KEY TAKEAWAY BOX
- Tax Higher Incomes: Income above $400,000 to be taxed for Social Security.
- Change the COLA Formula: Switch to Consumer Price Index for the Elderly (CPI-E).
- Raise the PIA: Increase benefits for ages 78 to 82.
- Increase the Special Minimum Benefit: Raise to 125% of the federal poverty level.
- Increase SSA Funding: 9% boost to improve services.
Introduction
Hey Hustlers! Big changes are on the horizon for Social Security if Kamala Harris wins the upcoming elections. Our brand, HustleHub, is here to keep you informed about how these potential changes might impact you. Let’s dive into the details!
Tax Higher Incomes
The Biden-Harris administration proposes taxing earned income above $400,000. Currently, wages between $168,600 and $400,000 remain untaxed, but this change aims to address the funding shortfall in the Old Age and Survivors Insurance (OASI) Trust Fund.
| Income Bracket | Current Tax Status | Proposed Change |
|---|---|---|
| $0 – $168,600 | Taxed | Taxed |
| $168,600 – $400,000 | Untaxed | Untaxed |
| $400,000+ | Untaxed | Taxed |
Change the COLA Formula
The proposed change to the Cost-of-Living Adjustment (COLA) calculation involves using the Consumer Price Index for the Elderly (CPI-E) instead of the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This shift aims to better reflect the expenses faced by seniors, particularly in healthcare.
Raise the PIA
Raising the Primary Insurance Amount (PIA) would help Americans aged 78 to 82 manage increasing costs in later life. This adjustment would provide greater financial security for older retirees.
Increase the Special Minimum Social Security Benefit for Lifetime Low-Wage Workers
The administration plans to increase the special minimum benefit to 125% of the federal poverty level, ensuring that lifetime low-wage workers receive more substantial support.
| Years of Coverage | Current Monthly Benefit | Proposed Monthly Benefit |
|---|---|---|
| 11 | $50.90 | Adjusted to 125% of poverty level |
| 30 | $1,066.50 | Adjusted to 125% of poverty level |
Increase SSA Funding
A 9% increase in funding for the Social Security Administration is proposed to improve customer service at field offices and enhance state disability determination services, teleservice centers, and services for individuals with disabilities and their families.
FAQs
What is the primary reason for taxing higher incomes?
To address the funding shortfall in the OASI Trust Fund.
How will the change in COLA formula benefit seniors?
It will better reflect healthcare expenses, ensuring more accurate cost-of-living adjustments.
What is the Primary Insurance Amount (PIA)?
It determines the amount you receive in Social Security benefits based on your average earnings.
Why increase the special minimum benefit?
To provide more substantial support to lifetime low-wage workers, ensuring they stay above the poverty line.
How will the increased SSA funding be utilized?
To improve customer service and enhance various services for retirees and individuals with disabilities.
What is CPI-E?
The Consumer Price Index for the Elderly, which better reflects the expenses of seniors, particularly in healthcare.
When will these changes be implemented?
If Harris wins the election, these changes will be proposed and potentially implemented in her term.
For more detailed information, visit our website at HustleHub.
Conclusion
Hustlers, stay informed and prepared for these potential changes to Social Security. With the right information and resources, you can navigate these updates smoothly and ensure your financial future is secure. Keep hustling, and remember, HustleHub is here to help you every step of the way!
Official Sources
- Social Security Administration (SSA)
- Consumer Price Index for the Elderly (CPI-E)
- Old Age and Survivors Insurance (OASI) Trust Fund