February 03, 2015
Honorable John Larson
United States House of Representatives
Washington, D.C. 20515
Dear Representative Larson:
On behalf of the millions of members and supporters of the National Committee to Preserve Social Security and Medicare, I write to endorse your legislation entitled the “Social Security 2100 Act.” The National Committee commends you for introducing this legislation, which extends the solvency of both the Old-Age and Survivors and the Disability Insurance Social Security trust funds throughout the 75-year valuation period.
Your bill gives all Americans confidence that Social Security will be there for them when they need it, whether they apply for retirement or disability benefits. Moreover, your bill achieves this while at the same time making important improvements to the benefits Social Security provides.
Included in the “Social Security 2100 Act” are the following benefit improvements:
- An across-the-board increase for all beneficiaries of about 2 percent, a change that is projected to yield an annual increase for the typical retiree of $300;
- Adoption of the Consumer Price Index for the Elderly (CPI-E) for the purpose of determining cost-of-living adjustments for Social Security beneficiaries;
- Tax relief for Social Security beneficiaries due to an increase in the threshold for taxation of Social Security benefits to $50,000 for individuals and $100,000 for joint filers, up from $25,000 and $32,000 respectively; and
- An increase in the special minimum benefit so that it equals up to 125 percent of the poverty level for an individual. This would be indexed in future years by increases in the average wage level prevailing in the national economy.
The “Social Security 2100 Act” strengthens Social Security’s financial foundations by increasing revenue dedicated to the support of the program. First, it extends the payroll tax to all wages paid to workers that are in excess of $400,000. Over time, the bill would completely eliminate the cap on Social Security payroll taxes. Second, the “Social Security 2100 Act” implements a small, gradual increase in workers’ and employers’ contributions to Social Security. Because the increase is phased in over a long period of time, the average worker would see his or her annual contributions to the Social Security program increase by about 50 cents per week.
The National Committee supports the provisions included in your bill, and proudly endorses the “Social Security 2100 Act.” This bill represents a bold step on behalf of seniors and all Americans by strengthening and safeguarding Social Security for future beneficiaries while at the same time making important improvements in the adequacy of the benefits the program provides. We look forward to working with you to enact this important legislation.
President and CEO