$200 Social Security Increase 2023
Social Security recipients might get an extra $2,400 a year if a new plan recently proposed to Congress is approved.
As a result of inflation, annual cost-of-living adjustments that seniors get would be rendered null and void by the boost.
According to News, the Social Security Expansion Act was launched on June 9 by U.S. Rep. Peter DeFazio (D-Ore.) and U.S. Sen. Bernie Sanders (I-Vt.).
According to the bill, everybody who is currently receiving Social Security or who will reach 62 in 2023 will receive an additional $200 in their monthly check.
It's timely for a few reasons. First, it follows a Social Security Administration announcement earlier this month that Americans will stop receiving full payments in 13 years if nothing is done.
It comes during a period of unusually high inflation, which affects seniors on fixed incomes, many of whom rely only on Social Security payments.
The 5.9% Social Security COLA for 2019 is based on 2021 inflation data. Since then, inflation has above 8%, so Social Security recipients actually lose money.
The new bill increases each recipient's monthly check to reduce financial burden. A $200 increase would improve the average Social Security benefit by 12%.
The bill would not only increase the monthly contribution, but it would also make significant modifications to the program itself.
The yearly COLA could be based on the Consumer Price Index for the Elderly (CPI-E) rather than the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Applying the Social Security payroll tax to income over $250,000 would add extra funding. Above $147,000, Social Security isn't taxed.