A new bill would put more money in the pockets of Social Security beneficiaries.
U.S. Rep. Peter DeFazio, D-Oregon, and Sen. Bernie Sanders, I-Vermont, introduced the Social Security Expansion Act on June 9. The bill comes after the Social Security Administration announced the fund that pays benefits for millions of Americans could encounter shortfalls as soon as 2035 if nothing is done to undergird the program.
Under the terms of the bill, Social Security recipients would receive a monthly check of $200 – an annual increase of $2,400. The average monthly Social Security check is about $1,658, so the change would represent a 12% boost, CBS News reported.
READ MORE:
Social Security benefits could increase by 8% next year
Social Security recipients could see biggest boost in 40 years
It stinks: Gallup poll shows most pessimistic on US economy
The bill would boost benefits for the lowest income earners who currently receive about $900 a month through the Special Minimum Benefit program. Under the legislation, it would be adjusted about 125% of the federal poverty line, or about $1,400 a month.
In return, the bill would increase payroll taxes for some earners. Currently, earnings above $147,000 aren’t subject to Social Security taxes. The bill would change that to all income above $250,000. More than 93% of households would not see their taxes go up by a penny under the new guidelines, the lawmakers said.
