Protecting and Preserving Social Security Act
Summary
The Protecting and Preserving Social Security Act aims to amend Title II of the Social Security Act and the Internal Revenue Code of 1986 to improve the old-age, survivors, and disability insurance program. Key provisions include using a Consumer Price Index for Elderly Consumers (CPI-E) to calculate cost-of-living increases and modifying the determination of wages and self-employment income above the contribution and benefit base. The bill also seeks to include surplus earnings in the Social Security benefit formula.
Expected Effects
If enacted, this bill would change how Social Security benefits are calculated, potentially increasing benefits for the elderly due to the use of CPI-E. It would also alter the way high earners contribute to Social Security, phasing in a system where earnings above a certain threshold are not fully counted towards contributions and benefits. The inclusion of surplus earnings in the benefit formula could further impact benefit amounts.
Potential Benefits
- Increased Benefits for Elderly: Using CPI-E could result in higher cost-of-living adjustments for Social Security benefits, better reflecting the spending patterns of seniors.
- Fairer System: Adjustments to contribution and benefit calculations aim to address perceived inequities in the system.
- Improved Financial Security: Higher benefits could improve the financial security of retirees and disabled individuals.
- Targeted Support: The bill focuses on improvements to old-age, survivors, and disability insurance programs.
- Modernization: Updating the benefit formula to include surplus earnings could lead to a more accurate calculation of benefits.
Most Benefited Areas:
Potential Disadvantages
- Potential for Increased Costs: Using CPI-E and including surplus earnings could increase the overall cost of the Social Security program.
- Complexity: The changes to the benefit formula and contribution calculations could make the system more complex and difficult to understand.
- Uncertainty: The phased implementation of changes to wage and self-employment income determination could create uncertainty for high earners.
- Delayed Implementation: Some provisions, such as the use of CPI-E, have delayed effective dates, potentially delaying benefits.
- Potential for unintended consequences: Changes to complex systems like social security can have unintended consequences that are difficult to predict.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's mandate to "promote the general Welfare" (Preamble). Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The bill's provisions related to Social Security fall under this power.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).