Page 28 - Investment Advisor - December 2021

Gensler: Melissa Lyttle/Bloomberg

NEWS of the YEAR

Washington News

oping to shore up Social Security — at least for a while — more likely to rely on Social Security benefits as they age.”
HHouse Ways and Means Social Security Subcommittee The bill also includes a benefit bump for current and new
Chairman John Larson, D-Ct., introduced on Oct. 26 new beneficiaries equivalent to about 2% of the average benefit, the
legislation, Social Security 2100: A Sacred Trust, and planned fact sheet explains.
to hold a hearing on the bill in Larson’s bill would require mil-
November followed by a markup. lionaires and billionaires to “pay
While the legislation isn’t likely the same rate as everyone else,” the
to pass in 2021, it sets up debate fact sheet states. “Presently, payroll
over how to strengthen Social taxes are not collected on wages
Security benefits and the financing over $142,800.” The bill would
of the program in 2022. “It’s been apply the payroll tax to wages above
50 years, let me repeat that, 50 $400,000 and “would only affect
years since Congress has enhanced the top 0.4% of wage earners.”
Social Security benefits and 38 Mary Johnson, Social Security
years since it has taken any com- and Medicare policy analyst with
prehensive action,” Larson said in The Senior Citizens League, said
introducing the bill. that given the current legislative
The bill adopts the Consumer calendar, passage of the bill this
Price Index for the Elderly as the year isn’t likely. “Social Security
basis of the annual cost-of-living legislation requires consideration
adjustment (COLA), applies the under special rules,” Johnson said.
payroll tax to wages above $400,000, combines the Old-Age “Thus, I suspect that the provisions of this bill would need to
and Survivors and Disability Insurance trust funds, includes be considered separately” from the spending bill now under
a 2% benefits bump, and extends the depletion date (when a debate in Congress.
20% cut to benefits would occur) to 2038. Johnson added, however, that while Larson’s “entire bill”
“Here’s the deal: The majority of Americans, including 75% won’t be wrapped into a spending package, some provisions
of independents, 78% of Democrats and 79% of Republicans could make it in.
feel leaders in Washington do not understand how hard it is for Larson’s bill, “will certainly open debate over how to
Americans to save for retirement,” Larson said during a press strengthen Social Security benefits and the financing of the
conference to introduce the bill. program in 2022,” Johnson added, “and we intend to continue
“People’s skepticism is validated by Congressional inaction,” to work with members of Congress to find the best solutions to
he continued. “This is compounded by the fact that 10,000 improve program solvency and benefits for all beneficiaries.”
baby boomers a day become eligible for Social Security. And The Social Security 2100 bill “not only provides measures
millennials will need Social Security more than any genera- that would boost benefits, and provide better protection from
tion before,” he stated, adding that there are 65 million Social inflation, but it would adjust the income thresholds that sub-
Security recipients. ject Social Security benefits to taxation, among a number of
Larson introduced the legislation along with Majority Whip long overdue changes,” Johnson said.
James Clyburn, D-S.C.; House Ways and Means Chairman
Richard Neal, D-Mass.; Sen. Chris Van Hollen, D-Md.; and
other Ways and Means Democrats. Gary Gensler took the helm of the Securities and Exchange Gensler: Melissa Lyttle/Bloomberg
According to the bill’s fact sheet, adopting a CPI-E formula Commission in April 2021 and brought with him a long to-do
“will help seniors who spend a greater portion of their income list. With Gensler’s arrival, industry officials are holding out
on health care and other necessities. Improved inflation pro- hope that a Bitcoin ETF finally will be approved.
tection will especially help older retirees and widows who are Since taking charge, Gensler has aired his views on every-

26 INVESTMENT ADVISOR DECEMBER 2021 | ThinkAdvisor.com