Bill Overview
Title: Protecting and Preserving Social Security Act
Description: This bill revises methods for calculating various aspects of Social Security benefits, eliminates the cap on compensation subject to Social Security taxes, and extends eligibility for Social Security benefits during the month of a beneficiary's death.
Sponsors: Rep. Deutch, Theodore E. [D-FL-22]
Target Audience
Population: People worldwide who are beneficiaries or contributors to social security programs
Estimated Size: 215000000
- Social Security is a program primarily affecting retirees and those approaching retirement age, as they are the primary beneficiaries.
- Current workers who contribute to Social Security will also be affected due to changes in tax caps.
- About 80% of Americans and citizens in similarly structured social systems benefit from social security or similar schemes.
- The worldwide population over the age of 60 is growing, which increases the target population for retirement benefits.
Reasoning
- The policy primarily impacts individuals who are currently receiving Social Security benefits as well as those who are working and contributing to the Social Security tax system.
- Retirees and individuals close to retirement age are likely to experience a change in benefits calculation, which could affect their financial security and overall wellbeing.
- People with high incomes may see increased tax burdens due to the removal of the cap on Social Security taxes.
- Budget restrictions mean that the policy can only provide modest benefit increments and may affect a large number of people lightly rather than profoundly changing the lives of a few.
- There is a significant population of individuals in the US who either rely on Social Security benefits for their livelihood or are preparing to enter that phase, warranting a diverse range of perspectives in these simulated interviews.
Simulated Interviews
retired teacher (Florida)
Age: 70 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- The change in benefit calculations could provide me with a slight increase in monthly income, which is helpful.
- The policy seems to be addressing the growing needs of retirees, but I hope it doesn't lead to larger tax burdens for the working population.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
software engineer (New York)
Age: 35 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- As someone who earns above the current tax cap, the removal of this cap will mean more taxes, but if it ensures Social Security stability, it could be worth it.
- I hope these changes actually reflect in improved benefits when I retire.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
part-time accountant (Texas)
Age: 62 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- The policy might mean a little more support which could ease my financial planning for retirement.
- I'm glad to see steps taken to ensure that Social Security continues for future generations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
small business owner (California)
Age: 45 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I can see how removing the tax cap might affect my business expenses.
- There's some concern about how this will impact business planning and hiring in the short term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
retired nurse (Michigan)
Age: 80 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Any improvement in Social Security benefits will help me manage my expenses better.
- Many of us elderly rely heavily on these benefits, and any initiative to enhance them is much needed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 3 |
| Year 2 | 5 | 3 |
| Year 3 | 5 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 7 | 3 |
server (Colorado)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- Knowing my contributions may lead to better payouts in the future is somewhat reassuring.
- Concerned about how these changes might affect my take-home pay.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 7 | 6 |
manufacturing worker (Ohio)
Age: 55 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- I'm hoping the policy will stabilize and even potentially increase my future Social Security benefits.
- It feels important for future security, though I wonder about immediate impacts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 6 | 3 |
plumber (Illinois)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- I mostly see this as a change for my future Social Security benefits, which I'm okay with.
- The removal of the tax cap seems important for the program’s sustainability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
graphic designer (Oregon)
Age: 29 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- My concern is more short-term due to higher taxes, but long-term gains are welcome.
- I support measures that maintain a functional safety net.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
retired engineer (Pennsylvania)
Age: 65 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- Happy to see steps taken to potentially increase or secure benefits for my generation.
- Longer-term impacts on my grandchildren's benefits are even more important.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
Cost Estimates
Year 1: $5000000000 (Low: $4500000000, High: $6000000000)
Year 2: $5100000000 (Low: $4600000000, High: $6100000000)
Year 3: $5200000000 (Low: $4700000000, High: $6200000000)
Year 5: $5400000000 (Low: $4900000000, High: $6400000000)
Year 10: $5800000000 (Low: $5300000000, High: $6800000000)
Year 100: $10000000000 (Low: $9500000000, High: $10500000000)
Key Considerations
- Potential increase in overall payouts from Social Security affecting the fund's solvency over time.
- Eliminating the cap on taxable income significantly affects high earners and might have behavioral impacts.
- The reform's impacts depend on the actuarial estimates regarding life expectancy and population demographics.