Social Security 2100 is a bill before Congress which is scheduled for a hearing in July 2019. Among other things, the bill proposes to make the Social Security Trust Fund more solvent as well as increase the income and lifestyle of retirees and disabled individuals. The bill includes a benefit increase for current and new beneficiaries of about 2% and a protection against inflation by improving the annual cost of living (COLA adjustment). Other benefits to the bill include protection for low income workers by setting a new benefit minimum at 25% of the poverty level, lower taxes for beneficiaries.
The bill seeks to keep the trust fund solvent by increasing revenue, primarily by removing the cap on income on which FICA taxes are paid. Presently FICA taxes are only paid on wages over $132,900 per year, the bill would increase the FICA tax to wages up to $400,000. Also, the bill will make a very gradual increase in the amount FICA contribution from workers. The increase is designed to bring workers and employers up to a 7.4% rather than the current 6.2% by 2043. The rate increase would cost an average worker about 50 cents per week.
