The Democratic Representative John B. Larson is in charge of a new proposal. This proposal could help Social Security collect more money to fund future retirement, SSDI, survivor, and spousal benefits.
For your information, this reform is in the Social Security 2100 Act of 2023. The main goal of this reform is to make high earners pay taxes. Apparently, this measure will only affect 1.8% of taxpayers said NewsWeeK.
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The amount of money you must earn to pay more taxes will be $400,000. So, if you are a really high earner, you may end up paying more taxes if this new proposal succeeds.
What is the current taxable maximum Social Security has?
In 2023, the taxable maximum is $160,200. However, it will soon increase to $168,600 as soon as 2024 comes. Then, more Americans will have to pay more money in taxes.
The maximum amount a taxpayer can pay to Social Security is not even $10,000 per year. Bear in mind that a worker pays 6.2% to the Administration. This money is taken from the worker’s payroll.
With the new proposal, those whose earnings go over $400,000 would have to pay more taxes. The maximum they would contribute would be approximately $47,132.
Apart from this measure, there are a few more. For example, there could be an only fund for all the benefits Social Security pays. Rather than having three, it could be more efficient to have 1.
What other measures include the Social Security 2100 Act?
Despite the fact that it has not been voted on yet, there are a few measures that you may be interested in. Apparently, it may also bring a 2% benefit increase to those on Social Security.
What is more, many retirees and disability beneficiaries complain about the fact that they are constantly losing buying power. They have the feeling that as inflation soars, they can buy fewer things.
The new COLA is not enough to make up for the loss of purchasing power. Therefore, there is a proposal to use a COLA that is more accurate and can help seniors financially.
Anyway, it is still uncertain when this new measure could be voted on. The Social Security time is running out since by 2034 there will not be enough money to pay all the benefits. So cuts are expected.