Kamala Harris, the vice presidential contender of the Democratic Party in the US, has declared that she will address entitlement program issues using the same strategy that the Biden administration has already recommended. Harris’s political background concerning Social Security may lead her to support larger payouts. To better address modern economic requirements, Harris co-sponsored the Social Security Expansion Act in 2019 while serving as a US senator. The bill would have increased the minimum payout and changed the plan’s cost-of-living adjustment computation mechanism. To pay for the anticipated deficits in entitlement programs, Harris’s plan most certainly calls for tax increases. The budget proposed by the Biden administration aimed to ask ‘the highest-income Americans’ to contribute to Social Security’s preservation by making ‘their fair share’ of tax payments. Modestly raising the Medicare tax rate on incomes above $400,000 was another proposal included in the budget. This article is framed based on the facts collected related to Kamala Harris’s Annoucement on New Social Security Change After Election 2024. To have a brief understanding of the changes, read the complete article.
New Social Security Change After Election 2024
Raising taxes would probably be part of Harris’s strategy to make up for the anticipated deficits in entitlement programs. To preserve Social Security, the Biden administration’s budget asked the highest-income Americans to contribute their fair share of taxes. A Harris administration might potentially result in more aggressive payroll tax collection if Harris’s support for the Social Security Expansion Act is in any way. The Social Security Expansion Act aims to raise the annual maximum on taxable income from the present structure, which is set at around $160,000 to $250,000. If the Biden administration were to stick to its current prescription benefit strategy, Harris would be trying to reduce out-of-pocket expenses as stipulated under the Inflation Reduction Act. To pass on the savings to seniors, the law grants Medicare the authority to bargain for lower costs for expensive medications. Read further to know Kamala Harris’s Remarks on Social Security.
How To Prepare For Changes To Medicare & Social Security 2024
- Citizens should keep in mind that Congress, not the President, has the authority to amend the laws governing entitlement programs, regardless of the results of the election.
- Presidents have the power to shape the laws that are developed, mostly through the budgetary process. However, to effect lasting change, they need the backing of Congress.
- Certain outcomes are safe to assume regardless of the election’s outcome, for people who are wondering how they might make plans for the future.
- Seniors should anticipate continuing to receive their current benefit amount because benefits will not be modified for anyone who is currently receiving them.
- There is a good chance that Social Security taxes will eventually rise for individuals with higher incomes unless a strong alternative emerges, which it hasn’t yet.
- It is believed that at some point in the future, the retirement age will undoubtedly be raised, even in the event of a tax increase.
- You shouldn’t rely on Social Security payments to cover more than half of your retirement expenses, regardless of any changes that could occur following the election.
Kamala Harris Social Security Changes 2024
| Title | Kamala Harris Social Security Changes 2024 |
| Country | The United States |
| Election Year | 2024 |
| Kamala Harris’s On Social Security | Support for the Social Security Expansion Act Support for closing payroll tax loopholes Support for raising the payroll tax Reduction of Benefits |
| Category | Finance |
What Is At Stakes For Social Security 2024
- It is projected that the Social Security trust fund would deplete in November 2035, one year later than projected, as per the SSA’s 2024 report.
- After that, unless Congress makes adjustments before then, maybe by raising the Social Security payroll tax and reducing benefits, the program will continue, but seniors will probably only receive 83% of their full benefits.
- Medicare’s finances have somewhat improved during the past year, even though Social Security is on the verge of going bankrupt.
- But in 2036, there will likely be a financial crisis for Medicare, the federal healthcare program for the elderly (65 and over) as well as for those receiving disability benefits.
- More than 67 million Americans get a monthly income from Social Security, which was founded by President Franklin in 1935.
- These recipients include families, survivors of deceased workers, disabled workers, and retired Americans.
Kamala Harris’s Remarks On Social Security 2024
- Although Harris has not yet made public her formal Social Security policy recommendations, it is evident that she is adamantly opposed to any idea that would lower or eliminate Social Security benefits.
- On 14 August 2024, Harris claimed that for millions of seniors, disabled persons, and other beneficiaries, Social Security has meant the difference between poverty and peace of mind for 89 years.
- Back in February 2019, Senator Harris and Democratic candidate Bernie Sanders collaborated on the Social Security Expansion Act. According to the measure, the $132,900 annual income cap would be lifted for Social Security payroll tax, bringing it up to $250,000.
- The proposed measure additionally included investment income under the Social Security tax.
- But by upholding Biden’s pledge to keep taxes on incomes under $400,000, Harris has subtly rejected one aspect of the package.
New Social Security Change After US President Election 2-24
- Reduction of Benefits: Harris has declared that she will not back any plans that would lower or eliminate Social Security benefits.
- Support for the Social Security Expansion Act: Harris is a co-sponsor of the legislation that would raise and index the special minimum benefit for low-earning workers for the rest of their lives.
- Support for closing payroll tax loopholes: Harris has stated that he is in favour of closing payroll tax loopholes, which would compel the wealthy to contribute fairly.
- Support for raising the payroll tax: Harris has endorsed President Biden’s proposal to bring back the 12.4% payroll tax on earnings over $400,000.
