Presidential Elections 2024: The Saviors of Social Security
By Journal Hill Team
The state of Social Security will be a topic of great concern in the 2024 Presidential elections. It has been well documented that without changes to funding, the program is set to run out of its Old Age and Survivors Insurance Trust Fund (OASI) money in the next decade.
The OASI Trust Fund provides 23% of all Social Security funding, which means that once the fund expires (by 2034), either Social Security payments will need to be cut to offset funding loss or payroll taxes, which currently cover only 77% of Social Security payments, must be increased.
While both Presidential candidates have been firm over preserving Social Security benefits, neither has presented a clear, viable plan to keep Social Security solvent and save the program. As part of his campaign platform in the 2020 elections, President Biden proposed a four-point Social Security plan that included an increase in payroll taxes on the wealthy to offset funding shortfalls.
That plan, which has resurfaced as a viable one for moving forward after 2024, also introduced a payroll tax of 12.4% on incomes at $400,000 and above and proposed the following:
Making inflationary adjustments to Social Security benefits based on the Consumer Price Index for the Elderly (CPI-E), which considers cost-of-living factors specific to senior Americans, allowing for a more accurate figure and leading to appropriately higher annual payments.
Increasing the Primary Insurance Amount (PIA) by 1% annually from the age of 78 to 82.
Raising the special minimum benefit amount for lower-wage workers to 125% of the federal poverty level.
Former President Trump has also stated that there would be no cuts to Social Security benefits if he were reelected. His plan, however, proposes ensuring the program’s solvency by reducing the administrative costs associated with it.
The greatest hurdle for both candidates will not so much be their respective specific plans to preserve Social Security, but rather the political atmosphere and whether they can secure approval from the Senate. For amendments to the program, the Senate needs to cast 60 votes of approval. Considering the divisive political landscape in Congress, a supermajority vote may be a pipedream.
A can kicked down the road by both parties, Social Security is safe for now. However, without major changes to the program and its funding, it may be at risk for significant payment cuts in the future.
