Senior Democrats in the US Congress are setting the stage for an enhancement to social security benefits by proposing the introduction of a Social Security 2100 Act.
The legislation, which was put forward by Democratic Representatives John Larson, Conor Lamb and Jahana Hayes, is intended to expand social security benefits across the board and ensure the programme remains in place for the next 75 years and beyond.
Its aim is to finance a more generous benefit and cost-of-living adjustment formula as well as a reduction in income taxes on benefits. It would also close the social security system’s long-term funding gap by lifting the cap on income subject to payroll taxes and by raising those tax rates.
The Bill already has the support of more than 200 House Democrats, including House Ways and Means Committee Chairman Richard Neal, who relied on social security payments to help pay for college after his father died. That puts the Bill just shy of the 218-vote mark required to pass in the House.
Larson told the Huffington Post that he was confident the legislation would pass on the House floor. “It’s a tribute to the grassroots effort that’s gone into this,” he said.
To finance the new law, earnings of US$400,000 or more would be subject to the social security payroll tax. US citizens currently pay social security taxes only on the first US$132,900 they earn, based on a cap that rises with average wage growth.
The legislation would also increase the payroll tax by 1.2% for both employees and employers, phasing in the change over 24 years. The Bill likewise cuts income taxes on Social Security benefits for those receiving them by raising the income threshold at which they would be taxed.
At the same time, lawmakers have also officially reintroduced the Paycheck Fairness Act, a Bill that would protect employees from retaliation for discussing their salary, WSFA reported. The Bill would likewise limit the use of salary history in the hiring process and close loopholes in the existing equal pay laws, the Equal Pay Act of 1963 and the Lilly Ledbetter Fair Pay Act of 2009.
OTHER STORIES THAT MAY INTEREST YOU
US federal workers to receive back pay on Friday
New Jersey agrees $15 minimum wage deal
California's new governor proposes to double income tax credits for low-earners
Senior Democrats in the US Congress are setting the stage for an enhancement to social security benefits by proposing the introduction of a Social Security 2100 Act.
The legislation, which was put forward by Democratic Representatives John Larson, Conor Lamb and Jahana Hayes, is intended to expand social security benefits across the board and ensure the programme remains in place for the next 75 years and beyond.
Its aim is to finance a more generous benefit and cost-of-living adjustment formula as well as a reduction in income taxes on benefits. It would also close the social security system’s long-term funding gap by lifting the cap on income subject to payroll taxes and by raising those tax rates.
The Bill already has the support of more than 200 House Democrats, including House Ways and Means Committee Chairman Richard Neal, who relied on social security payments to help pay for college after his father died. That puts the Bill just shy of the 218-vote mark required to pass in the House.
Larson told the Huffington Post that he was confident the legislation would pass on the House floor. “It’s a tribute to the grassroots effort that’s gone into this,” he said.
To finance the new law, earnings of US$400,000 or more would be subject to the social security payroll tax. US citizens currently pay social security taxes only on the first US$132,900 they earn, based on a cap that rises with average wage growth.
The legislation would also increase the payroll tax by 1.2% for both employees and employers, phasing in the change over 24 years. The Bill likewise cuts income taxes on Social Security benefits for those receiving them by raising the income threshold at which they would be taxed.
At the same time, lawmakers have also officially reintroduced the Paycheck Fairness Act, a Bill that would protect employees from retaliation for discussing their salary, WSFA reported. The Bill would likewise limit the use of salary history in the hiring process and close loopholes in the existing equal pay laws, the Equal Pay Act of 1963 and the Lilly Ledbetter Fair Pay Act of 2009.
OTHER STORIES THAT MAY INTEREST YOU
US federal workers to receive back pay on Friday
New Jersey agrees $15 minimum wage deal
California's new governor proposes to double income tax credits for low-earners
