Democratic Sen. Joe Manchin proposes to revise Social Security benefits, notably raising the cap on payroll taxes to make the highest earners contribute more to the program’s reserves.
Manchin Proposes To Provide More Money To Social Security In Response to Debt Ceiling – Will Biden Allow It? (PHOTO: MSN)
Manchin Wants To Provide More Money To Social Security
Democratic Sen. Joe Manchin in a recent appearance on the “State of the Union” program, believes that providing more money for the program in this manner will ensure beneficiaries continue to get payments. This new revenue would also ease government overspending on this major line item, hence, at least partially alleviating the debt ceiling crisis.
Manchin proposes raising the FICA income cap. According to Social Security Administration, every American worker and their employer offers 6.2% of their pay towards the program, up to $160,200 in 2023, while self-employed workers pay a more substantial 12.4% of their wages. However, if you’re a millionaire, you will have met the $160,200 limit around February of every year. Moreover, regarding to the combined Federal Insurance Contribution Act (FICA), which blends Social Security payroll taxes and Medicare payroll taxes, regular employees pay 7.65% and self-employed persons pay 15.3%.
Will President Biden Allow It?
Manchin’s plan seems to dovetail with Biden’s pledge to ensure the health and longevity of Social Security, which is poised to become exhausted by 2035 unless something is done to provide more funding. “The Biden Plan will place the program on a path to long-term solvency by requesting Americans, especially those with the highest earnings to pay the same taxes on those earnings that middle-class families settle,” as per a statement on the president’s official website read, outlining his four-part Older Americans program to conserve Social Security.
CNBC indicated the GOP has proposed increasing the retirement age for when benefits can be received, adjusting how cost-of-living adjustments are calculated, and “changing rules for ancillary benefits.” Lastly, such alterations would be unlikely to receive Biden’s support.
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