United States retirees could be in for a treat come 2023. A new bill would increase Social Security benefits by $200 per month, for a total increase of $2,400 per year. This would make retirees have greater purchasing power. With this increase in money and the Social Security Administration’s COLA, retirees would have a lot more money for next year, although that would not mean they would have enough money to deal with inflation.
But for this to end well the bill must pass. Congress has already received the proposal and everything is pending that it finally happens. Thanks to this new measure, the elderly could live through inflation with less difficulty. However, it is not yet possible to know if Social Security will really have this increase.
The new bill to increase Social Security
Democratic Congressman Peter DeFazio and Senator Bernie Sanders introduced this new bill last June 9. Thanks to this bill, all seniors who turn 62 or older in 2023 will receive an extra contribution of $200 per month. Something really important if we take into account inflation and the increase in general prices.
In addition to this, DeFazio and Sanders’ new Bill proposes to increase the trust funds. According to the Social Security Administration, the trust funds to pay benefits will be exhausted by 2035. Through these new measures, Social Security will have no more problems, at least for a long time to come.
What does the new bill consist of?
This new Bill consists of something very basic and easy to do. These two congressmen have proposed to Congress to tax the highest salaries. Through this simple operation, Social Security will be able to collect money from the people who have the highest salaries in the United States. This would negatively affect a small portion of the population, but would cause a large portion to see good results.
Currently, annual salaries over $147,000 do not have to pay extra taxes. With this new Bill, incomes over $250,000 would have to pay to offset the country’s economy. We still don’t know if in the end this bill will pass or not. But what we do know is that it is the beginning of a move towards a place with more opportunities for Social Security beneficiaries.