(DailyDig.com) – A Democrat-sponsored reform bill for Social Security proposed earlier this year would increase Social Security tax rates for certain Americans based on their yearly income. Democratic lawmakers overwhelmingly support the reform, but Republicans are skeptical about the higher tax rates accompanying the act.
The reform addresses issues with the Social Security Fund, which some experts believe will begin failing by 2035. Among the measures featured in the Social Security 2100 Act of 2023 is a reinstated tax rate for Americans earning over $400,000 and a “buffer zone” between $160,200 and $400,000. Under modern policy, any earnings over $160,200 aren’t taxed beyond the usual rate, so people earning more than the cap pay the same amount.
The proposed reform would change Social Security taxes, requiring the initial $160,200 tax and instituting the standard 6.2 percent tax on earnings beyond $400,000. The “buffer zone” is meant to force the top-earning Americans to pay more into the Social Security Fund while allowing upper-class citizens to remain in the standard tax bracket. So far, the bill is only a proposed reform, but legal experts expect the reform to pass in the Senate.
The House of Representatives will likely vote against instituting the reform, given the Republican majority in the Congressional body. Republican lawmakers support cutting funding to programs like Social Security and welfare, given the financial strain such programs impose on the United States government. The White House claims the Republican Party is “unified” in opposing government-funded social programs.
The proposed Social Security reform originated from Representative John Larson earlier this year, and Larson claims the bill is a solution to the imminent failure of Social Security. Larson’s proposed bill, if passed, will be the first widespread reform to Social Security in over 50 years. Larson also claims the program will “expand” Social Security and provide retirement benefits for future Americans currently unaccounted for through modern Social Security policies.
Despite claims from Democrat lawmakers, top Republican officials and GOP presidential candidates claim they will not cut funding to Social Security. Instead, Republicans claim they seek to cut funding to federal agencies like the ATF or the IRS and use those funds to provide retirement benefits to American citizens.
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