Social Security 2100 Act
John Larson (D-CT) has introduced legislation that would expand and update Social Security, ensuring its solvency through 2100. It has been over 30 years since an overhaul of Social Security. The bill was originally introduced in 2014 but did not stand a chance of advancing in the House when the Republicans held the majority. The bill has over 200 original sponsors.
Key provisions of the bill are raising benefits to current and future beneficiaries, reducing taxes on Social Security income and ensuring the system remains solvent for the rest of this century.
The bill would provide a benefit increase of approximately 2%, improves the annual cost of living (COLA) adjustment to ensure benefits are not eroded by inflation, and sets the minimum benefit to 25% above the federal poverty line. It would also cut the taxes of 12 million seniors. Presently, Social Security benefits are taxed if you have non-Social Security income exceeding $25,000 for an individual or $32,000 for couples. This would raise that threshold to $50,000 and $100,000 respectively.
The increased benefits will be funded by applying the tax to income over $400,000 and very gradually increasing the rate of tax from the current 6.2% to 7.4% by 2043. For the average worker this would mean paying an additional 50 cents per week every year to keep the system solvent.
The Republican plan to keep Social Security solvent is to gradually raise the retirement age to 70. Future beneficiaries would have to wait longer to collect benefits or accept a steeply cut benefit if taking Social Security prior to full retirement age. Either way, it reduces lifetime payout, thus saving the system money.
Expansion of Social Security benefits is broadly supported by Democrats and Republican voters alike. Rep. Jim Cooper (D-TN) has not yet signed on to this bill. Click here to contact Rep Cooper and ask him to become a sponsor of this legislation.