Updated on January 17, 2024
If you’re seeking insights and the latest updates on the Social Security 2100 Act and the approved stimulus amounts for 2024, we suggest giving this post a read.
Social Security 2100 Act
The Social Security 2100 Act of 2024 proposes a comprehensive overhaul to address the program’s financial challenges. Social Security is currently at a critical juncture, and Congressman John Larson (D-CT) initially introduced the Social Security 2100 Act in 2019.
The projections from the Social Security Board of Trustees indicate that the program will only cover 75% of planned payouts by 2035 if no action is taken. For more in-depth information on the SS 2100 Act, it’s recommended to read this article in its entirety.
Understanding Social Security 2100 Act
The Social Security 2100 Act recognizes social security payments as a vital lifeline for residents of all ages and communities. It assures comprehensive improvements aimed at ensuring the sustainability of the program until at least the year 2100.
This bill proposes several enhancements, such as a 2% increase in payments for all Social Security recipients and additional assistance for the elderly to uphold their standard of living.
Social Security 2100 Act Overview
| Post Heading | Social Security 2100 Act |
| Country | USA |
| Act Enactment Year | 2019 |
| Introduced By | John Larson |
Status Update: Social Security 2100 Act
Under the current law, wages subject to payroll taxes for Social Security are capped at $160,200 in 2023. Congressman Larson’s proposed legislation introduces a “donut hole” method, where salaries between $160,200 and $400,000 (classified as upper class and constituting 20% of the workforce) remain tax-free. This approach aims to focus on affluent incomes while protecting lower-income brackets from additional tax burdens. However, earnings exceeding $400,000 would once again become subject to taxation.
In July 2023, Congressman Larson introduced the third iteration of the SS 2100 Act. According to the analysis by Social Security actuaries, the Act is projected to address approximately 90% of the program’s 75-year shortfall, assuming only minor improvements for the years 2025–2034. This suggested legislation could be viewed as a substantial “down payment” towards resolving the 75-year issue.
Approved Stimulus Amounts in 2024 under the 2100 Act
After 52 years, it has been declared that all Social Security pensioners will receive a 2% increase in payments. Title XVI of the Act establishes a maximum monthly Federal Supplemental Security Income (SSI) payment level of $472 for an essential person, $1,415 for an entitled individual with a spouse, and $943 for an eligible individual in 2024.
In 2024, under section VIII of the Act, certain World War II (WWII) veterans will receive a special compensation payment of $707.25. Title XVI of the Act will exempt $2,290 each month, up to a maximum of $9,230 for the entire year, from the student’s earned income.
Starting in 2024, the maximum monthly fee for services as a representative payee will be $54. In cases where a beneficiary is deemed incapacitated, struggling with alcohol or drug addiction, and incapable of managing their benefits, the fee will be $100.
Concluding Words
A funding gap is anticipated for Social Security, with dedicated receipts projected to fall short of expenditures by 3.42 percent of taxable payroll or 1.19 percent of GDP over the program’s 75-year projection horizon.
There is an estimate that by 2035, the combined reserves of the Social Security retirement and disability trust funds will be depleted. At that point, the yearly tax revenue for Social Security would only be sufficient to cover approximately 80% of the expected payouts.
Under the proposed Social Security 2100 law, Social Security payouts would increase in several aspects, but only for a five-year period, from 2026 to 2027. The focus of several suggested benefit upgrades, such as a new minimum benefit and earnings credits for caregiving, would be beneficiaries who were underpaid for the majority of their careers.
If the provisions of Larson’s SS 2100 Act are implemented, the projected depletion date for the combined OASDI Trust Fund assets would be extended from 2034 to 2066.
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