Social Safety payments 2022: Enormous $2,400 maximize could be on the way for recipients

Ryan King

August 08, 10:27 AM August 08, 10:27 AM

Several users of Congress are hoping to move the Social Protection Enlargement Act, which would develop rewards by $200 a month for any receiver as senior citizens grapple with roaring inflation.

Introduced on June 9 by Rep. Peter DeFazio (D-OR) and Sen. Bernie Sanders (I-VT), the bill would volume to a roughly 12% improve for the usual senior, amounting to an average $1,658 check out and a $2,400 once-a-year maximize.

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“At a time when 50 % of older Us residents have no retirement price savings and millions of senior citizens are residing in poverty, our occupation is not to lower Social Security,” Sanders claimed. “Our occupation ought to be to increase Social Safety so that every single senior citizen in The united states can retire with the dignity they are worthy of and each and every particular person with a incapacity can live with the security they need to have."

This yr, Social Safety obtained a whopping 5.9% charge-of-living adjustment centered on inflation facts from 2021, but inflation has soared even better in 2022, with purchaser selling prices raising 9.1% year about 12 months in June.

To fund the expansion, the Social Protection Growth Act would lift the earnings cap for payroll taxes. This suggests that all profits previously mentioned $250,000 would be topic to the tax, in contrast to the recent arrangement in which every dollar gained about $147,000 is not matter to the tax.

Supporters of the monthly bill, like Sanders and DeFazio, argue that 93% of homes would not knowledge a tax maximize to assist the growth.

On top of that, the invoice would index the price tag-of-residing adjustment for the consumer price tag index for the aged alternatively than primarily based on the client rate index for urban wage earners and clerical personnel. That modify is meant to account for the truth that seniors expend a sizeable chunk of their incomes on products and solutions these kinds of as prescription medicine and healthcare.

The monthly bill has amassed approximately two dozen primary co-sponsors in the Property, all of whom are Democrats. In buy to develop into legislation, it would need to have to clear the Senate, which is household to a razor-thin Democratic majority, and the filibuster, which needs 60 votes for most laws to go.