Social Security benefits increase in 2025, issue looms in election

Craig Nigrelli

THE SOCIAL SECURITY ADMINISTRATION ANNOUNCED THURSDAY BENEFICIARIES WILL RECEIVE A 2.5% INCREASE IN 2025. THAT AMOUNTS TO A BOOST OF ABOUT $50 PER MONTH, ON AVERAGE.  MORE THAN 70 MILLION AMERICANS WILL BE AFFECTED.

SOCIAL SECURITY IS TRADITIONALLY A POLITICAL FOOTBALL DURING ELECTION YEARS AND THIS YEAR IS NO DIFFERENT.   VICE PRESIDENT KAMALA HARRIS HAS STATED SHE WOULD STRENGTHEN SOCIAL SECURITY BY QUOTE “MAKING MILLIONAIRES AND BILLIONAIRES PAY THEIR FAIR SHARE IN TAXES.”  RIGHT NOW PAYROLL TAX DEDUCTIONS FOR SOCIAL SECURITY,  STOP, AFTER A PERSON EARNS $168,600 DOLLARS. 

IN 2019, AS A U.S. SENATOR,  HARRIS CO-SPONSORED THE SOCIAL SECURITY EXPANSION ACT.  THE BILL PROPOSED SUBJECTING ALL INCOME OVER $250,000 PER YEAR TO THE SOCIAL SECURITY PAYROLL TAX.   HOWEVER,  THE BILL DID NOT MAKE IT OUT OF THE  SENATE FINANCE COMMITTEE.

RECENTLY, IN THIS ELECTION CYCLE, FORMER PRESIDENT DONALD TRUMP SAID HE’S IN FAVOR OF ELIMINATING THE FEDERAL TAX ON SOCIAL SECURITY INCOME.  HE HAS SAID HE WOULD PROTECT SOCIAL SECURITY BENEFITS BY HAVING A STRONG ECONOMY.  HOWEVER, HE HAS PREVIOUSLY CALLED SOCIAL SECURITY AT **PONZI SCHEME**.  

ECONOMISTS, HAVE SOUNDED THE ALARM THAT THE SOCIAL SECURITY TRUST FUND WILL RUN OUT OF MONEY IN THE YEAR 2035, DUE TO AN AGING POPULATION AND FEWER WORKERS CONTRIBUTING TO THE SYSTEM.   THE SHORTFALL AND LACK OF REVENUE COULD RESULT IN REDUCED BENEFITS FOR RETIREES AT SOME POINT. 

THIS 2.5 % COST OF LIVING INCREASE, OR COLA, IS THE LOWEST INCREASE SINCE 2021.  BY COMPARISON, IN 2023, THE COST OF LIVING INCREASE WAS NEARLY 9 PERCENT.   WHILE IN 2022 IT WAS ABOUT 6 PERCENT, because of inflation.   STILL THE HEAD OF THE AARP SAID IT WILL HELP OLDER AMERICANS BETTER AFFORD ITEMS SUCH AS GROCERIES AND GAS.  FOR MORE UNBIASED UPDATES, DOWNLOAD THE STRAIGHT ARROW NEWS APP