Social Security Could Increase By $2,400 Per Year In US


Social Security has Many financial solvency problems and this new bill can increase the benefits instead of reducing them

The ravages of inflation on retirees in the USA are many. Social Security retirement benefit checks in a lot of cases are not sufficient. And, to top it off, it appears that the economic funds are depleted and soon Social Security will not be able to pay all full retirements. This could be the case, although a new law proposal that would divert this completely.
With this new bill, not only would benefits not be reduced. This new bill would also increase the money available to pay them. And all in a very logical and hassle-free way for retirees collecting their Social Security benefit. This new bill is very interesting because many retirees in USA who collect Social Security have no other source of income.
This Bill is intended to increase Social Security income. The main objective is that revenues do not go down, but with this strategy there may be higher revenues so that the trust funds will not be in trouble for next many years to come. The trustees predict that the funds will end in the yer 2035.

But all is not lost. Senators Elizabeth Warren and Bernie Sanders have created a bill to eliminate this problem. This bill is called the Social Security Expansion Act. With this new Bill they are asking for an increase of $2400 per year (or $200 per month). According to the 2 senators, this is possible by raising taxes on people who earn more money annually.

Who would be affected by this tax increase?

Annual taxes have a maximum in the US. That maximum is on the salary of people earning up to $147,000 annually. Past that point, the amount of tax is the same. This means that a person who earns $2 million annually will pay the same amount in taxes as if they earn the aforementioned amount. This directly affects the Social Security.

We aren't assured exactly if this bill will have an effect or not, because it is only a proposal, but this bill would raise taxes on the people who are earning high amount of money. General taxes are 6.2 percent of the total salary. For the self-employed, taxes are 12.4 percent. With this new law proposal, those who earn a very high amount of salary would pay the same as the self-employed, 12.4 percent. Thanks to this bill, through this bill the Social Security could obtain sufficient funds so that, in the future, it could even increase the retirement benefits.

Many of workers in USA don’t make that much money that is mentioned above, so don’t worry about a tax increase if you make lower than $175,000 per year. That doesn’t affect Social Security benefits either, since none come to that much money.

With this new Bill, it is possible that the trust funds will increase in order to pay all pensions for longer. On top of that, Social Security could pay up to $200 a month more to all retirees. Anyway, this proposal is not accepted, so we will have to wait a while to see if it finally becomes a reality.

When to apply for retirement pay?

It depends on your need when you Social Security retirement pay depends on your needs. The best option is always the later the better to apply for it, but if you are out of work and you need money, you can always apply earlier for retirement pay. If you apply for it before the age of 62, the amount of money will be much lesser than actual amount you are going to receive after the age of 62. But, as we said before, it all depends on what needs you have and, of course, if you are working or totally unemployed.

Now that you know how to apply for Social Security and when is the best time to do it, you just have to start applying to enjoy your retirement and the rest you deserve. If you need anymore info you may let us know through contact form. 

No comments