The Urgent Battle to Save Social Security: A New Plan to Undo Disastrous Cuts

A critical juncture is fast approaching for one of America's most vital safety nets: Social Security. With projections indicating a potential 20-23 percent cut in benefits as early as 2033, millions of Americans face an uncertain future. However, a significant bipartisan effort is now underway to not only avert this looming crisis but also to strengthen the program for generations to come.

Representative John Larson (D-CT) has reintroduced the Social Security 2100 Act, a comprehensive plan designed to undo what many are calling "draconian cuts" and ensure the long-term solvency of this indispensable program.

The urgency of the situation cannot be overstated. Without congressional action, the Social Security trust funds are projected to be unable to pay full promised benefits by the mid-2030s.

This would translate into an automatic cut for approximately 67 million beneficiaries, including retirees, people with disabilities, and survivors—a financial blow that could devastate household budgets across the nation. The cuts would impact current beneficiaries, those nearing retirement, and future generations alike, eroding the financial security that Social Security was established to provide.

At the heart of the Social Security 2100 Act is a bold, yet straightforward, approach to taxation.

The plan proposes to eliminate the existing cap on earnings subject to Social Security taxes. Currently, earnings above $168,600 (for 2024) are exempt from these taxes, meaning high-income earners contribute a smaller percentage of their total income to the program compared to average workers. Larson's proposal seeks to rectify this imbalance by requiring those earning above $400,000 to contribute to Social Security on all their income, effectively extending the 12.4 percent Social Security tax (split between employee and employer) to their entire earnings.

This strategic adjustment is projected to dramatically improve Social Security’s financial outlook, extending its solvency for 75 years or more.

But the plan doesn't stop at mere solvency; it aims to enhance benefits for those who need it most. The Social Security 2100 Act includes a modest across-the-board benefit bump for both current and future beneficiaries, offering a much-needed increase in purchasing power. Furthermore, it advocates for a more accurate measure of inflation by adopting the Consumer Price Index for the Elderly (CPI-E) for calculating cost-of-living adjustments (COLAs).

The CPI-E better reflects the spending patterns of seniors, particularly their higher healthcare costs, ensuring that benefits keep pace with their actual living expenses.

Beyond these core reforms, the bill addresses other critical issues. It proposes an increase in the minimum benefit, ensuring that low-income workers who have contributed throughout their careers receive a more dignified safety net in retirement.

Crucially, the Social Security 2100 Act also seeks to repeal the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions have long been criticized for unfairly reducing Social Security benefits for millions of public sector workers, such as teachers and firefighters, who also earned pensions from non-covered employment.

Their repeal would restore full, earned benefits to these dedicated individuals.

With over 180 co-sponsors already rallying behind the bill in the House, the Social Security 2100 Act represents a significant bipartisan consensus on the urgent need for reform. Lawmakers from across the political spectrum are recognizing the imperative to act now, rather than waiting until the eleventh hour.

The message is clear: inaction is not an option when the financial well-being of millions of American families hangs in the balance. The ongoing debate surrounding Social Security is not just about numbers; it's about the promise of a secure retirement, the dignity of those with disabilities, and the protection of survivors.

This new plan offers a hopeful path forward, demonstrating that with political will, America can preserve and strengthen this cornerstone of economic security for generations to come.