Dems Pushing Tax Plan for Social Security

Recently, we blogged about how the rise in inequality in America over the last decade has had a tremendous impact on Social Security funding. This is because some high-income earners are escaping taxation on wages earned past $118,500 (the cap for the Social Security taxes). Photo of piggy bank

With this in mind, recently the HuffingtonPost reported that Democrats are backing a bill that would expand Social Security benefits, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), by placing taxes on income levels above $400,000.

The legislation was introduced last month by Rep. John Larson (D-Conn.) and endorsed by Rep. Chris Van Hollen (D-Md.), the top Democrat on the House Budget Committee. “You don’t save Social Security by cutting Social Security,” said Van Hollen, according to the HuffPost.

Meanwhile, congressional Republicans are pushing bills that could reduce benefits after already passing a ruling earlier this year that prevents Congress from diverting payroll taxes from the retirement insurance program to SSDI.

Keep in mind, economists have said that the SSDI program could run out of funds in late 2016, potentially resulting in a 20 percent payment cut to beneficiaries unless something is done to address funding issues.

We will continue to report about Social Security funding issues when we see stories in the news— follow our blog for more information about the ongoing debate.

We Can Help You Obtain SSDI

Remember, if you are disabled, our firm offers legal services when it comes to obtaining SSDI benefits. For more information about the SSDI application and appeals process, you can visit our Social Security FAQ page.

You should not let the ongoing debate about funding dissuade you from collecting benefits. You have paid into the Social Security system—if you are disabled, you deserve to be able to collect from it.

Troutman & Troutman, P.C. – Tulsa Social Security disability lawyers

Source: http://www.huffingtonpost.com/2015/03/18/social-security_n_6892488.html



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