A Critical Look at H.R. 5723 – the Social Security 2100 Act - CATO.org
Contrary to reports from some media outlets (see yesterday’s post on this website), CATO Institute Director of Budget and Entitlement Policy Romina Boccia reports there is definite movement on H.R. 5723, the Social Security 2100 Act proposed last year by Rep. John Larson (D‑CT), with the potential for the bill to hit the House floor prior to the November elections. In a post on cato.org, Ms. Boccia discusses the Act’s intended expansion of Social Security and questions its politically-driven nature.
Of particular note in her post, Ms. Boccia rightfully singles out the short-term nature of the benefit proposals included in the legislation and the apparent surrender of intent to ensure long-term solvency for a program clearly in financial peril. Her article also cites the lack of transparency associated with the temporary nature of the expansion recommendations, as well as the mathematical reality that the Act’s tax provisions are at long-range odds with the “no tax increase for families earning under $400,000” pledge.
Ms. Boccia’s article closes with a reference to a communication from Social Security Chief Actuary Stephen Goss thoroughly detailing how the Act would affect Social Security’s finances in the short run. It’s a trip into the weeds, for sure, and as Ms. Boccia points out, somewhat immaterial given the potential that the short-term changes would reach permanence down the road.
Read Ms. Boccia’s insightful analysis here…
As a Sr citizen who paid taxes on income as well as SSA / Medicare taxes during my 45 year career, Please consider approval of both HR 5723, to update or eliminate taxing SSA payments (which theoretically came from my already taxed earnings) as well as HR2729, providing reimbursement for medical expenses incurred outside the US for US seniors living in Mexico and paying Medicare B premiums.
Mr. Reavy:
Thank you for your comment! Regarding the taxation of Social Security benefits, please note that AMAC has gone on record with support of H.R. 3206 (the Senior Citizen Tax Elimination Act) calling for elimination of benefits from the computation of income tax liability. The Social Security 2100 Act currently active on Congress (H.R. 4583, since H.R. 5723 was active on the previous Congress) remains “referred to Committee.” Also, note that AMAC has included a recommendation in its Social Security Guarantee proposed legislation to either totally eliminate the inclusion of Social Security benefits in the federal tax equation or adjust the thresholds for taxation to account for inflation since their original adoption decades ago.
AMAC has not to-date taken a position on H.R. 2729 (Commission on Americans Living Abroad Act of 2023); I will pass your comment over to our colleagues at AMAC Action for consideration.
Thanks again for contacting us.
Gerry Hafer
AMAC Foundation Social Security Advisor
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