Great! Social Security Update – The New Plan for Benefits & SSI Benefit Update 2022

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Great! Social Security Update - The New Plan for Benefits & SSI Benefit Update 2022
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Social Security and the new plan for benefits. Also, some additional information on SSI Supplemental Security Income. I have all the details for you on this topic.

And so I can keep you updated with all the latest details as information is changing very rapidly. And as I’ve said in previous topics, anytime something comes out that we could take advantage of, whether it’s money, programs, checks, anything else, I’ll be the first to tell you about it right here on the channel. So make sure to stay tuned as I will have all those details for you in some upcoming content as well. So again, thanks so much for visiting.

I want to talk about SSI for just a minute and then we will get into it and talk about these new details on Social Security benefits. So yesterday I was out with a topic talking about SSI, Supplemental Security Income and the potential $232 per month raise up to $1,073 each and every month and a maximum of $2,146 each and every month for married couples receiving SSI benefits.

how soon is this going to be happening for all of us receiving SSI? When are we going to get it? What is the delay? When is Congress going to pass this? So again, these are some of the questions that I was receiving.

So let’s kind of run through these really fast here. I’m going to answer it essentially in like one big wrapped-up answer. So basically, what it comes down to is all of this is within the SSI Restoration Act. We’ve talked about this in a few previous topics. But again, this is something that Congress currently has on the table right now.

But unfortunately, it’s being a little bit delayed simply because of all the talks on the next stimulus package, otherwise known as the build-back better agenda or the revised build-back better agenda, as we’ve also been talking about in previous topics as well. However, one of the major sticking points when it comes to this SSI Restoration Act is some of the lawmakers are saying Where’s the money going to come from. So this is kind of one of those things where they always look at it and say, okay, great proposals. However, it’s going to cost blank dollars over this long period of time. Where’s the money going to come from?

So let me break this down for you a little bit further. So according to this proposal, the SSI Restoration Act, it’s going to cost hundreds of billions of dollars every single year to raise the benefits. So as of right now, there’s about 8 million beneficiaries of SSI. Even if they raise the benefit by $232 per month, for these roughly 8 million beneficiaries, it would be about 185 billion dollars every single month, which translates into about $22 billion every single year. Well, what they want to do is extend this out for a minimum of ten years, which would bring this out to about $225,000,000,000 over the course of about ten years.

So as you can see here, that’s just one proposal as far as one of the provisions within this actual plan to raise these benefits out. So as you can see here, hundreds of billions of dollars. So as they always do, they wonder Where’s the money coming from. Well, the deal is with SSI. It’s a federally funded program, right?

It’s not Social Security. It’s funded out of the general fund. Therefore, tax revenues pay for this program. Well, we know right now one of their major jams that they continue talking about is taxing the rich. Well, there you go right there’s your money tax the rich and send it on down to the people who are maybe on the lower spectrum of the income levels right there to help them out.

So again, they do this with everything, right? We hear this all the time with Congress who’s paying for it. Where’s the money coming from? Well, this is something that we continue to see a lot.

But again, not that hard to figure out. It’s just coming out of tax revenue. So there you go. Right. So we got the solution right there in about what, a minute or two, we figured out the solution.

So yeah, anyway, that’s kind of one of the major hold-ups on this thing. But again, also, the negotiations on the next stimulus package is also holding this up and delaying things a little bit further. But again, as we get more information, I’ll keep you posted. I hope that answers the question for the vast majority of you asking those questions in yesterday’s video. By the way, if you didn’t see it yet, go back and check that one out.

It was from yesterday. I think you’ll find some pretty good information in that video. All right. Let’s quickly talk about Social Security and the new plan on benefits. All right, so we’ve been hearing about this for a very long time.

I mean, let’s be real. We’ve all heard this for a very long time now. Oh, Social Security is going broke. It’s bankrupt. The benefits are ending.

You know what I mean? We’ve been hearing this for a long time. I mean, realistically, for as far back as I can remember, I’ve been hearing about this even since I was a little kid. I remember hearing about this. Oh, Social Security, it’s ending in five years.

They’re broke. It’s done. It’s over. Okay, let’s be real. It’s not done.

It’s not over. It’s not broke. Right? It’s not going anywhere. Social Security benefits will not be going anywhere anytime soon.

So let’s just make that very clear. Please don’t worry about it. Your benefits will not be ending anytime soon. So if ever, realistically. Right.

However, there’s this new proposal out there right now because they’re trying to figure out what can we do to make this program more solvent? As we know, according to the most recent reports, as of about eleven years from right now, 2033 is when they’re actually looking at this program to become insolvent. In other words, the trust funds are totally dried up and they have no more money in the trust funds. Does that mean benefits are ending? No, it doesn’t mean benefits are ending, but rather it means the benefits could be reduced by about 22% or so, according to the most recent numbers, according to the most recent reports.

And what they’re actually calculating right now, they’re looking at benefits that could be reduced by about 22%. So that would be a huge cut. That would not be a good situation. However, they’re starting to explore this right now, figuring out what can we do to actually make sure that the program remains solvent and that everybody gets 100% of their guaranteed benefit, just like you’re receiving now versus 78% of your guaranteed benefit. Right.

100% -22% is 78%. And that’s what they’re projecting in about eleven years from right now. Again, it’s a long time from now, but I think all of us recognize time goes very fast. Right. Just look at the last two years that we’ve been dealing with this whole situation going on right now.

Two years already. Right. Unbelievable. Who would have thought this would be taking this long? All right.

But anyway, the new proposal out there right now is to raise the actual income gap as far as where Social Security benefits would be actually taxed. So as of right now, in 2022, the maximum amount of earnings that can be taxed by Social Security is $147,000. So let me give you an example. Let’s just say that somebody earns $200,000 in the course of a year. The first $147,000 of that is taxable by Social Security.

The other $53,000 is not taxable by Social Security. Right. So any income over $147,000 is no longer taxed by Social Security, while some of the proposals out there now are introducing this new threshold of raising it up and taxing up to 90% of aggregate income from a person’s income. Right. So 90% this would raise hundreds of billions of dollars in tax revenues that would actually go right into Social Security and help them remain solvent pretty much indefinitely.

Right. So rather than capping out that income, rather than maxing out the income threshold, but rather they basically just say 90% of aggregate income would be taxable by Social Security. Well, this would precreate a massive, massive windfall for Social Security and give them all the money that they would need essentially to make sure that this program remains solvent for many more years to come. Well, then again, brings in the next question is, okay, if they get this massive, massive windfall of all this money coming in if they actually were to tax essentially all income from somebody? So essentially, at this point, somebody earning $150,000 a year pays the same amount of Social Security tax as somebody earning $20 million a year.

It’s the same amount. Right. So that’s what I’m saying is it basically be focused on the highest-income individuals out there, and it would only affect a small portion of the population. But at the same time, the tax revenues would be massive that they’d be getting from this change in the policy. So this is something they’re working on.

However, as I said, the major question now would be, okay, great. Now that they have this major windfall of potential tax revenues by changing this, what would this mean potentially for raising benefits? Right. Well, this opens up a whole other can of worms that they’ve been talking about, which is, okay, we just got a huge lump sum of money, or figuratively, they don’t have it yet because they haven’t changed this policy. But in the event that they do change this and bring in all these extra tax revenues, there’s this major question kind of looming being, okay, we’ve got all this money now, what should we do with it?

Should we just pump it into the trust fund and make it solvent essentially forever, or should we potentially consider raising benefits?

Right. And again, this just opens up a whole nother can of worms, because I think a lot of us are wondering right here, hey, at what point are you going to raise benefits and help us out a little bit going along with the thing that I’ve said here a few times over the last couple of days, which is just like the President said, what was it a year ago or so he said something he said that no older adults or people with disabilities should ever need to live in poverty in America. Well, as we’ve talked about so many times now, essentially anybody that has a benefit under $1,073 a month, unfortunately, is living in poverty because that is the poverty line on a monthly basis. Right. So by boosting the benefits for millions of beneficiaries up to at least the federal poverty line would therefore be lifting these individuals out of poverty by definition.

Right. So, again, a lot of moving parts here, but these are some of the new things that are circling out there right now. However, I want to be completely transparent with you and let you know what’s going on with everything right now. Is this passed? No, it’s not passed right now.

Unfortunately, it is not passed. Is there going to be any action on this in Congress anytime soon? Well, that’s kind of up in the air right now because pretty much everything is being put on hold as a result of the build-back better agenda. So, of course, I’ll continue to watch this for you as I do every day with everything else, but I just want to be totally transparent with you and let you know what is actually going on right now. These are some of the talks that are out there as of right now.

However, as we get more details and as they continue to work their way through some of this and potentially bring it to the floor for debate and potentially hopefully vote on some of this and get it passed, of course, that’s going to be a different story for a different day, but as of right now, this is where we stand. So again, I just want to let you know where we currently stand with all this and what is actually going on with it. So I hope this helps you out again. I like to watch everything very closely and I like to lay it all out in these short videos to let you know what I’m finding, what they’re discussing, and some of the potential proposals that are out there on the table right now to potentially help out some of these fixed-income beneficiaries. And by the way, when I say some, I’m really referring to like millions.

Yes, millions and millions of beneficiaries. As of right now, there are about 70 million beneficiaries drawing on Social Security, so that’s a big number, right? So, anyway, I’ll keep you posted. Hope this helps you out again.

Enjoy your day. Thanks again. I’ll catch you in a little bit later in the next update.

 

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