Vice President Kamala Harris takes center stage in the 2024 presidential race, her policy positions are under scrutiny. With President Joe Biden’s endorsement, Harris is now the leading Democratic candidate, and her stance on Social Security is of particular interest. While her detailed position remains somewhat unclear, we can expect her to build on the Biden-Harris administration’s proposals. Here are five potential changes to Social Security that could occur if Harris wins the presidency.
Table of Contents
Taxing Higher Incomes
The Old Age and Survivors Insurance (OASI) Trust Fund is projected to run out of money within the next decade, leaving Social Security to rely solely on payroll taxes. To address this shortfall, the Biden-Harris administration has proposed a four-point plan targeting high-income earners. If Harris becomes president, we can expect her to enact this plan, which includes taxing earned income above $400,000 while leaving wages between $168,600 and $400,000 untaxed.
New COLA Formula
Currently, Social Security cost-of-living adjustments (COLAs) are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). However, the Biden-Harris administration favors using the Consumer Price Index for the Elderly (CPI-E), which better reflects changes in healthcare costs affecting seniors. This change could lead to more accurate COLAs and increased benefits for seniors.
Helping Americans Age 78 to 82 with Escalating Costs
The Primary Insurance Amount (PIA) determines Social Security benefits based on age and average indexed monthly earnings. The Biden-Harris team has proposed increasing the PIA for Americans between 78 and 82 to help with escalating healthcare costs later in life. This change could provide much-needed support for older Americans.
Increasing Special Minimum Social Security Benefit
Low-wage workers receive a special minimum Social Security benefit, independent of their total earnings. The Biden-Harris administration proposes increasing this minimum benefit to 125% of the federal poverty level for an individual, reducing the tax on other federal programs.
Boosting SSA Funding for Improving Service
For 2025, the Biden-Harris administration plans to increase funding for the Social Security Administration (SSA) by 9% over the 2023 enacted level. This increase aims to improve customer service at SSA field offices, state disability determination services, retiree teleservice centers, and services for individuals with disabilities and their families.
As the election approaches, these proposed changes will likely become central topics of discussion and debate. If implemented, they could signal Harris’ commitment to addressing Social Security’s financial stability and ensuring it continues to meet the needs of all beneficiaries.
FAQs
What is the current state of Social Security’s finances?
The Old Age and Survivors Insurance (OASI) Trust Fund is projected to run out of money within the next decade.
How could Social Security (COLAs) change under Harris presidency?
The administration favors using the Consumer Price Index for the Elderly (CPI-E), which better reflects changes in healthcare costs affecting seniors.
How could the special minimum Social Security benefit change?
The administration proposes increasing this minimum benefit to 125% of the federal poverty level for an individual.
What is the planned increase in funding for SSA in 2025?
A 9% increase over the 2023 enacted level to improve customer service.
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