$2,400 Extra Annually: Senator Bernie Sanders Pushes for Social Security Expansion Act – Will it Pass?

Senator Bernie Sanders has reintroduced the Social Security Expansion Act (SSEA), which aims to offer an extra $200 per month to those currently receiving Social Security or those turning 62 in 2023. This proposal could provide millions of Americans with an extra $2,400 annually. The SSEA also proposes a solution to increase funding for Social Security through 2096.

Social Security faces a possible depletion of funds by 2035, leading to a 25% reduction in benefits. This could mean that when the program’s fund is depleted, recipients will only get 80% of their benefit amounts.

Sanders plans to finance the SSEA by taxing high earners while not raising taxes for households earning $250,000 or less, as indicated in the article released by the Senator’s official website on February 13, 2023. The current income cap is $147,000, which means that any earnings above that amount are not subject to Social Security taxation. Any income beyond $250,000 would be taxed for Social Security purposes under the proposed proposal.

The Initial proposal was opposed by Republicans who did not think it would pass, and they argued that cuts to Social Security and Medicare should be excluded. However, Sanders received support from other Democrats.

This year, based on a report by The US Sun on February 17, 2023, Social Security’s maximum monthly payment is $4,555, while the average monthly benefit is $1,827. Retirees received an average $140 boost to their benefits due to an 8.7% annual cost-of-living adjustment (COLA), the largest rise in over 40 years. Despite the boost, many low-earners are still struggling to make ends meet.