Nation of Change - A new report determined that Sen. Bernie Sanders’ legislation to strengthen Social Security would extend the life of the program by an additional 40 years, from 2034 to 2074. Instead of allowing the wealthy to continue manipulating tax laws, Sanders intends to remove the tax cap for the rich while fighting to keep Social Security alive.
Last year, Sanders introduced the Social Security Expansion Act to extend the solvency of the program and ensure that the wealthy begin paying their fair share. Under current law, the amount of income subject to the payroll tax is capped at $118,500. That means millionaires and billionaires pay the same amount in payroll taxes as people making $118,500 a year. Sanders’ bill would subject all income over $250,000 to the payroll tax. According to the Center for Economic Policy, only the top 1.5 percent of wage earners would be impacted.
The Social Security’s Office of the Chief Actuary found that Sanders’ legislation would extend the solvency of the program from the current estimate of 2034 to 2074. The increase in Social Security benefits would provide an additional $1,300 a year to seniors with less than $16,000 in income. Sanders’ bill would also increase the annual cost-of-living adjustment for Social Security recipients while fighting to significantly reduce the senior poverty rate.