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: Sen. Hirono, Mazie K. [D-HI]
Target Audience
Population: Individuals impacted by changes to the U.S. Social Security System
Estimated Size: 240000000
- The bill revises methods for calculating Social Security benefits, which are primarily relevant to current and future Social Security beneficiaries.
- Social Security in the United States covers a significant portion of its population, including retirees, disabled individuals, and survivors of deceased workers.
- Eliminating the cap on compensation subject to Social Security taxes will affect high-income earners in the workforce who exceed the previous cap.
- Since Social Security is a U.S.-based program, this bill will not directly affect the global population outside the United States, except for eligible non-citizen residents.
- Extending eligibility for benefits during the month of a beneficiary's death directly impacts beneficiaries and potentially their families.
Reasoning
- The policy changes target both current beneficiaries and high-income earners. Therefore, the population simulated includes retirees who are directly impacted by changes in benefit calculations, high-income earners affected by the tax cap removal, and individuals at various life stages who see indirect effects or no impact.
- Considering the budget constraints, the policy likely results in varying levels of impact, more significant among those directly affected by benefit calculations and taxes.
- The majority of the U.S. workforce pays into Social Security, hence the inclusion of both active workers and retirees.
- This policy aims to serve over 240 million individuals with constraints of $5 billion in the first year and roughly $54.2 billion across ten years, emphasizing small per capita budgetary impact.
Simulated Interviews
retired teacher (Florida)
Age: 68 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- I appreciate that Social Security might become fairer, as it is vital for my retirement.
- Removing the cap seems fair, ensuring everyone contributes their share.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
software engineer (California)
Age: 45 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- I'm not thrilled about paying more Social Security tax, but it's crucial to support the retirement system.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
retired nurse (New York)
Age: 72 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- With these changes, I hope I won't have to rely on my kids for support as much.
- It's a relief that Social Security will consider needs throughout my retirement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
construction worker (Texas)
Age: 35 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- It's good to know contributions will better support my future, even if I pay more now.
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 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
business owner (Ohio)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Although it increases my taxes, it's part of supporting the elderly community.
- I care about the longevity of the program for my own retirement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
retired librarian (Pennsylvania)
Age: 80 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- I rely heavily on my Social Security, these changes better acknowledge our longevity.
- It is nice to know there is an effort to sustain what's so fundamental.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
disabled and on Social Security Disability Insurance (SSDI) (Illinois)
Age: 50 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 1/20
Statement of Opinion:
- Changes are welcome if they increase my benefits, though I remain cautious.
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 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 7 | 4 |
accountant (Massachusetts)
Age: 30 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- More immediate worries in my life, but glad to know there is a future support plan.
- If anything, I support fairness in contributions.
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 | 8 | 8 |
| Year 20 | 8 | 8 |
public sector employee (Washington)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- Neutral on this policy, as benefits will likely retain their own standards.
- Change is necessary, but more as an observer.
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 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
high-income consultant (New Jersey)
Age: 39 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Facing higher taxes doesn't have a strong impact on my current wellbeing; willing to contribute.
- Supporting benefits that reduced financial struggles for my parents is worthwhile.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $5000000000 (Low: $4000000000, High: $6000000000)
Year 2: $5100000000 (Low: $4100000000, High: $6100000000)
Year 3: $5200000000 (Low: $4200000000, High: $6200000000)
Year 5: $5400000000 (Low: $4400000000, High: $6400000000)
Year 10: $5800000000 (Low: $4800000000, High: $6800000000)
Year 100: $9000000000 (Low: $8000000000, High: $10000000000)
Key Considerations
- Social Security is a critical component of the retirement system in the U.S., and changes to its funding and benefits can have widespread impacts.
- High-income individuals will contribute significantly more due to the removal of the tax cap.
- The impact on the economy will depend on the balance between increased taxes and enhanced consumer spending due to increased benefits.