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Congressional Push for Two Key Social Security Changes Underway - The Motley Fool
By now, and especially as tax season gets underway, most folks know that the “no tax on Social Security” slogan is a bit of a misnomer. The tax will still be computed, but subsequently offset (for many filers) by a higher “bonus” standard deduction. It’s also known that the “bonus” doesn’t apply to all seniors, and that the workaround is a temporary fix set to expire after tax year 2028.
What’s also concerning to many seniors is that Social Security’s current cost-of-living adjustment (COLA) process is unable to keep pace with the inflationary pressures retirees typically face. The Senior Citizens League, for example, has gone on record claiming that “Social Security Benefits Lose 36% Of Buying Power Since 2000.” The public fallout from this Social Security issue has led to calls for a new, improved methodology for computing the COLA.
Enter congressional action: the “You Earned It, You Keep It Act” has resurfaced in Washington, along with the “Boosting Benefits and COLAs for Seniors Act,” both intended to address these Social Security shortcomings. The Motley Fool’s Trevor Jennewine, in a post on their website, examines these two proposals and assesses their impact on Social Security’s solvency.