We are entering the second week of the Biden Presidency and it looks like he is working on keeping many of his campaign promises. To that end, let’s review some of his proposals specific to Social Security.
- He has repeatedly said that he would raise taxes on corporations and on those earning over $400,000 a year.
- He would raise benefits for long-term low wage earners, widow(er)s from dual earner couples, caregivers, government workers and long-term beneficiaries to get a guaranteed minimum benefit of 125% of the federal poverty level.
- Changes to Supplemental Social Security Income by adjusting rules that look at in kind contributions, including assets and caregiver support.
- A suggestion that has been supported by both parties is to change the vehicle that drives annual benefit increases. Currently, it is calculated using something called CPI-W, Consumer Price Index for Urban Wage Earners, problem with this is that it does not reflect the needs of seniors. Instead, there may be consensus to use an index that more heavily weighs healthcare needs, the CPI-E, Consumer Price Index for the Elderly.
- Biden has also indicated that he would extend Social Security solvency by five years. While not ideal, we are within 14 years of insolvency, so five years is far better than nothing.
