Seniors and Social Security beneficiaries are really feeling the impacts of inflation.
A new bill would give seniors an additional $2,400 a year.
Where did this bill come from?
The Social Security Expansion Act has been introduced by Peter DeFazio, and Senator Bernie Sanders. The plan came out after the SSA said that within roughly 13 years Americans will stop receiving their full Social Security benefits without action.
Social Security benefices get a yearly raise called the cost-of-living adjustment (COLA). This raise is based on inflation and is supposed to keep pace with rising costs.
The latest COLA raise was 5.9%, but in May inflation reached 8.6%. The money the beneficiaries are getting isn’t enough. This bill aims to lessen the strain by providing an additional $200 per monthly check– $2,400 annually.
The expansion act includes buttressing the program’s funding by applying the Social Security payroll tax on all income above $250,000. As of now, earnings above $147,000 aren’t subject to the Social Security tax.
The bill will likely face obstacles in Congress, but hopefully, it will result in positive changes to the Social Security system.