Come 2023, pensioners in the United States might be in for a treat. A new proposal would raise Social Security payouts by $200 per month, or $2,400 annually. The purchasing power of retirees would increase as a result. Retirees would receive a lot more money for the following year with this rise and the Social Security Administration’s COLA, but it does not imply they would have enough money to keep up with inflation.
But the bill needs to be approved for this to go properly. The idea has already been sent to Congress, and everything is waiting for it to be implemented. The elderly could more easily weather inflation thanks to this new provision. It is currently impossible to predict whether Social Security will actually see this increase.
The new bill to increase Social Security
This new legislation was introduced on June 9 by Senator Bernie Sanders and Democratic Congressman Peter DeFazio. All seniors who become 62 or older in 2023 will get an additional $200 monthly contribution as a result of this bill. If we account for inflation and the rise in general prices, something really essential.
Additionally, the new DeFazio and Sanders bill suggests raising the trust funds. By 2035, the Social Security Administration projects that the trust funds used to provide payments will be depleted. These new initiatives will ensure that Social Security has no more issues—at least for a very long time.
What does the new bill consist of?
This new Bill comprises of a pretty straightforward and simple task. These two congressmen have suggested that the highest wages be subject to taxation. Social Security will be able to collect funds from those who earn the highest wages in the country thanks to this straightforward procedure. A small percentage of the population would be negatively impacted, while a huge majority would have positive effects as a result.
Currently, those who earn more than $147,000 a year are not subject to additional taxes. Incomes over $250,000 would be required to pay under this new Bill in order to balance the economy of the nation. We still don’t know whether or not this law will ultimately pass. But what is certain is that it marks the start of a transition to a setting where Social Security beneficiaries will have more opportunities.