The Big Changes Awaiting Social Security If Kamala Harris Wins the Elections
According to Lagradaonline, Following President Joe Biden’s unexpected decision to withdraw from the 2024 presidential race, Vice President Kamala Harris has emerged as the leading candidate for the Democratic ticket. With Biden’s endorsement, Harris is now at the forefront of the party’s campaign. Her policy positions, especially those on Social Security, are expected to play a significant role as voters evaluate their options in the upcoming election.
While Harris’ specific stance on Social Security remains somewhat unclear, she has generally supported President Biden’s policies. As a Democrat, she has consistently opposed the cuts to Social Security and Medicare proposed by Republicans. If she secures the presidency, here are five potential changes to Social Security that may occur based on current Democratic plans.
Tax Higher Incomes
One of the key concerns surrounding Social Security is its long-term financial stability. The Old Age and Survivors Insurance (OASI) Trust Fund is expected to run out of money within the next decade, which would leave Social Security reliant on payroll taxes that currently cover about 77% of benefits. To address this issue, the Biden-Harris administration has proposed a four-point plan, including taxing income over $400,000. Currently, wages above $168,600 are not taxed, but this threshold will increase to $168,600 in 2024. If Harris becomes president, this plan could be implemented to bolster Social Security’s finances.
Change the COLA Formula
The Biden-Harris administration has also proposed changing how Social Security’s annual cost-of-living adjustments (COLAs) are calculated. Currently, COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Harris may push for a switch to the Consumer Price Index for the Elderly (CPI-E), which better reflects the rising health care costs faced by seniors.
Raise the Primary Insurance Amount (PIA)
The Primary Insurance Amount (PIA) determines the Social Security benefits individuals receive based on their age and earnings history. The administration has proposed increasing the PIA for people between the ages of 78 and 82 to address the rising health care costs faced later in life. If Harris wins the presidency, this increase could provide much-needed financial support for elderly Americans.
Increase the Special Minimum Social Security Benefit
Low-wage workers receive a special minimum Social Security benefit, which is independent of their total lifetime earnings. In 2024, this benefit starts at $50.90 per month for individuals with 11 years of Social Security coverage and goes up to $1,066.50 for those with 30 years of coverage. The Biden-Harris administration has proposed increasing the minimum benefit to 125% of the federal poverty level. This change would reduce the burden on other federal programs and provide more support to low-income retirees.
Increase SSA Funding
To improve customer service and administrative functions, the Biden-Harris administration plans to increase funding for the Social Security Administration (SSA) by 9% over the 2023 levels. This funding boost aims to enhance the efficiency of SSA field offices, state disability determination services, and teleservice centers, while also improving support for individuals with disabilities and their families.
These proposed changes highlight the administration’s commitment to addressing Social Security’s financial challenges while ensuring that the program continues to meet the needs of retirees, low-wage workers, and disabled individuals. If Kamala Harris becomes president, these policy positions are likely to be central in the ongoing national discussion on Social Security’s future.
