10,000 Baby Boomers are becoming eligible for Social Security every day. This is a bedrock program and the nation’s most successful insurance program. For two-thirds of the current beneficiaries, Social Security makes up the majority of their income.
John has a plan that will enhance, expand, and extend the program into the next century, AND it is fully paid for.
- Gives seniors a tax break.
- It raises the threshold for taxation on benefits to $50,000 for individuals and $100,000 for joint filers. The current thresholds are $25,000 for individuals and $32,000 for joint filers.
- It increases current beneficiaries benefits by two percent, across the board.
- It ensures millionaires and billionaires pay their fair share!
- Right now there is a cap at $128,000, meaning someone like Bill Gates stops contributing to Social Security pretty early on in the year. John’s plan raises the cap to $400,000.
- It adjusts the Cost-of-Living-Adjustment to rate that is based on seniors’ needs!
If John’s plan was enacted today, someone who was retiring’s benefits would be 5 percent greater at 85 years old than they are with the current system.
How is it paid for?
The amount employees and employers contribute to Social Security hasn’t really been changed since 1983. Think of it like an insurance premium. Who else’s insurance rate hasn’t increased since then? Nobody’s! John’s plan phases in a rate increase over 25 years, and then indexes it for years out so it will be self-adjusted for inflation.
What does this mean for you? Well, the average worker making $50,000 a year would only pay 50 cents a week! Think of it this way: do you ever stop for a Starbucks latte? Well, that $4.50 is equivalent to 9 weeks of Social Security payments for the average worker!