An Urban Institute analysis says that despite the imposition of taxes on high-income earners, Mr Biden’s proposal would only buy an additional five-year solution to the program, which would soften the benefit cuts if no further changes are made.
However, Biden’s policy advisers said the proposal was an initial attempt. “The Vice President’s financial proposal shows all Social Security recipients how he can protect and maximize benefits while making lower payments for the long – term solution,” said Jean Schperling, Mr Biden’s external adviser and former national economic adviser. Presidents Bill Clinton and Barack Obama.
Every American has some risk, or someone close to them: about 178 million workers contribute to the program, and 45.8 million retirees this year will receive approximately $ 70 billion in benefits – an average of $ 1,500 per month, according to the Social Security Administration.
Under current law, retirement benefits can only come out of the trust fund, which will disappear by 2034. Calculated by the Social Security Administration It does not take into account pandemic. At that time, the taxes collected would be enough to pay only 76 percent of the benefits. (A Congress Budget Office A report from September predicts that trust funds will run out in 2031 Bilateral Policy Center, The project could happen soon.)
The cost of inactivity is serious, because as bankruptcy approaches, the necessary changes will be more painful – tax increases will have to be higher, and more cuts. “The longer we wait for the problem to be solved, the fewer people can play a role in the solution.”
About half of the population aged 65 and over lives in households that receive at least half of their income from social security, according to a 2017 study. Social Security Bulletin. At least 25 percent of elderly families and 90 percent of their income depend on social security.
Joyce Welch, 73, retired from Sacramento, relies solely on social security. The single mother, who raised two sons, worked full time for most of her life. Her health began to decline about 15 years ago due to an undiagnosed autoimmune disease, and within a few years, she had to retire as a site supervisor and family consultant at a care support center in Los Angeles.