Potentially Exciting News for our Seniors

House Ways and Means Social Security Subcommittee Chairman John Larson, D-Conn., plans to introduce Wednesday a new bill called Social Security 2100: A Sacred Trust. Importantly, the bill will include a change in the inflation rate index from the CPI-W to the CPI-E. As a reminder to our regular readers, I’ve been encouraging our legislators to make this change for years (7 blog posts, including the most recent on 6/14/21). This inflation rate has a greater weight assigned to healthcare related spending, which continues to be one of the most critical expenditures for our Senior population. In addition, the bill would tax incomes >$400,000. The Social Security payroll tax is not presently applied to wages greater than $142,800. The new payroll tax will be applied to those wages up to the current maximum and for wages earned over $400,000, which presently impacts about 0.4% of our workforce. 2021 could be very exciting for our SS recipients given the nearly historic COLA announced recently and a possible shift in the inflation index.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s