President Biden and Social Security Changes? None yet. - AMAC & The Motley Fool
With insolvency just a decade away, something will have to give on Social Security, as benefits will be cut 23% for all automatically without reform. Keith Speights looks back at various proposals Biden has openly supported over his years in public life. Though the president hasn’t put forward a plan to raise payroll taxes he has called for a tax increase on all annual earnings above $400k to help preserve Medicare, the federal healthcare program. A recent poll indicates 58% of Americans favor this idea though it doesn’t necessarily mean similar numbers of Americans would favor raising the payroll tax cap to $400k to help fund Social Security. The Social Security Administration estimates that raising the payroll tax cap to $400k beginning in 2024 would eliminate roughly 64% of the projected Social Security shortfall. Thus, more changes will be needed. Polls also show a majority against raising the retirement age and for any benefit cuts. Full article here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved without tax increases by changing cost of living adjustments, increasing the retirement age, and modest adjustments to the highest income beneficiaries. The AMAC plan also suggests eliminating taxation of benefits, or at least annually adjusting the amount taxed for inflation, and eliminating the reduction of benefits for those who work before full retirement age. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with a great many congressional offices and their staffs over the past decade. See it here.