Social Security in the United States is making headlines again following the latest statement from the government and the SSA. Both entities have confirmed that the bill known as the You earn it, you keep it act is starting to take shape. This could mean a historic change in the way this program is funded.
The announcement has brought relief and even euphoria to millions of beneficiaries who had been waiting for a clear solution regarding the future of pensions. The government's message focuses on a key point: they want to expand the Social Security payroll tax.
Social Security gives the best news to millions of Americans: many celebrate it
Until now, that tax has only applied to the first $176,100 (176,100 euros) of annual income. That means any amount above that was exempt from contributions. With the new plan, the taxable base will be expanded and a new limit will be set for those who earn more.
The proposal states that taxpayers with annual incomes above $250,000 (250,000 euros) will have to contribute to the system again. In practice, this means that higher-income workers will have to contribute more than before.
The system becomes fairer and more sustainable, government says
The government justifies this change as a necessary step to ensure the viability of Social Security over the coming decades. According to the SSA, the system needs new sources of income because life expectancy has increased and there are more retirees compared to fewer active workers.
The direct beneficiaries will be millions of Americans who depend on their monthly Social Security check. By having those who earn more contribute more, the system becomes fairer and more sustainable.
The official statement insists that this is not about making cuts, but about strengthening the program with an additional effort from those with the greatest economic capacity. The government's justification is clear: those who generate the most income must help ensure that no one is left without their pension in the future.
The measure protects workers and retirees
The SSA has explained that the current base of $176,100 (176,100 euros) will remain, but there will be a second bracket for high incomes. This way, the system's progressivity is not broken and an extra flow of funding is ensured. In the agency's words, this is a balanced measure that protects both workers and retirees.
As for the date, experts believe that the bill could be approved in the coming months, although it still requires debate in Congress. If everything goes as planned, the new rules would begin to be applied gradually, giving companies and taxpayers time to adapt.