Rep. Ted Deutch (D-FL), has proposed legislation that would improve Social Security for current and future recipients, strengthening its role as a cornerstone of American economic security for many more generations.
Unlike the recently released Deficit Commission proposals, Deutch’s bill, the Preserving our Promise to Seniors Act of 2010, would actually increase benefits for retirees and not throw younger Americans under the bus.
Specifics from the Deutch’s plan:
- Create a Consumer Price Index for the elderly (CPI-E), which takes rising medical expenses into account and more accurately reflects the typical expenses of elderly person;
- Codify a guaranteed supplemental payment of $250 that would go to all retirees every year there is no COLA;
- Eliminate the cap on income subject to Social Security taxes ($106,800), and;
- Add two more bend points to the benefit calculation, increasing benefit payments in a responsible way.
Deutch’s plan is notable because it would improve benefits and continue Social Security on sound financial footing. It’s solution — eliminating the cap on wages — is pragmatic. Current law ties the cap to inflation, which has risen more slowly than incomes of top earners in recent decades. By eliminating the cap, Social Security’s benefits would share the prosperity of Americans at every income level, and be strengthened for current and future generations.