Kamala Harris on Social Security – 10 Key Points You Need to Know

In a little over three months, Americans will cast their votes to determine the next President. Initially, it seemed like the 2020 presidential election would repeat itself with former President Donald Trump as the Republican candidate and incumbent Joe Biden as the Democratic nominee. However, President Biden recently announced he wouldn’t be seeking a second term, opening the field for the Democratic nomination.

Vice President Kamala Harris now has the inside track to becoming the Democratic presidential nominee. PredictIt.com suggests she has a 90% chance of securing the nomination. Social Security, a crucial issue for many Americans, is expected to be a significant topic during the election. Here are ten key points about Harris’s stance and proposals on Social Security.

Campaign

Kamala Harris’s campaign has yet to outline an official Social Security plan. Since Biden’s announcement, Harris and her team are working on detailing her key proposals. However, Harris’s past support for specific policies offers insights into her likely approach.

Opposes Cuts

Harris firmly opposes any proposals that would reduce or cut Social Security benefits. This includes Republican suggestions to gradually increase the full retirement age, which would reduce lifetime benefits.

Biden’s Proposals

As Vice President, Harris supported President Biden’s Social Security proposals. Biden advocated for reinstating the 12.4% payroll tax on earned income above $400,000. Currently, this tax applies to earnings up to $168,600, exempting income above this threshold.

Expansion Act

In 2019, Harris co-sponsored the Social Security Expansion Act introduced by Senator Bernie Sanders. This bill proposed a more aggressive approach, reinstating the payroll tax on earnings above $250,000 to raise additional revenue.

COLA Expansion

The Social Security Expansion Act also sought to boost benefits by switching the cost-of-living adjustment (COLA) calculation to the Consumer Price Index for the Elderly (CPI-E), which reflects the spending habits of seniors better than the current CPI-W.

Benefit Boost

Harris’s supported bill would increase benefits for all current and new beneficiaries by $200 per month. This would help retirees regain some lost purchasing power, as the buying power of a Social Security dollar has decreased by 20% since 2010.

Special Minimum Benefit

The Social Security Expansion Act aims to raise the special minimum benefit for low-earning workers to 125% of the federal poverty level, indexed for inflation. Currently, this benefit is $1,066.50, below the federal poverty level of $1,255 per month for a single filer.

Tax Loopholes

Harris supports ending payroll tax loopholes for the wealthy by increasing the net investment income tax by 12.4%, aligning it with the payroll tax on earned income. This would ensure that business and investment incomes contribute more significantly to Social Security.

Temporary Fix

While Harris’s supported proposals would extend Social Security’s solvency, they wouldn’t provide a permanent fix. An analysis by the Urban Institute suggests that Biden’s plan would add about five years to Social Security’s trust fund solvency.

Congressional Support

Harris is likely to face significant challenges in Congress regarding Social Security reform. Achieving the necessary 60 votes in the Senate for any amendment requires bipartisan cooperation, which has been elusive in recent years.

The future of Social Security is a pivotal issue for many Americans. As Kamala Harris steps into the Democratic nomination spotlight, her past support for expanding benefits and ensuring the program’s solvency provides a clear indication of her priorities. While her approach offers temporary relief, achieving long-term stability for Social Security will require broader bipartisan support.

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