Congressman Reid Ribble (R-Wisconsin) has introduced the Save Our Social Security Act in order to
make Social Security solvent for another 75 years. This year, Social Security will spend $15.7 billion more than it collects in taxes, the Congressman notes. At this rate, the fund will run dry by 2034, resulting in benefit cuts that year of 21% for each senior.
The legislation proposes to close the collection/spending gap through progressive revenue, progressive benefit changes, and increasing the retirement age. The Social Security Administration projects that the bill would increase revenues to the Administration by $168.5 billion in the first 10 years, $355.2 billion by 2034, and $10.6 trillion over the next 75 years.
Payroll currently subject to Social Security taxes is $118,500. The bill would gradually increase the payroll cap to $156,550 in 2017, and to $308,750 by 2021. It would change the formula used to calculate benefits of high earners from 15% to 5% over five years, or 2% a year from 2017 to 2021.
Starting in 2022, full retirement age would increase from 67 to 69. The bill would adjust the cost of living adjustments to a more specialized index that seeks to track retail prices as they affect urban hourly wage earners and clerical workers, and places a slightly higher weight on food, apparel, transportation and other goods and services, while placing a lightly lower weight on housing, medical care and recreation.
It would create a minimum benefit at 125% of poverty, increase benefit amounts after 20 years of eligibility, calculate a person’s benefit based on their highest earnings in 38 years, and prevent the Trust Fund from being used for anything but the current fiscal year.