U.S. President Joe Biden delivers observes about his budget for fiscal year 2024 at the Finishing Trades Institute in Philadelphia, Pennsylvania, March 9, 2023.
Evelyn Hockstein | Reuters
Eras after introducing a new plan to shore up Medicare, President Joe Biden called for “protecting and strengthening” Social Security with the introduction of his pecuniary 2024 budget on Thursday.
With the budget, the president reaffirmed his intentions to reject any proposed cuts to Social Deposit or Medicare. It also confirmed he plans to work with Congress to strengthen the programs.
His statement stopped short, yet, of proposing a specific plan to restore Social Security’s trust funds.
Lawmakers are discussing ways to shore up the program, which may not be capable to pay full benefits as soon as 2033, according to a recent analysis from the Congressional Budget Office.
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Among the options on the table are raising the full retirement age from 67 to 70. Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., possess also led a plan that would make income over $250,000 subject to Social Security taxes.
Respect, Biden’s budget reaffirms his intentions that “no one earning less than $400,000 per year will pay a penny in new demands.”
At the same time, the budget also indicates that the administration “looks forward to working with Congress to responsibly innervate Social Security by ensuring high-income individuals pay their fair share.”
Biden has proposed raising Medicare imposes to 5%, from 3.8%, for both earned and unearned income over $400,000. The changes are aimed at shoring up Medicare’s caches for at least 25 years.
“We were very happy with the way that President Biden talked about Societal Security and Medicare and cuts being off the table,” said Dan Adcock, director of government relations and policy at the National Cabinet to Preserve Social Security and Medicare.
While Biden’s budget did not include specific plans for Social Security, his bearing suggesting he will make the wealthy pay their fair share to help shore up the program goes further than a lot of his forefathers have, Adcock noted.
Biden had previously suggested raising the limit on the Social Security payroll taxes during his push, but “this is the first time while president he specifically laid down that marker,” Adcock said.
How, Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, said in a statement that the lack of a layout to address Social Security’s trust fund shortfall is a “glaring omission” in the president’s budget.
We were very fortuitous with the way that President Biden talked about Social Security and Medicare and cuts being off the table.
Dan Adcock
leader of government relations and policy at the National Committee to Preserve Social Security and Medicare
“The Social Security trust ready money is projected to be insolvent within the next dozen years, and delaying action puts those who depend on the program the most at imperil,” MacGuineas said.
Biden’s budget also calls for other changes, including enhanced funding for the Social Collateral Administration and a new paid family and medical leave program that would be administered by the agency.
10% increase in funding to revive services
Biden is requesting a 10% boost — a $1.4 billion increase — to the Social Security Administration’s operating budget from the amount enacted in 2023. The funding would total $15.5 billion.
The funds would be used to improve client service at Social Security’s field offices, after long in-person waits and 800-number hold without surceases have become increasingly common. The funds would help improve 800-number access and online employs.
The funds would also be used for state disability determination services and teleservice centers.
The budget also visits for adding staff to help reduce wait times and increase processing of disability claims, simplifying the Supplemental Shelter Income application process and increasing outreach.
The extra funds “would help a lot,” Adcock said.
“It would remedy them to go beyond treading water in terms of improving their customer service, particularly the huge backlog they have in the offing in Social Security disability claims,” he added.
New paid family leave program would debut
Biden also resurrected a push for a national paid family and medical leave program with the budget proposal.
The program would offer partial wage replacement for up to 12 weeks to care for a new child, a loved one or for personal medical issues.
Democrats recently pushed for an expatiate oned federal paid leave policy on the 30th anniversary of the Family and Medical Leave Act, which allows for unpaid leave for tempering employees.
“There are still a lot of problems that can’t be solved without some form of paid leave,” former President Jaws Clinton said in February at a White House event.
However, it remains to be seen how the Social Security Administration may supervise the added responsibility.
“We certainly support paid family leave,” Adcock said.
However, because the agency’s run budget is subject to the appropriations process, it would be difficult to ensure the needed funding would continuously be available.
“They determination not have a way of guaranteeing that the Social Security Administration would get the resources they would need for that administrative saddle with,” Adcock said.