Republicans and Democrats might not always agree on many things. However, these Social Security changes have strong bipartisan support.
Republicans and Democrats might not agree on many things. However, these Social Security changes have strong bipartisan support.
Social Security Major Changes By Joe Biden
Social Security has long referred to as being called “the third rail of American politics.” Meaning charged as to be fatal if touched. However, politicians from both major parties continue to support significant reforms to Social Security, according to The Motley Fool.
In Joe Biden’s bid for a presidential campaign in 2020 that he put out several proposals to reform the well-known federal program. His theories remain controversial but three Social Security adjustments were wanted by President Biden and many Republicans, too.
The Three Social Security Adjustments
1. Increase the payroll tax limit
Biden’s main proposal to keep Social Security from going bankrupt is to increase the salary cap for the payroll tax that pays the program. In 2023, the highest wage that will be subjected to Social Security payroll taxes 2023 is going up to $160,200 from $147,000 in 2022.
According to a PPC study from September, 88% of Democrats favor this proposition, making it quite popular among them. Several Republicans also viewed it as a favorable opinion about it.
2. Raise the minimum benefit
Biden wants to establish a true minimum benefit for Social Security recipients who are retirees. During his presidential campaign, he suggest setting the minimum benefit for anyone who worked at least 30 years to 125% of the poverty line.
In the PPC survey, the idea gained strong bipartisan support, more Democrats favored the idea than Republicans with 71% and 59%, respectively. However, increasing the minimum benefit seems to be politically beneficial.
3. Change how COLAs are calculated
Social Security for this year has been the huge cost-of-living adjustment (COLA) announced for 2023. However, there has been criticism that the methods used to determine COLAs does not accurately represent the expenses that senior pay.
Biden wants to alter the calculation method, he proposes substituting the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) with the Consumer Price Index for the Elderly (CPI-E). The CPI-E is intended to reflect the spending of Americans ages 62 and older. Using this inflation index could benefit Social Security recipients with higher COLAs.
Both Democrats and Republicans are favorable to this change. PPC survey found that 59% of Democrats and 55% of Republicans were in favor of switching from the CPI-W to the CPI-E.
