social Security 2100: A Sacred Trust to the committee.
The bill tackles the possibility of the program running out of funds, expands social security benefits, and increases payments by 2% to the average beneficiary.
According to Larson, the legislation has garnered 200 cosponsors and achieved the endorsement of 100 advocacy groups.
In a statement, Larson noted that it was the pandemic that “underscored what we already knew and exacerbated systemic inequities,” adding that “current benefits are not enough.”
He mentioned that “Five million seniors are living in poverty,” something he blamed on “longstanding discrimination in the labor force” and primarily affected “people of color and women.”
He continued his statements, saying, “With 10,000 Baby Boomers a day becoming eligible, and with Millennials needing Social Security more than any generation, the time for Congress to act is now.”