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Social Security 2100 Act would boost benefits and change COLAs
The proposal would fund the changes with a 12.4% investment tax on high earners making $400,000 or more, aiming to address Social Security’s projected trust fund depletion in the fourth quarter of 2032.
HousingWire reports that the Social Security 2100 Act, H.R. 9519, was reintroduced by Rep. John Larson and referred to multiple House committees. The bill would increase Social Security benefits by adjusting the COLA method, raising the minimum benefit level, and adding caregiver credits.
Under the proposal, the basic benefit formula would be modified by increasing the first percentage used in benefit calculations from 90% to 93%. Benefits would receive a modest across-the-board boost from 2027 through 2036, with long-term low earners eligible for a new minimum benefit set at 125% of the poverty guideline for workers with at least 30 qualifying years.
The bill would also alter how COLAs are calculated by using a senior-specific inflation index, CPI-E, instead of the current CPI-W approach. HousingWire says the legislation would use whichever index produces a higher increase, CPI-W or CPI-E, to determine cost-of-living adjustments.
To help address the program’s finances, the act would impose a 12.4% investment tax on high earners at $400,000 and up. Supporters, including The Senior Citizens League, say the changes target projected trust fund depletion in the fourth quarter of 2032, when incoming revenue would cover about 78% of scheduled benefits unless Congress acts.