This year has brought a lot of news about Social Security and difficult times for the federal agency, especially in the previous months when the SSA had to face harsh criticism from beneficiaries because of their overpayment tactics. Nancy Altman, president of Social Security Works, recently said that Social Security is on the ballot. She believes that if President Biden is elected, there will be progress toward reducing the Social Security deficit.
However, there will be little development during the next one Trump governorst. According to Altman, the Democratic Party supports increasing benefits without cutting them and returning Social Security to a long-term actuarial balance. Democrats have introduced several bills; two of the most prominent are the Social Security Act of 2100 and the Social Security Extension Act. Meanwhile, Republicans may vote against a bill that increases certain Social Security funding, but they may not support it because it is popular with their citizens but not liked by their billionaire backers.
The bill will pass the House of Representatives with or without their support, but will be thrown in the Senate, making it unlikely to become law next year. However, a bill to restore Social Security’s balance by increasing designated income could become law in 2027. Trump and his fellow Republicans oppose all income increasesleaving only benefit cuts, which can trigger automatic cuts.
6 new Social Security changes to save Social Security
Although few policy analysts foresee significant changes to Social Security in the run-up to or immediately after the November election, some ideas have emerged, such as investing trust fund assets, eliminating tax incentives associated with 401(k) plans, and using the subsequent revenue savings to support the program. The Republican Study Committee — which includes about 80% of House Republicans — called for tying the Social Security eligibility age to life expectancy in its fiscal 2025 budget proposal in late March. Please read below the 6 new Social Security changes that are already in Congress:
Fiscal Commission Act of 2023
In mid-January, the House Budget Committee approved legislation to create a fiscal commission to tackle the national debt and make “fast-track” reforms to Social Security, including possible cuts. The bill was sent to parliament with 26 sponsors. This legislation was introduced in September 2023 and is sponsored by Rep. Bill Huizenga and R-Mich.
Law “You win, you keep”
The bill, introduced Jan. 26 and co-sponsored by 11 Democrats, repeals the federal tax on Social Security benefits starting in 2025, allowing the Social Security Administration to continue making payments on time and in full until 2054. 20 years more than the current forecast. of 2034, according to an analysis by the Office of the Chief Actuary.
Fiscal House Budget Committee 2025
The bill creates a bipartisan fiscal commission to “fast track” potential reforms to Social Security and other entitlement programs. The budget committee approved the measure in early March. In addition, the Republican budget refers to January of the House Budget Committee. 18 voted to advance HR 5779, the Fiscal Commission Act of 2023, which would create a fiscal commission to address the national debt.
The Elderly Benefit and COLA Enhancement Act
The legislation, introduced March 19 and co-sponsored by five lawmakers, would require the Social Security Administration to adjust benefits for Americans age 62 and older based on the Consumer Price Index (CPI).
Social Security Overpayment Fairness Act
The bill, which was introduced May 7 and referred to the House Ways and Means Committee, would give Social Security beneficiaries who receive overpayment letters 120 days to respond before the refund begins, up from 30 days right now.
Social Security Protection and Medicare Act
The measure, introduced June 21, would require the Comptroller General of the United States to develop a plan to protect Social Security and Medicare benefits from the effects of inflation. The bill has been referred to the Ways and Means Committee and the Energy and Commerce Committee.
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