This Proposal on Capitol Hill Could Impact Your Social Security (And Your Paycheck)

Originally published by Yahoo Finance–

Big changes to Social Security could be coming.

A new proposal from U.S. Rep. John Larson (D-Conn.) calls for a benefit bump for current and new Social Security beneficiaries, an overhaul to how the annual cost-of-living adjustment (COLA) is formulated and increased payroll tax collections on the wealthiest Americans.

The legislation, dubbed “Social Security 2100: A Sacred Trust” was expected to be introduced Wednesday on Capitol Hill, but has since been delayed, according to Larson’s communications director, Mary Yatrousis.

Social Security benefits have been adjusted each year since 1975 to keep pace with inflation. Next year’s 5.9% increase will be the largest in four decades as inflation has pushed the price of goods and services up over the last year. Tweaking how the annual COLA is calculated is among the most consequential changes in Larson’s proposal.

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