By Mark Miller

(Reuters] – Social Security has not failed to pay its benefits since it began mailing monthly checks in 1940. However, most Americans today are concerned about the program’s future.

You can’t blame them. Social Security’s two trust funds are projected to run dry in 2034, and the program would be able to pay only 80% of its obligations to retirees and disabled workers at that point. Politicians don’t exactly generate confidence when they make irresponsible – and wrong – comments claiming that Social Security is going bankrupt or running out of money.

This results in public concern and skepticism. Forty-two percent of working Americans tell Pew Research Center pollsters https://pewrsr.ch/3FeMCBa that they doubt they will receive any benefits from Social Security. A similar percentage believes they will be able to receive some benefit but it would come at a lower level. (https://pewrsr.ch/3FeMCBa).

Social Security trustees had been predicting this shortfall from the beginning of the 1990s but Congress has yet to do anything. What we need is a full, public debate on reform legislation – and an actual vote by lawmakers. The window is open for that to happen this year – the Democratic Party has developed an internal consensus on legislation that addresses the solvency problem, and also expands benefits modestly. Both legislative chambers are controlled by it, at least temporarily.

The Social Security 2100 Act has the support of 202 House Democrats, which is almost all party caucus. While the bill will not be able to overcome the Republican filibuster in Congress, it is important that Congress votes on the issue. 

“People have got to know where you stand,” said U.S. Representative John Larson, a Connecticut Democrat and chief sponsor of the legislation.

EXPANDED BENEFITS

According to analysis done by Social Security Actuaries, Social Security 2100 would eliminate 52% of the short-term deficit. It would push the trust fund depletion date back to 2038 by adding new payroll taxes to wages over $400,000 – currently, taxation stops at $142,800. Earlier versions of the bill restored solvency for 75 years by also gradually increasing payroll tax rates, but that has been eliminated to reflect President Joe Biden’s campaign pledge not to raise taxes on people with incomes below $400,000 per year.

Although the bill recognizes that benefits must be expanded, it can also address increasing income inequality and gaps between racial or gender in retirement security. These gaps have been widened by the COVID-19 epidemic. What’s more, Gen-Xers and Millennials are likely to fare even worse than boomers and today’s seniors when they reach retirement. Factors such as rising tuition costs, massive student debt, wage stagnation and declining traditional defined benefit pensions are all contributing to this trend.

Social Security 2100 will include a small 2% boost across-the board in benefits. This would allow for a greater annual cost-of living increase and shift to a generouser formula. The targeted benefits increase include a higher minimum benefit for seniors with very low incomes, as well as improved benefits for widows or widowers. It also would provide caregiver credits that increase benefits for people who take time out of the workforce to care for dependent family members. The Windfall Elimination Provision, (WEP), and Government Pension Offsets (GPO) would be repealed. These provisions currently penalize many who work in public service.

How would Republicans solve Social Security’s problems if they took control of Congress next January? 

In earlier versions of Republican reform proposals, benefits were cut in form of increased retirement ages or means testing. U.S. U.S. Scott also believes that all Americans should pay their income taxes, regardless of how much they earn.

Republicans also stated that they would prefer closed-door negotiations to address Social Security reform. Utah Republican Senator Mitt Romney has introduced the TRUST Act (ironically named), which creates a closed system for lawmakers to make changes to Social Security and Medicare trust fund, leading to a vote.

This strategy is popular with lawmakers trying to protect their signatures from unpopular legislation. The bill emerges from anonymous, bipartisan committees. This approach was not attempted before for Social Security. It was rejected by the Bowles Simpson commission in 2011. They proposed unpopular benefits cuts to seniors, which would have affected middle-class senior citizens. 

Biden’s promise to fight for Social Security reforms would be fulfilled, which could help energize voters. The public supports maintaining the current benefits level, even with new taxes. Public opinion polling consistently shows strong support.

Data for Progress’s new polling shows that a significant portion of Independent voters would be more inclined to vote for Democratic candidates for Congress in the fall if benefits were increased. It is a popular idea among middle-class Americans to improve Social Security. 63% tell Pew Pollsters that Social Security should be the top priority of Congress and President.

In 2022, this is an important battle.

These opinions are the views of the columnist at Reuters.