HR 82: Social Security Fairness Act
Overview
HR 82 is a bill introduced to the United States House of Representatives on January 9, 2023, by Representative John Larson (D-CT). The bill’s primary purpose is to address concerns about the long-term solvency of the Social Security trust fund and ensure its continued ability to provide benefits to current and future retirees.
Key Provisions
The key provisions of HR 82 include:
- Lifting the Cap on Social Security Payroll Tax: The bill eliminates the current payroll tax cap that applies to individuals with income above a certain threshold ($147,000 in 2023). This would subject all earned income to the Social Security payroll tax.
- Increasing the Full Retirement Age: The bill gradually increases the full retirement age from the current 67 to 68 for individuals born after 1960.
- Expanding Social Security Benefits: The bill increases the minimum Social Security benefit and provides additional benefits for low-income beneficiaries.
- Cost-of-Living Adjustments: The bill adjusts Social Security cost-of-living adjustments (COLAs) to better reflect inflation.
Rationale and Support
Supporters of HR 82 argue that it is necessary to address the projected long-term shortfall in the Social Security trust fund. The Social Security Administration (SSA) estimates that the fund will be exhausted by 2035, leaving it unable to pay full benefits to retirees. The bill’s provisions are designed to increase revenue and reduce expenditures, ensuring the program’s solvency for future generations.
Additionally, supporters argue that the bill provides a more equitable distribution of Social Security benefits. The lifting of the payroll tax cap and the expansion of benefits for low-income beneficiaries would address concerns about the disproportionate impact of Social Security payroll taxes on higher earners and the financial struggles faced by many retirees in lower income brackets.
Opposition and Concerns
Opponents of HR 82 raise several concerns about its provisions:
- Increased Payroll Taxes: Eliminating the payroll tax cap would increase the tax burden on high-income earners.
- Later Retirement Age: Raising the full retirement age could delay retirement for many individuals and impact their financial plans.
- Erosion of Benefits: While the bill increases benefits for some low-income beneficiaries, critics argue that it does not adequately address the overall decline in the value of Social Security benefits due to inflation.
- Alternative Solutions: Some opponents believe that there are alternative solutions to the Social Security funding crisis, such as reducing waste and inefficiency in the program or increasing the retirement age for wealthier individuals.
Current Status
HR 82 has been referred to the House Committee on Ways and Means for consideration. It is still in the early stages of the legislative process, and its future prospects are uncertain. The bill faces significant opposition from some lawmakers, particularly Republicans who generally support reducing taxes and government spending. However, the bill has also gained support from some Democratic lawmakers and advocates who believe it is necessary to protect Social Security for future generations.
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