Social security was recently revamped with the bill called Social Security 2100: A Sacred Trust.
This bill works to cut taxes and strengthen benefits.
There was a recent bill called Social Security 2100 from 2019, and this is an updated version.
How does the Social Security 2100 bill work?
The 2019 version increased income to support four major enhancements. According to MarketWatch, these included using the consumer-price index for the elderly (CPI-E), raise the first factor in the benefit formula from 90% to 93%, increase thresholds for taxation of benefits under the personal income tax, and increase the special minimum benefit for those with very low earnings.
For 2021, the upstate makes it so there are no tax increases on people earning under $400,000 as well as temporary programs that provide a catalyst for making changes permanent.
For 2021 the maximum wage that can be taxed is $142,800, but for 2022 it will go up to $147,000.
Related: Social Security & Medicare: How much comes out of my benefits to cover Medicare?
Money earned past that cap is not taxed for social security.
These enhancements are only designed to last for the next 5 years before disappearing.
The changes protect low income workers by setting the minimum benefit 25% above the poverty line.
Related: Social Security: All the types of benefits for dependents of people with social security
Social security is designed to help seniors enjoy their retirement and on average only replaces about 40% of lost income due to retiring.
If this bill goes into law, everyone receiving social security will get a raise in their benefits by about 2%.
The new COLA adjustment will bring an average of $92 dollars more a month in for claimants.
Related: Social Security: Applying for lump sum death benefits worth $255
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