Democratic presidential contender Sen. Elizabeth Warren introduced a plan Thursday that would, if she’s elected, amend the Social Security program to provide American seniors with an extra $200 per month.
The Massachusetts lawmaker unveiled the plan on her website, which she said would cost about $150 billion in its first year.
Warren’s plan says stagnant wages and increased housing, healthcare, education and childcare costs are hurting families’ income, and many seniors are relying solely on Social Security benefits.
“Despite the data staring us in the face, Congress hasn’t increased Social Security benefits in nearly 50 years,” the plan states. “When Washington politicians discuss the program, it’s mostly to debate about whether to cut benefits by a lot or a little bit. After signing a $1.5 trillion tax giveaway that primarily helped the rich and big corporations, Donald Trump twice proposed cutting billions from Social Security.”
Warren’s plan would pay for the change with a 15 percent increase for Social Security payroll taxes on wages of $250,000 or more.
“While most American workers contribute to Social Security with every dollar they earn, CEOs and other very high earners contribute to Social Security on only a fraction of their pay,” she said.
“My plan changes that and requires very high earners to contribute a fair share of their income. My plan also closes the so-called ‘Gingrich-Edwards’ loophole to ensure that self-employed workers can’t easily reclassify income to avoid making Social Security contributions.”
The plan also puts the same increase on the top 2 percent of investment income earners in the United States.
The average Social Security recipient presently receives about $16,200 in benefits each year. Warren’s plan would boost the amount to $18,600.
The House is currently weighing a proposal to increase Social Security benefits by raising taxes on middle and high-income wage workers.
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