What Will Social Security’s Future Look Like if Kamala Harris Wins the 2024 Election?

Written by Rakesh Singh Posted on

Social security provided by the American government has a significant role to play. Social Security offers financial protection for Americans, supporting them through various stages of life.

social security

Although the United States has the largest economy in the world, with a gross domestic product (GDP) of nearly $29 trillion, a significant number of people are still living in the poverty bracket. According to a report published by the US Census Bureau in January this year, the poverty rate was 11.5 per cent. Although the agency underscored the data belonged to 2022, which claimed nearly 38 million of the 335 million population forced to live under the poverty bracket.

What is the poverty rate in US?

The census department highlighted that there was no significant change in either the poverty rate or the number of people living in poverty compared to 2021. However, the official poverty rate for Black individuals saw a decrease from 2021 to 2022. However, a buzz has always been created among American citizens before the Presidential elections. This is the only opportunity when they opt to go with the candidate or party who could offer a great deal in terms of their post-retirement journey. This time, Vice-President Kamala Harris, a Democrat candidate, is in the fray against former President Donald Trump, and a question arises who could offer the best plans for their social security?

What is the Social Security program in the US?

Social security provided by the American government has a significant role to play. Social Security offers financial protection for Americans, supporting them through various stages of life.

The US government manages retirement, disability, survivor, and family benefits, and oversees Medicare enrollment. Additionally, it issues Social Security Numbers, which serve as unique identifiers necessary for employment, financial transactions, and eligibility for certain government services.
The government reports that Social Security, through its retirement, disability, and survivor benefits, is one of the most effective anti-poverty programs in our nation’s history.

Is Social Security program facing a funding shortfall?

The program needs a major chunk of taxes in order to fulfil the basic demands of the senior citizens. According to multiple media reports, Social Security’s funds are expected to last until 2035, but after that, they will only be able to pay 83 per cent of the benefits. The fund used specifically for retirement benefits might run out earlier, in 2033, and will then be able to pay only 79 per cent of those benefits. Earlier in an interview with CNBC, the incumbent President Joe Biden and his predecessor Trump promised not to reduce benefits. However, Trump hinted at possible cuts during the interview.

What is the Democrat’s view on social security?

The National Committee has backed the Democrats’ Social Security proposals, which include imposing extra taxes on individuals earning over $400,000. Harris supports these plans as part of the White House administration. Previously, as a senator from California, she endorsed a similar reform known as the Social Security Expansion Act, which is now championed by Senators Bernie Sanders and Elizabeth Warren, reported CNBC.

In June, Harris tweeted, “President Biden and I will protect Social Security. Donald Trump will not. The contrast is clear.”

Still confused? Here’s a breakdown of the Democrats’ plan

Biden’s Focus: President Biden has highlighted the importance of protecting Social Security in his speeches and budget plans.
Democratic Plan: Democrats want wealthy individuals to pay more into Social Security and also want to expand the benefits people receive.
Republican Opposition: Republicans are against increasing taxes for this purpose.
Need for Reform: To make Social Security sustainable, it may be necessary to implement a mix of changes.

Will Harris make any changes if she becomes US President?

Harris might suggest removing the limit on taxable income for Social Security. Right now, there’s a 12.4 per cent tax on both employers and employees for earnings up to $168,600. Speaking to Nasdaq, Dennis Shirshikov, a professor of finance, economics and accounting at City University of New York (CUNY) forecasted if this limit is increased or removed, it could help make the system more stable beyond 2033.

This is because higher-income people would pay more into the system, which would help keep the funds steady.
Besides raising more money from those who can afford it, removing the cap could also help protect people with lower incomes. While it’s not a sure thing, it could definitely help fund the program.

Harris’s Support for Social Security Measures

Strengthening Social Security: Harris supports efforts to protect and improve Social Security.

Increasing benefits for Low-Income Retirees: She backs proposals to raise benefits for retirees with lower incomes, helping them have a better quality of life.

Adjusting Cost-of-Living Adjustments (COLA): Harris also supports changes to the COLA formula. This formula adjusts benefits to keep up with inflation and the rising costs that seniors face. She wants the adjustments to better reflect the actual expenses that older adults have.

Overall, Harris is focused on making Social Security more supportive and responsive to the needs of retirees.

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