In just over three months, Americans will head to the polls to decide the next President. Initially, it appeared that the 2024 presidential election might mirror the 2020 contest, with former President Donald Trump as the Republican candidate and incumbent Joe Biden as the Democratic nominee. However, President Biden has recently announced he will not seek a second term, thereby opening the Democratic field.
Vice President Kamala Harris now seems poised to become the Democratic presidential nominee. According to PredictIt.com, she has a 90% chance of securing the nomination. Social Security, a critical issue for many Americans, is expected to be a major focus during the election. Here are ten key points about Harris’s positions and proposals regarding Social Security.
Table of Contents
Campaign
Kamala Harris’s campaign has not yet released an official Social Security plan. Following Biden’s announcement, Harris and her team are in the process of finalizing her key proposals. Nevertheless, her previous support for certain policies provides clues about her likely approach to Social Security.
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Opposes Cuts
Harris is adamantly opposed to any measures that will diminish or eliminate the benefits provided by Social Security. This stance includes rejecting Republican suggestions to gradually raise the full retirement age, which would lead to a reduction in lifetime benefits.
Biden’s Proposals
During his time as Vice President, Harris backed the Social Security measures that President Biden proposed. Biden proposed reinstating the 12.4% payroll tax on earned income exceeding $400,000. Currently, this tax applies only to earnings up to $168,600, with income above this threshold being exempt.
Expansion Act
Under the Social Security Expansion Act, which was presented by Senator Bernie Sanders in 2019, Harris was a co-sponsor of the bill. This legislation proposed a more robust approach by reinstating the payroll tax on earnings above $250,000 to generate additional revenue.
COLA Expansion
The Social Security Expansion Act also aimed to increase benefits by changing the cost-of-living adjustment (COLA) calculation to the Consumer Price Index for the Elderly (CPI-E). The CPI-E more accurately reflects the spending habits of seniors compared to the current CPI-W.
Benefit Boost
Harris’s supported bill proposed increasing benefits for all current and new beneficiaries by $200 per month. This adjustment would help retirees regain some of the purchasing power lost, as the value of a Social Security dollar has decreased by 20% since 2010.
Special Minimum Benefit
The Social Security Expansion Act seeks to increase the special minimum benefit for low-earning workers to 125% of the federal poverty level, adjusted for inflation. Currently, this benefit stands at $1,066.50, which is below the federal poverty level of $1,255 per month for a single filer.
Tax Loopholes
Harris supports closing payroll tax loopholes for the wealthy by raising the net investment income tax by 12.4%, bringing it in line with the payroll tax on earned income. This adjustment would ensure that business and investment incomes contribute more substantially to Social Security.
Temporary Fix
While Harris’s supported proposals would help extend Social Security’s solvency, they would not offer a permanent solution. According to an analysis by the Urban Institute, Biden’s plan could add approximately five years to the trust fund’s solvency.
Congressional Support
Harris is likely to encounter significant challenges in Congress when it comes to Social Security reform. Securing the necessary 60 votes in the Senate for any amendments demands bipartisan cooperation, which has been difficult to achieve in recent years.
The future of Social Security is a critical issue for many Americans. As Kamala Harris moves into the spotlight as the Democratic nominee, her previous support for expanding benefits and ensuring the program’s solvency highlights her priorities. Although her approach provides temporary relief, achieving long-term stability for Social Security will require broader bipartisan support.
FAQs
How does Kamala Harris feel about Social Security benefit cuts?
She opposes any cuts to Social Security benefits.
Does Harris support Biden’s Social Security proposals?
Yes, she supports reinstating the payroll tax on income above $400,000.
What change does the Social Security Expansion Act propose for COLA?
It suggests calculating COLA using the CPI-E rather of the CPI-W.
How much would benefits increase under Harris’s supported plan?
Benefits would increase by $200 per month.
What Social Security reform obstacles would Harris face?
She needs bipartisan congressional backing, which is challenging.