New Britain Herald - Esty, Larson seek tax breaks for seniors

News Article

By Scott Whipple

U.S. Reps. Elizabeth Esty and John Larson have introduced a bill they say will cut taxes for Social Security recipients, increase benefits for current and future beneficiaries, and keep the system strong for generations.

Esty, D-5th District, and Larson, D-1st District, have co-authored the Social Security 2100 Act, or H.R. 1391, which they say will reduced taxes for 10 million people.

"Seniors throughout central and northwest Connecticut rely on Social Security to make ends meet," Esty explained. "Congress has a responsibility to protect and strengthen this lifeline program that seniors have earned through hard work. I'm proud to join my friend and colleague, Congressman Larson, in introducing the Social Security 2100 Act."

Esty said it will "rightfully increase benefits for current seniors and keep Social Security strong for our children and grandchildren."

"There is nothing more reliable than Social Security for the middle class," Larson said. "Social Security is not an entitlement; it's the insurance Americans have paid for to fund retirement, disability, and survivor benefits through a lifetime of work."

The Congressman said he is committed to a common-sense approach that will cut taxes and increase benefits for seniors, "and ensure the strength of this program for the rest of the century."

The Social Security 2100 Act, H.R. 1391, provides:

∎A tax cut for over 10 million Social Security recipients by raising the threshold on taxation of benefits.

∎A benefit increase beginning in 2016 for current and new beneficiaries.

∎Protection for low-income workers by raising the minimum benefit from below the poverty line to 25 percent above the poverty line.

∎Long-term protection against inflation for cost-of-living adjustments by adopting the Consumer Price Index-Elderly formula.

Esty stressed that Social Security remains the single most reliable program for middle-class Americans and is expected to pay full benefits over the next two decades.

"With common-sense steps like those in the Social Security 2100 Act, Congress can boost this vital program now and ensure Social Security remains strong," she said.

This year, Social Security benefits will rise by 1.7 percent per the annual cost of living adjustment, affecting more than 58 million beneficiaries. According to the Social Security Administration, monthly benefits for the average retired worker will increase from $1,306 to $1,328, while benefits for the average retired couple will rise from $2,140 to $2,176.

According to the website www.thinkadvisor.com, Social Security law requires annual adjustments based on the Consumer Price Index.

"But, that only looks at the third quarter of the year: the average for July, August and September," said Jamie Hopkins, associate director of the New York Life Center for Retirement Income. "That might necessarily reflect spikes in prices, and if you look at COLAs [Cost of Living Adjustments] from the mid-1980s until now, they all range somewhere between five and a half perfect and zero."

Hopkins warned that "we've not been keeping up with what the elderly really need in the last couple of years. Over the last five years, they've probably lost about five percent of their spending power."

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