Social Security: Where do Democrats and Republicans stand

(NewsNation) — Social Security recipients volition see their benefits cut successful astir a decennary if Congress doesn't instrumentality action, but Democrats and Republicans person yet to hold connected a solution.

Democratic lawmakers connected Capitol Hill person precocious introduced aggregate bills that would hole portion of the solvency contented by expanding the payroll taxation to precocious earners. Congressional Republicans person criticized that program portion offering fewer circumstantial alternatives.

"Will [Republicans] spell down closed doors and person a bundle that has immoderate cuts? Or volition they bash it retired successful the unfastened and bash what the Democrats privation to do? I deliberation that's what's truly astatine stake," said Nancy Altman, president of Social Security Works, a progressive advocacy radical successful favour of expanding the system.

Here's what each enactment has enactment guardant connected Social Security recently.

What Democrats person called for

Democrats privation to code the Social Security shortfall by extending the payroll taxation to those with higher incomes.

The Social Security 2100 Act, sponsored by Representative John Larson, D-Conn., would taxable income supra $400,000 to Social Security payroll taxes — the program's main backing source. Today, the 6.2% tax lone applies up to $168,600.

The connection mirrors the Biden-Harris administration's plan, which called for extending solvency "by asking the highest-income Americans to wage their just share."

A 2022 poll of registered voters suggests lifting the payroll headdress to see higher wages would person wide support, with 79% of Republicans and 88% of Democrats successful favor.

Critics of the plan, similar Brian Riedl astatine the blimpish Manhattan Institute, point retired that uncapping the payroll taxation would inactive effect successful a shortage aft conscionable 5 years. He said the program would "dramatically rise taxes not conscionable connected the affluent but besides the precocious mediate class."

Larson's bill, which has the enactment of astir House Democrats, would summation benefits by 2% crossed the committee for each Social Security beneficiaries. It would besides boost benefits specifically for lower-income seniors, arsenic good arsenic widows and widowers.

If passed, the program would tweak however the authorities calculates the yearly cost-of-living-adjustment (COLA) to guarantee the look accounts for the Consumer Price Index for Elderly Consumers (CPI-E). That scale weighs wellness attraction costs much heavily, which could mean higher yearly bumps for retirees.

To wage for those changes, the authorities would widen the payroll taxation to see incomes supra $400,000 and adhd an further 12.4% nett concern income taxation (NIIT) for taxpayers making implicit $400,000.

Earlier this year, Representative Angie Craig, D-Minn., introduced a bill to destruct national taxes connected Social Security benefits for seniors.

Today, individuals who gain supra $25,000 pay income tax on up to 50% of their Social Security status benefits. For seniors who gain supra $34,000, an further 35% of benefits are taxable. Nine states also cod taxes on Social Security.

Like different proposals, the authorities addresses gross concerns by extending the payroll tax, successful this lawsuit to incomes supra $250,000.

What Republicans person called for

Republicans person been little upfront astir their imaginativeness for Social Security but importune they won't chopped benefits for seniors.

On the run trail, Trump has vowed not to slash benefits oregon rise the status age. The official Republican Party Platform adopted astatine the Republican National Convention echoed those promises.

Trump has besides called for an extremity to national taxes connected Social Security benefits but hasn't explained however helium would code the consequent gross shortfall.

"There's immoderate ideas floating retired there, but not thing really being introduced into Congress," Richard Johnson, a elder chap astatine the Urban Institute, said of the GOP's attack to Social Security.

For now, the astir broad GOP program comes from the Republican Study Committee's (RSC) 2025 fund proposal.

The RSC, which comprises astir 80% of each House Republicans, projected raising the status property for those not adjacent status “to relationship for increases successful beingness expectancy." The program would besides "limit and signifier retired auxiliary benefits for precocious income earners" who are not adjacent retirement.

In the proposal, Republican lawmakers blasted the "reckless spending policies" of President Biden and Congressional Democrats, arguing that their governmental opponents would accelerate Social Security benefits cuts for seniors.

The GOP lawmakers said the Democrats' payroll taxation program would destruct occupation opportunities successful the U.S. and "fail to marque Social Security solvent."

Instead, the RSC said its fund would code concerns by expanding payroll taxation revenues done "pro-growth taxation reform" and "pro-growth vigor argumentation that lifts wages" arsenic good arsenic "regulatory reforms that summation economical growth."

"We volition not present oregon ever enactment cutting oregon delaying status benefits for immoderate elder successful oregon adjacent retirement," the RSC said.

The RSC called connected President Biden to "stop the governmental gamesmanship" and asked him to commencement "engaging with Republicans connected sensible reforms."