"The newest Consumer Price Index report from the U.S. Bureau of Labor Statistics, also released Friday, showed that prices for goods and services increased 3% year over year in September. It was the third straight month of rising inflation, and the 3% gain was the highest growth recorded since January 2025. Now in its 90th year, Social Security continues to face an uncertain future as the safety net program is projected to become insolvent by 2033."
"Estimates released last year by the American Enterprise Institute showed that a 21% decline in benefits would double the elderly poverty rate while slashing the median household income for seniors by 14%. Last month, Sen. Ruben Gallego (D-Ariz.) introduced the You Earned It, You Keep It Act. The proposal would eliminate federal taxes on Social Security benefits and expand the payroll tax to include incomes above $250,000."
"President Donald Trump claims he ended taxes on Social Security through the One Big Beautiful Bill Act. That legislation, which passed in July, allows nearly 90% of beneficiaries to no longer pay federal income taxes on their benefits through an increased deduction of $6,000 for taxpayers ages 65 and older. With the federal government shutdown reaching nearly a month in length, Social Security recipients are still receiving their monthly checks."
The yearly COLA is tied to inflation; the Consumer Price Index showed a 3% year-over-year increase in September, the third consecutive month of rising inflation and the highest since January 2025. Social Security, now 90 years old, is projected to become insolvent by 2033, with the SSA estimating a 21% across-the-board benefit cut absent full funding. An AEI analysis indicated a 21% benefit decline would double elderly poverty and reduce seniors' median household income by 14%. Legislative proposals would eliminate federal taxes on benefits and expand payroll taxes above $250,000. Recent legislation increased deductions for older taxpayers, the shutdown has slowed some SSA services while payments continue, and applications rose 13% year over year.
Read at www.housingwire.com
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