Democrats Push Plan to Increase Social Security Benefits and Solvency

The Social Security 2100 Act introduced by Rep. John B. Larson (D-Conn.) is gaining momentum on Capitol Hill. The bill represents a shift in mindset after decades dominated by concern that aging baby boomers would bankrupt the government as they begin drawing benefits from Social Security and other entitlement programs, reports the New York Times . The proposal would provide an across-the-board benefit hike equivalent to about 2 percent of the average Social Security benefit, as well as raise the annual cost-of-living adjustment to reflect the fact that older Americans tend to use more services such as healthcare. The measure also would increase the minimum benefit to ensure that employees with many years of low earnings do not retire into poverty. The Social Security 2100 Act seeks to slash federal income taxes on Social Security benefits for about 12 million middle-income people while raising taxes elsewhere. The payroll tax rate would climb to 14.8 percent over the next 24 years from 12.4 percent, and the payroll tax would be imposed on earnings in excess of $400,000 annually. "Our bill, supported by more than 200 members of the House, would enhance and expand the nation's most successful insurance program, which touches the lives of every American," says Larson.