Inflation has become a very serious problem for people in the United States. This problem affects elderly people on Social Security retirement, but also other people on benefits. With this increase in prices, many pensioners cannot have enough money to meet all the payments. For this very reason, some legislators have created a plan to increase Social Security income by $2,400 per year.
This plan to increase Social Security is a new Bill that could fix much of the United States’ trust fund problems. In addition, it would only influence the taxes of a small portion of the population, so the vast majority would have no problems in this regard. On the other hand, it is also important to know that it seems like a fair law.
Since the Social Security trustees announced earlier this year that the fund was going to run out soon, Congress and the United States government have been devising various plans. Among these plans, this new bill seems very interesting and very easy to complete.
What does the new bill change?
This new bill directly changes only one thing, the taxes of people with a higher salary. This means that people who have an average salary will not have problems with taxes. Social Security will see a benefit if this happens, as they will collect a large amount of money which will cause the trust funds to increase.
Workers contribute their money to Social Security on the first $147,000 per year. After that amount, no extra tax is paid. There is a large amount of tax that can be raised there that will be done after this bill. The problem is that there may also be a little bit of cheating on the part of many workers. According to CBSNews, the bill proposes that people earning from $147,000 to $250,000 pay the same taxes as before and that it is at $250,000 and above when taxes increase.
Increasing funds for Social Security, the first goal
The first objective of this bill is to increase funds for Social Security. Thanks to this, the Government would have more money to pay Social Security for more years. That is the main objective. But it would achieve something else that would also be a great benefit for retired people.
Thanks to this, people who receive Social Security retirement benefits would have an increase in their benefit of $2,400 a year. This increase would mean that benefits would go up $200 per month. This bill, proposed by Representative Peter DeFazio and Senator Bernie Sanders, would greatly change the amount of background income and give retirees a big advantage for the future.