The latest proposal would alter the formula used to determine Social Security payouts, possibly resulting in more money in claimants’ pockets.
The Anticipated Hike For Social Security Recipients
The estimated rise for Social Security recipients has decreased from the double-digit numbers forecast just one month ago due to a mild cooling of inflationary rates. In only a few weeks, the precise amount of the hike will be revealed.
According to data from the Senior Citizens League, the most recent forecast is for a COLA, of 8.7%, about a percentage point less than predictions from a month earlier.
Even though it is less than anticipated, an 8.7% increase is uncommon. It would be the most significant payment most Social Security recipients alive now have ever received, raising the average retiree’s costs by almost $144.10 on average.
A Bill Introduced By John Larson
“Social Security 2011: A Sacred Trust,” a bill that U.S. Rep. John Larson will introduce, D-Conn., would, among other things, stop using the CPI for Urban Wage Earners as well as Clerical Workers to calculate annual adjustments.
Some critics claim that the CPI understates costs associated with housing and healthcare for senior citizens. Instead, the plan would switch to assessments derived from the CPI for the Senior, which gives more weight to expenditures for goods and services like food, housing, clothing, and medical care.
As compensation for what Larson called inadequate COLAs since 1983, the plan would also increase benefits for existing and new Social Security claimants, including those receiving a pension, disability, or dependant payments, by an overall mean of 2% of benefits.
The 5-month waiting time for benefits would be eliminated, an essential minimal advantage of 25% over the poverty line would be established, and caregiver allowances would be offered to people who take time from work to look after children or other obligations.
In exchange, the plan would alter the method for collecting payroll taxes. Currently, salaries over $142,800 are not subject to payroll taxes. Applying tax payments to all wages above $400,000 would change that. Larson will introduce the measures in the upcoming day’s reports AL.
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