4 Ways a Biden Win in 2024 Could Impact the Future of Social Security
For years, President Joe Biden has delivered the same message on Social Security: He aims to strengthen the program while also avoiding benefit cuts, mainly by having wealthy Americans pay more in Social Security taxes. Biden drove that point home again during last week’s State of the Union address, telling Congress that he will stop anyone who tries to cut Social Security or raise the retirement age.
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The president also said, “I’ll protect and strengthen Social Security and make the wealthy pay their fair share.”
Biden’s remarks were greeted with enthusiasm by Social Security advocates who worry that some lawmakers want to cut the program as it heads for a funding shortfall within the next decade.
“Tonight, President Biden renewed his promise to protect and expand Social Security,” Nancy Altman, president of Social Security Works, said in a statement following Biden’s SOTU address. “As he explained, Social Security is fully affordable — we simply need to require the wealthiest among us to contribute their fair share.”
AARP CEO Jo Ann Jenkins pitched in as well, saying in a press release that “Americans should be able to trust that Social Security and Medicare — which they have contributed to throughout their working lives — will always be there for them. We applaud lawmakers on both sides of the aisle for their commitment to protecting these programs and will fight to ensure promises are kept.”
Biden has a list of policy initiatives he wants to implement to bolster Social Security before its Old Age and Survivors Insurance Trust runs out of money, which would cut funding by about 23%. Should Biden win re-election to the White House this year in his rematch with Republican candidate and former President Donald Trump, here are four ways he could impact the future of Social Security:
Tax earned income above $400,000, leaving wages between $168,600 and $400,000 untaxed. Currently, any wages above $168,600 are not taxed.
Change the calculation for determining annual Social Security cost-of-living adjustments so they are no longer based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. Biden favors basing the COLA on the Consumer Price Index for the Elderly.
Raise the Primary Insurance Amount age that determines how much money you’ll receive in Social Security benefits. According to The Motley Fool, Biden’s plan calls for a 1% annual increase to the PIA beginning at age 78 and continuing through age 82.
Raise the special minimum benefit for lifetime lower-wage workers to 125% of the federal poverty level for Social Security beneficiaries.
The challenge is getting these measures approved by a divided Congress — something most experts say is unlikely to happen. As The Motley Fool noted, it takes 60 votes in the 100-member U.S. Senate to amend Social Security laws, and it’s been 45 years since either party had a supermajority of 60 seats. Getting any Biden reforms approved would require about 10 Republicans to reach across the aisle and join Democrats.
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This article originally appeared on GOBankingRates.com: 4 Ways a Biden Win in 2024 Could Impact the Future of Social Security