New Social Security Change After Election: Kamala Harris, the Democratic vice presidential nominee, has outlined her approach to tackling issues related to entitlement programs, echoing the strategies already proposed by the Biden administration. Given her history with Social Security, Harris might advocate for increased benefits. During her tenure as a U.S. senator in 2019, she co-sponsored the Social Security Expansion Act, a measure aimed at boosting minimum payouts and revising the cost-of-living adjustment formula.
To address potential shortfalls in entitlement programs, Harris’s plan likely involves tax hikes. The Biden administration’s budget proposed that high-income earners contribute more to Social Security, ensuring they pay their fair share. Additionally, it suggested a modest increase in the Medicare tax rate for incomes exceeding $400,000. This article is based on the latest updates regarding Kamala Harris’s announcement on Social Security reforms following the 2024 election. For a detailed overview of these proposed changes, please read the full article.
New Social Security Change After Election November 2024: Overview
| Title | Kamala Harris’s Proposed Social Security Reforms for 2024 |
|---|---|
| Country | United States |
| Election Year | 2024 |
| Kamala Harris’s Stance on Social Security | – Endorsement of the Social Security Expansion Act – Advocacy for addressing payroll tax loopholes – Support for increasing the payroll tax – Potential reduction in benefits |
| Category | Finance |
Upcoming Social Security Adjustments Post-2024 Election
In response to anticipated shortfalls in entitlement programs, increasing taxes is likely to be a key component of Kamala Harris’s strategy. The current Biden administration’s budget proposal has sought to ensure that high-income individuals pay their fair share of taxes to sustain Social Security. Under a potential Harris administration, there may be more rigorous enforcement of payroll tax collections, especially if her support for the Social Security Expansion Act influences policy. This Act proposes raising the annual income limit on taxable earnings from approximately $160,000 to $250,000. Additionally, if the Biden administration continues its current approach to prescription benefits, Harris would aim to lower out-of-pocket costs as outlined in the Inflation Reduction Act. This legislation empowers Medicare to negotiate reduced prices for costly medications, with the goal of passing savings on to seniors. For more details, read Kamala Harris’s comments on Social Security.
How to Prepare for Medicare & Social Security Changes in 2024
- Legislative Authority:
- Congress has the power to amend entitlement program laws, not the President.
- The President can influence legislation primarily through the budgetary process, but significant changes require Congressional support.
- Future Benefits:
- Current beneficiaries are expected to continue receiving their existing benefit amounts without reductions.
- Social Security Taxes:
- Social Security taxes for higher-income individuals may rise in the future unless a strong alternative emerges.
- Retirement Age:
- It is anticipated that the retirement age may eventually be increased, potentially alongside tax hikes.
- Financial Planning:
- Regardless of potential changes, do not rely on Social Security to cover more than half of your retirement expenses.
What Lies Ahead for Social Security in 2024
According to the Social Security Administration’s 2024 report, the Social Security trust fund is anticipated to be exhausted by November 2035, which is one year later than previous estimates. If Congress does not implement changes, such as increasing the Social Security payroll tax or reducing benefits, beneficiaries may only receive 83% of their full benefits after that date.
Despite Social Security’s looming financial challenges, Medicare’s fiscal situation has shown some improvement over the past year. However, Medicare, which provides healthcare for those aged 65 and over, as well as individuals with disabilities, is expected to face a financial crisis by 2036.
Founded by President Franklin D. Roosevelt in 1935, Social Security supports more than 67 million Americans, including families, survivors of deceased workers, disabled individuals, and retirees.
Also Read- Canada Grocery Rebate 2024: Next Payment Date, Who is Eligible, Application Procedure
Kamala Harris’s Position on Social Security for 2024
While Vice President Kamala Harris has yet to publicly outline her specific Social Security policy proposals, she has consistently opposed any measures that would reduce or eliminate benefits. On August 14, 2024, Harris highlighted the critical role Social Security has played for millions of seniors, disabled individuals, and other beneficiaries over its 89-year history, providing a vital safety net against poverty.
In February 2019, Harris, along with Senator Bernie Sanders, introduced the Social Security Expansion Act. This proposal aimed to raise the income cap for Social Security payroll taxes from $132,900 to $250,000 and to include investment income in the taxable amount. However, Harris has implicitly rejected part of this plan by supporting President Biden’s commitment to maintain tax rates on incomes under $400,000.
Upcoming Changes to Social Security Post-Election 2024
- No Reduction in Benefits: Harris has committed to opposing any proposals that would cut or eliminate Social Security benefits.
- Support for the Social Security Expansion Act: Harris is a co-sponsor of legislation designed to increase and adjust the special minimum benefit for low-income workers throughout their lifetimes.
- Addressing Payroll Tax Loopholes: Harris supports closing loopholes in the payroll tax system to ensure that the wealthy contribute their fair share.
- Endorsement of Increased Payroll Tax: Harris backs President Biden’s plan to reinstate the 12.4% payroll tax on earnings exceeding $400,000.
Conclusion
As the 2024 elections approach, Kamala Harris’s stance on Social Security reflects a commitment to preserving and enhancing the program rather than diminishing it. Her support for the Social Security Expansion Act and her focus on addressing payroll tax loopholes highlight her dedication to ensuring that high-income earners contribute more to support the system. While the Social Security trust fund faces significant challenges, with projections indicating a depletion by November 2035, Harris’s proposed reforms aim to address these issues through increased taxes and improved benefit structures. For comprehensive details on these reforms and their potential impact, continue following updates and analyses on this crucial topic.
FAQs
What are Kamala Harris’s proposed changes to Social Security?
Kamala Harris supports the Social Security Expansion Act, which aims to increase the minimum benefit for low-income workers and adjust the income cap for payroll taxes from $132,900 to $250,000. She also advocates for closing payroll tax loopholes and increasing the payroll tax on earnings over $400,000.
How might Medicare be affected in the coming years?
Medicare is expected to face a financial crisis by 2036, despite recent improvements in its fiscal situation. This federal program provides healthcare for individuals aged 65 and over and those with disabilities.