Another Social Security Warning Issued
Recently, we looked at how the pandemic may affect Social Security. Unfortunately, there’s been another warning issued.
The Penn Wharton Budget Model (PWBM) projects that the Social Security Trust Fund could be depleted four years earlier than expected if the economic recovery from the pandemic is slow.
Job loss, lower interest rates, and extended periods of inflation are three of the factors which the PWBM projects lost revenue for Social Security.
The possibility of a slow recovery means passing the Social Security 2100 Act is all the more important.
The Social Social Security 2100 Act will directly address the factors measured in the PWBM’s slow-recovery projection.
The legislation provides a tax cut for millions of beneficiaries while having “millionaires and billionaires pay the same rate as everyone else.” This will help offset the reduction in revenue due to job losses and lower interest rates, while putting more money into the pockets of everyday citizens.
The 2100 Act will also dampen the impact of inflation on seniors because it replaces the current Cost-of-Living Adjustment formula with one that better takes into account seniors’ expenses. This will ensure accurate compensation for seniors if there’s long-term inflation.
To get a complete overview of the Social Security 2100 Act, please take a look at our Ultimate Guide to The Social Security 2100 Act.