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Proposed changes

The Social Security 2100 Act would extend the program’s solvency into the next century. Right now, the bill has more than 200 co-sponsors.

It is one of several proposals that have come up to address Social Security and Medicare in the past five years, according to Jamie Hopkins, director of retirement research at Carson Group.

“The Social Security 2100 Act is probably the only one that has garnered real attention and support,” Hopkins said.

The proposal would give those who are or will be receiving benefits a raise that is the equivalent of 2% of the average benefit. It would change the formula upon which annual cost-of-living adjustments are calculated, using instead the Consumer Price Index for the Elderly as a gauge for retirees’ expenses. It would also set the new minimum benefit at 25% above the poverty line.

The plan also would raise the limit for non-Social Security income before benefits begin to be taxed. The new limits would go to $50,000 for individuals and $100,000 for couples, up from the current $25,000 and $32,000 thresholds.

In order to pay for those changes, the bill calls for raising payroll taxes on wages over $400,000. Wages up to $132,900 are currently taxed.

It also calls for increased payroll contributions from workers and employers. That rate would increase to 7.4% from 6.2% and would be gradually phased in from 2020 to 2043. For the average worker, this would cost an estimated 50 cents more per week every year.

The plan has the support of Social Security reform advocates including the National Committee to Preserve Social Security and

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Originally posted by jon-nyc:
I just hate the way they’re protecting their most important constituency - middle and upper middle class folks making 130-400. So asinine to have that group immune from the increase.