Strengthening Social Security: Tax and Benefit Adjustments
This act aims to strengthen the Social Security system by changing how high incomes are taxed and how benefits are calculated. Citizens may see changes in how contributions are assessed on earnings above a certain threshold and potentially higher benefits for some groups, including widows and widowers.
Key points
Gradual taxation of earnings above the current Social Security contribution limit, starting in 2023.
Changes in how retirement and disability benefits are calculated, potentially leading to higher payments for some individuals, especially those with higher earnings.
Use of a new inflation index (Consumer Price Index for Elderly Consumers) for annual benefit adjustments, better reflecting the cost of living for seniors.
Improved benefits for widows and widowers from two-income households, potentially increasing their financial support.
Protection for SSI (Supplemental Security Income) beneficiaries from benefit reductions due to Social Security changes.
Expired
Additional Information
Print number: 117_HR_4921
Sponsor: Rep. Sánchez, Linda T. [D-CA-38]
Process start date: 2021-08-03