$200 Raise per month or $2,400 Annual Boost to Social Security Benefits – What it Means for You

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$200 Raise per month or $2,400 Annual Boost to Social Security Benefits - What it Means for You
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The $200 per month raise or $2400 annual boost to Social Security benefits and what it means for you. I have all the details and what you need to know right here on the topic, All right now, this is a relatively new piece of legislation that was recently introduced by Bernie Sanders, Elizabeth Warren, and a handful of other Democratic senators. So in this topic, I do want to discuss all the details of this piece of legislation and, of course, what it means for you going forward. There are a lot of details about this, so let’s get into it right away and discuss everything you need to know.

I am your one and only daily advocate, and I’m very much dedicated to you and the community to continue doing all the research each and every day, breaking it all down into these short topics, which I deliver a couple of times each and every day so you can stay updated with what is actually going on right now during this very busy time, especially as it pertains to money benefits, raises, to benefits reform, to these very important programs, as well as checks, programs, and anything else that continues to happen right here, right now, as I truly want to help you out in any way that I can and give you all the latest updates as well as point out anything else that’s going on right now that you can take advantage of during this very busy time. And let’s get into it and discuss this new piece of legislation and what Bernie Sanders, Elizabeth Warren, and these other Democratic senators have up their sleeve to raise Social Security benefits by $200 per month or $2,400 throughout the course of the entire year from millions upon millions of Social Security beneficiaries.

Sounds pretty good, right? Yeah, I totally agree with you. For fixed-income beneficiaries, this sounds like a really good thing. And it has been a very long time coming because we heard a proposal like this a long time ago, back in March of 2020. Sounded great.

And then, of course, it just disappeared. And then we didn’t hear anything about it until just recently when Bernie Sanders, Elizabeth Warren, and those other Democratic senators came out and once again revitalized this $200 per month raise. So I do want to talk you through all the details about this. Of course, I do want to talk about the details as far as for those of you who are Social Security beneficiaries. And then, of course, I also want to talk about maybe those of you who have not quite started claiming your Social Security benefits quite yet, because this could offer some major changes for a lot of people going forward, not just fixed income beneficiaries, but of course, as well, anybody else out there who is still awaiting receiving their benefits.

So I kind of want to make this comprehensive topic and talk about all the details of this legislation. All right, so let’s quickly run through what is this bill and what is this piece of legislation? What are they currently doing right here, right now, and what do they actually want to do to Social Security? Here’s what they want to do. It is called the Social Security Expansion Act.

That’s the name of this new piece of legislation. Basically what it comes down to is this. They want to increase taxes on higher-income individuals to actually make sure that all that money is going into the Social Security Trust fund and then ultimately take that money and flow it right back to those fixed-income beneficiaries receiving Social Security benefits at the tune of $200 per month or $2,400. Now, this would not be a short-term thing. It would not be for one year, two years, three years, something like that.

No, but rather this would be a permanent raise for many more years to come. Now, here’s the thing. This piece of legislation wants to reform Social Security and raise these benefits out until virtually the end of the century, out until 2096. So what is that, like 74 years from right now? So, yes, it’s a very long time for right now.

Obviously, it’s not the very end of the century, but it’s pretty close, right? So that is what they want to do with this piece of legislation. So here’s what it all comes down to. As of right now in 2022, which by the way, I’m writing this topic, 2022, if you happen to be watching it in 2023 or sometime afterward, of course, there’s probably a lot of updates on this thing by then. But again, just saying, as of right now, as I written this topic, the maximum Social Security income that is taxable is $147,000 right now in 2022.

So in other words, what that means is anybody that earns say, $147,000 or 150 or anything more than that, basically, the first $147,000 of income is taxable by Social Security. Any income beyond $147,000 today in 2022 is no longer taxable by Social Security. Well, Bernie Sanders, Elizabeth Warren, and the other Senate Democrats want to change that. They want to increase that so that anybody with an income over 250 grand a year is now paying taxes on basically all of their income over two hundred and fifty K a year. So basically what this is doing is it’s focusing on the higher-income people out there and really making them pay a lot more when it comes to Social Security.

And what is their plan with that money to stash it away and never do anything with it? No, the plan is to take all that money that is collected by Social Security payroll taxes from higher-income individuals and flow all of that back into the pockets of Social Security beneficiaries. So sounds kind of cool, right? Yeah. So here’s the thing that you need to know as a Social Security beneficiary.

This is what it would do is that if you’re already receiving benefits, it would actually take that extra money that they’re collecting through Social Security payroll taxes and it would give you that essentially $200 per month raise or $2,400 throughout the course of the entire year in your monthly benefits for millions of beneficiaries. However, if you’re not somebody who is claiming Social Security quite yet, this is where this comes into. Now, if you are somebody who is a higher income individual, primarily somebody earning over $147,000 or even $250,000 a year, now this is where you want to pay attention because this is where Bernie Sanders, Elizabeth Warren, and those other Senate Democrats want to come after more of your income. Now, again, I’m not here to take sides with this. I’m not simply saying anything with my opinions on this.

I’m simply delivering the information here’s. What they want to do is they want to start taxing your income above these thresholds so they can actually flow more money back into the trust funds of Social Security. Now, here’s what’s interesting about this. As I’ve read a lot of information about this and I’ve even heard many people speaking on this as well, here’s what it comes down to. Higher-income individuals in those amounts that I was just talking about, over 250 grand a year.

We’re simply saying, hey, if you add an extra, say, 1% 2%, or if you start taxing my income over 250 grand a year, it’s not that big of a deal. I’d be happy to tax my income above that level and then slow that money back to the people who probably need it more than me. That’s what these people are saying in some of these interviews that I’ve been reading about this or different interviews that I’ve been listening to about higher-income people talking about this. They’re simply saying my income is X or whatever it happens to be. If they tax me above these levels, I’m totally fine.

I’m happy taking that money and flowing it back to people living on a fixed income. So it’s kind of interesting because I was actually anticipating kind of more of like a pushback on this and a lot of people thinking, no, I don’t want to pay those extra taxes. But realistically, that’s not really what I was hearing. And again, there’s always two sides to every story. So again, there’s going to be a lot of different opinions out there and things like that.

And a lot of people have their own opinions on this, which is fine. But from everything that I was reading about this, some of the people were saying, by all means, if somebody else needs this benefit and if they need to cut my benefit, or if they need to tax a little bit more, whatever it happens to be, then this is what would happen. And ultimately it would help out those people living on a smaller fixed income benefit a lot more. So, I don’t know, kind of interesting to see all that kind of playing out. And of course, those are all the details that I was finding on this.

So basically the details about this, it’s super simple. They want to tax the higher income people more and then basically just take that money and flow it back to fixed income beneficiaries. That’s essentially all it really comes down to. And then, of course, it actually pushes this reform to Social Security out, like I said, until about 2096. So like 74 years as of right now, right?

So this would not be a short-term fix, unlike that piece of legislation that came out in March of 2020, where they simply wanted to boost benefits for about a year and a half. That’s all they wanted to do with that last proposal they came out of Chuck Schumer, Elizabeth Warren, and Ron Wyden way back in March of 2020. So as you can see here, this piece of legislation is way more probably a little bit better, just considering this is something that is permanent versus just a short-term fix like what they were trying to do a couple of years ago. So anyway, these are most of the details that you need to know about this. And of course, as I do get more details on this, I’ll continue to come back for you and break it all down for you.

But as of right now, there may be a little bit of opposition back and forth between Bernie and his buddies, along with everybody else in the Senate and of course, in Congress as a whole. We will need to see what happens here going forward as far as Congress and the midterm elections and things like this to see if anything flips or what happens there. But again, these are some of the different changes that Social Security may be facing here going forward with, again, the Social Security Expansion Act introduced by all of these Democratic senators. And of course, maybe they come together on concessions with this and say it’d be nice to do some kind of changes, but yet at the end of the day, we can’t quite do $200 per month. Again, all of this is up for negotiation.

Just like any piece of legislation that’s out there, they can change anything. It’s not that hard for them to do and they do it all the time. They always start with the starting point and then of course, from there they negotiate. They come together on terms. That the whole job of congress is to actually come forward with piece of legislation, new bills, things like this, work together with all parties, with virtually everybody in Congress, and then come together on an agreement that gets the vast majority of votes.

that’s virtually what congress does but as of recently I think all of us can agree that they have been doing a whole lot of nothing recently right or what I should say is mary maybe very limited amounts of actually uh work right so anyway of course as I do get more details on this I’ll be right here for you breaking it all down but it does look a little bit promising to see what actually happens here going forward but again at the end of the day will it actually pass or will it not only time will tell just like so many other pieces of legislation some other bills out there and other pieces of legislation to actually reform and raise benefits for fixed income beneficiaries but I’ll keep an eye on this one along with all the other pieces out there going on right now and as I do get more details of course I’ll be here for you helping you out in any way that I possibly can I hope this gives you a better glimpse into the social security expansion act out of these uh democratic senators and um of course I’ll keep you posted with any further details so share this topic with your friends family social media.

I’ll catch you again later in the next update.

 

 

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