This is way better. The new $200 per month raise for Social Security beneficiaries. I have all the details and what you need to know right here in the topic. This is a very important topic that I wanted to talk about through the details about this, because I’ve been seeing some questions down below saying, isn’t this the same proposal that was introduced back in 2020? Oh, no, it’s not. In fact, it is not even close. And this one is way better. And it would impact your benefits in a really big and positive way for a lot, a lot of beneficiaries. Therefore, I want to talk you through all the details about this, and let you know the differences and why this one is way better. And yes, this is a new proposal that was just released a short time ago by a couple of key senators. And I want to bring you all those details for you right here on the topic. as things are changing very rapidly.
But I’m doing all the research each and every day, boiling it down into these short topics, which I deliver a couple of times throughout the day so that you can stay posted with everything as it is hitting the wire every single day, especially as it pertains to money, benefits, programs, raises, reform checks, stimulus, and all of these other benefits that I’ve been mentioning throughout this topic, as well as so many other topics right here on the site. And I’ll continue to be here for you right by your side, helping you out in any way that I possibly can navigate this very busy and confusing time. All right, thanks again. Let’s jump right into this. All right, so let’s quickly talk about the proposal that hit the table back in March of 2020, just to give this contrast and to let you know what was proposed then and why this one that just came out a short time ago is actually way better. All right, So back in early 2020, in March of 2020, we had a small handful of Democratic senators.
In fact, Chuck Schumer, Elizabeth Warren, and Ron Wyden came out and they introduced this new proposal to send out a $200 per month boost for Social Security beneficiaries, including retirement disability, SSDI survivors, SSI, and VA beneficiaries. Now here’s the problem. Although that sounded really good. Obviously, all of us know nothing happened with it. It was never implemented. But here’s one of the other key provisions about it. This was a temporary raise. It was not permanent. This was only going to be a temporary raise out until the end of 2021. So by the time they would have implemented it, it only would have been about a year and a half, about 18 months worth of $200 per month raises to beneficiaries. And then after that time frame ended, it would have been it done. They would have removed the $200 per month raise because it was just temporary with the whole COVID situation. That was just basically starting at that time, Right.
So that was the original proposal. However, as we’ve talked about many times now, that one is gone. And realistically, like I’ve said so many times in the previous topics, as we’ve talked about this, I’ve said unless they come back with a new proposal, I highly doubt that one’s going to be coming back. Well, sure enough, we got a new proposal here. Let me tell you the details on this one because there’s a big difference here. All right, now, this one was recently introduced by a couple of key senators. Again, Bernie Sanders, who is an Independent, and Elizabeth Warren, who is a Democrat. Either way, it doesn’t really matter their parties. I’m just simply saying these are two key senators that introduce this bill. Now, this one is called the Social Security Expansion Act, and it does virtually the same thing. But there are some key differences between this one and the other one that we saw a couple of years ago. Here are the differences. Number one, yes, it does raise benefits by $200 per month or $2,400 throughout the course of the entire year. $200 a month time. Twelve months is $2,400 Right. I just want to make sure that we’re on the same page here.
All right So, yes, it does do that. However, get this. Here’s what they want to do. So the previous proposal from a couple of years ago basically would have just used federal funds like the general fund to fund that extra $200 per month boost versus this would actually be drawing out of the Social Security trust funds. But you might be thinking, but wait, this is going to draw down the trust fund faster and cause insolvency even faster. Technically, yes. But here’s the difference. They want to pay for all of this by taxing higher-income individuals even more Right.
So as of right now, in 2022, for the first $147,000 that anybody earns, they pay Social Security taxes on that. Any income over $147,000 is no longer taxable by Social Security. So here’s what they want to do. They want to re implement that Social Security payroll tax for any income over $250,000 a year. So the higher income people are taxed virtually any money over 250 grand a year would then be taxed once again by Social Security. So basically what they’d be doing is taxing higher-income people, which is actually a very small percentage of the population that earns income over that limit. But they’d be paying Social Security taxes on potentially hundreds of thousands of dollars above that level. Right?
So this would result in significantly more money flowing into Social Security, into the trust fund. I should say, as a result of that, they want to take that money and boost benefits by $200 per month or $2,400 for beneficiaries over the course of the entire year. Here’s the difference, though. This is not a temporary thing. This is not an 18-month quick fix that they just want to implement and then hit the road afterward, like the other proposal from a couple of years ago. No, this is actually a permanent raise to benefits going forward. So you can see here, this is actually a big, big deal because the last one from a couple of years ago, you would have gotten the raise, $200 per month for about 18 months or so. And then they just would have pulled the rug off from everybody and said, well, that’s it, $200 is gone Sorry. And that would not be a good situation. However, the difference here is with this new one, the Social Security Expansion Act. Basically, it’s permanent, right? Well, let me take that back. It’s not completely permanent. Forever into Infinity and forever, but rather it’s for basically the next 70 years, so out until basically the end of the century.
So it’s pretty much forever, right. For a lot of people. You know what I mean? So the point is, this is not a temporary thing, but rather it is a permanent thing. And this is how they’d want to achieve it. So you can see here a pretty big dramatic difference here. A temporary raise versus a permanent raise. And they actually have actionable steps to pay for this versus just, well, let’s pull some money out of the trust fund or sorry, let’s pull some money out of the general fund and pay for the $200 per month raise, and then let’s pull the rug out from other people after two years or a year and a half. No, that’s not the case here. This would be an ongoing thing going forward. So some pretty exciting stuff here. However, here’s what we need to wait for. We need to wait for Congress to pass this Right. So this is something where, again, just like everything kind of a major hurdle that we’re potentially facing. But there are some other ideas, some other proposals that are being floated out there as far as what they can do to actually kind of shore up Social Security, make sure that it stays solvent for many more years to come, including raising the full retirement age from 67, where it currently is now, to possibly 68 or possibly even 70, of course, raising payroll taxes on incomes over $400,000.
That’s another proposal out there. So there’s many different things hitting the table here. But as I mentioned previously, in many topics. Now if you want to watch it for any length of time, I’ve always said keep an eye on Bernie Sanders. He’s always got something cooking. He’s always got something going on. And a lot of times he’s advocating for the low income and fixed income beneficiaries. So I’m always watching Bernie Sanders Because you never know what he’s got up his sleeve and some of the things that he does actually do get passed. So you’re always going to kind of watch this and he was one of the key people behind introducing this new bill. Anyway, as you do get more details on this, of course, I’ll be right back here for you breaking it down, but this is the major difference. So for those of you that have been asking down in the comments section, Isn’t this the same thing? Well, it seems similar. It is pretty similar. But at the same time, this is a way better proposal because it’s forever versus just 18 months and that’s it, right? So you can see big difference, right?
Especially for those of us who plan to continue receiving benefits for many years to come. That’s a big, stark difference, right? I mean, that’s a huge difference versus $200 forever or $200 per month for a little while, right? So anyway, I hope that helps to better understand the situation as I do get more details. Like I said, of course, I’ll be right back here for you breaking it down and let you know what’s going on So that you can stay on top of everything that’s being announced out there. There are a lot of different things that are coming out and hitting the table right now, as I’ve always mentioned in so many topics, which is why I’m back a few times each and every day Bringing you these latest details and let you know what’s going on and how it’s going to impact you. Your money, your benefits, your bank account, anything else like this.
So again, thanks so much for reading me. Enjoy your day and I’ll catch you again later in the next topic.