Kamala Harris, the Democratic vice president nominee, has laid out her ideas for dealing with issues related to New Social Security Change After Election November 2024 and other government aid programs, aligning closely with the Biden administration’s strategies. Given her past involvement with Social Security, it’s possible that Harris might push for higher benefits. Back in 2019, when she was a U.S. senator, she co-sponsored the Social Security Expansion Act, which aimed to increase minimum payouts and adjust the way cost-of-living changes are calculated.
To tackle potential funding gaps in these programs, Harris might consider raising taxes. The current Biden administration suggested that higher earners should pay more into Social Security. There was also a proposal to slightly increase the Medicare tax rate for those making more than $400,000. This article will give an overview of Harris’s proposed changes to Social Security following the 2024 election. For more details, continue reading.
Quick Overview of Social Security Changes After the 2024 Election
- Title: Kamala Harris’s Proposed Social Security Reforms for 2024
- Country: United States
- Election Year: 2024
- Harris’s Focus on Social Security: Endorses the Social Security Expansion Act, supports closing payroll tax loopholes, advocates for raising the payroll tax, and aims to prevent benefit cuts.
- Category: Finance
What Could Change in Social Security After the 2024 Election?
To deal with possible funding issues, Harris may focus on raising taxes. The Biden administration has already aimed to ensure that high-income people pay their fair share to keep Social Security going. If Harris’s support for the Social Security Expansion Act shapes future policy, the annual income limit on taxable earnings might go up from about $160,000 to $250,000. Additionally, Harris might follow Biden’s lead in reducing out-of-pocket costs for seniors as stated in the Inflation Reduction Act, which allows Medicare to negotiate lower drug prices.
Preparing for Medicare and Social Security Changes in 2024
- Legislative Authority: Congress has the power to change these programs, not the President. The President can influence changes mainly through the budget, but real changes need Congress’s support.
- Future Benefits: Current recipients will likely keep getting their benefits at the current levels.
- Social Security Taxes: Taxes for high-income earners may go up unless another solution is found.
- Retirement Age: There’s a chance the retirement age could increase, possibly along with higher taxes.
- Financial Planning: Don’t count on Social Security to cover more than half of your retirement expenses.
What’s Next for Social Security in 2024?
The Social Security Administration’s report for 2024 states that the Social Security trust fund could run out by November 2035, one year later than earlier estimates. If Congress doesn’t make changes, such as raising the payroll tax or cutting benefits, recipients might only receive 83% of their benefits after that date.
Even though Social Security faces financial challenges, Medicare’s situation has slightly improved. However, Medicare is also expected to face financial trouble by 2036.
Social Security was started by President Franklin D. Roosevelt in 1935 and now supports over 67 million Americans, including families, survivors, people with disabilities, and retirees.
Kamala Harris’s Position on Social Security for 202
Kamala Harris hasn’t fully detailed her specific Social Security policies yet, but she has always stood against any cuts to benefits. On August 14, 2024, she emphasized the importance of Social Security in providing a safety net against poverty for seniors, people with disabilities, and other beneficiaries over its 89-year history.
In 2019, Harris and Senator Bernie Sanders introduced the Social Security Expansion Act. This aimed to raise the income cap for payroll taxes from $132,900 to $250,000 and include investment income in what’s taxed. However, she has supported Biden’s plan to keep tax rates the same for incomes below $400,000, suggesting a focus on higher earners.
Expected Changes to Social Security After the 2024 Election
- No Benefit Reductions: Harris is committed to opposing any efforts to cut Social Security benefits.
- Support for the Social Security Expansion Act: Harris co-sponsored legislation to raise the special minimum benefit for low-income workers.
- Addressing Payroll Tax Loopholes: She wants to close loopholes to make sure the wealthy pay their fair share.
- Increased Payroll Tax: Harris supports Biden’s plan to reinstate the 12.4% payroll tax on incomes over $400,000.
Conclusion
As the 2024 elections approach, Kamala Harris shows a commitment to strengthening and preserving Social Security. Her support for the Social Security Expansion Act and closing payroll tax loopholes highlights her goal of ensuring high earners contribute more. While the Social Security trust fund faces possible depletion by 2035, Harris’s suggested changes could help address these challenges through tax increases and revised benefits. Keep following this topic for more updates and analyses on the proposed changes.
FAQs
What changes is Kamala Harris proposing for Social Security?
Harris supports the Social Security Expansion Act, which aims to increase the minimum benefit for low-income workers and raise the income cap for payroll taxes from $132,900 to $250,000. She also wants to close payroll tax loopholes and raise the payroll tax on earnings over $400,000.
How might Medicare be affected in the coming years?
Despite recent financial improvements, Medicare is expected to face a financial crisis by 2036. This federal program provides healthcare for people aged 65 and over, as well as those with disabilities.
Source: https://whiteoakcreekmarina.com/
