Discover solutions from opposite sides of the issue
Discover solutions from opposite sides of the issue

Discover solutions from opposite sides of the issue

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According to the 2021 Annual Report of the Social Security Board of Trustees, the trust funds that distribute pensions, disability and other social security benefits will be exhausted by 2034.

See: 5 social benefits you can claim online
Find: 6 reasons why you do not get social security

While this does not mean that social security benefits will no longer be paid out, it does mean that cash reserves will be depleted and that social security will only be able to pay out what is paid in social security taxes each year.

If this happens, social security will only be able to pay 78% of the benefits to which retired and disabled workers are entitled. This has sparked debate among lawmakers about the appropriate approach to correcting the social security economy.

Rep. John Larson (D-Conn.), Chair of the House Ways and Means Social Security Subcommittee, has authored “Social Security 2100: A Sacred Trust” to help increase benefits and strengthen the Social Security program. The proposal has bipartisan support among Americans and more than 200 co-sponsors in Congress, according to Larson.

“The urgency of action in the area of ​​social security is clear. The elderly are not only the most susceptible to this pandemic; as they are on fixed incomes, they are also the most susceptible to inflation. They need help and they need that now, ”Larson wrote in a letter to the Wall Street Journal.

This bill will also apply the payroll tax to salaries over $ 400,000 so that the wealthy pay the same rate as a person earning $ 50,000 a year. Significant contributions to the solvency of the Social Security program would also be made, which he claims will account for more than half of the deficit in the Social Security Trust Funds.

On the other hand, Senator Rick Scott (R-Fla.), The leader of the National Republican Senatorial Committee, has released an 11-point plan proposing a more than $ 1 trillion tax increase of “more than half of Americans , “to ensure that every household pays taxes,” the Washington Post reported.

“The change we need is to demand that those who are able to work but do not want to work pay a small amount, so we are all in this,” Scott explains in a letter to the Wall Street Journal. .

See: 15 worst states to live by just a social security check
Find: The average social security check the year you were born

Scott’s agenda also plans to settle all federal legislation, which includes Social Security and Medicare, in 5 years. “If a law is worth keeping, Congress can pass it again,” he claims in his Rescue America plan.

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This article was originally published on GOBankingRates.com: Depletion of Social Security: Discover solutions from opposite sides of the issue

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