A bill that aims to bolster Social Security while implementing an across-the-board benefit increase for current and new beneficiaries was introduced in the House Tuesday.
Rep. John B. Larson, D-Conn., chairman of the Ways and Means Subcommittee on Social Security, reintroduced the Social Security 2100 Act.
The bill, a version of which was last introduced and debated in 2019, would increase payments by about 2% for current and new beneficiaries; establish a new minimum benefit at 25% above the poverty line in order to protect low-income workers; and end the current five-month waiting period to receive disability benefits. It would also change the way cost-of-living adjustments are calculated by adopting the consumer price index for the elderly formula, a Bureau of Labor Statistics research price index for Americans 62 years and older.
To pay for the improvements, the bill would apply the payroll tax to wages above $400,000, which would affect the top 0.4% of wage earners, according to a fact sheet from Mr. Larson's office. Presently, payroll taxes are not collected on wages over $142,800, the fact sheet noted.