The Big Changes Awaiting Social Security If Kamala Harris Wins the Elections
President Joe Biden’s surprising withdrawal from the 2024 presidential race has elevated Vice President Kamala Harris as the leading Democratic candidate, with Biden’s endorsement solidifying her position. As Harris steps into the spotlight, her policy stances, particularly on Social Security, are coming under scrutiny. Here’s a look at five potential changes to Social Security that could occur under a Harris presidency:
Taxing Higher Incomes
One of the central issues facing Social Security is its long-term funding. The Old Age and Survivors Insurance (OASI) Trust Fund is projected to deplete within the next decade, leaving Social Security reliant on payroll taxes, which currently cover about 77% of benefits. To address this, the Biden-Harris administration has proposed a plan that targets high-income earners. This plan involves taxing earned income above $400,000, while wages between $168,600 and $400,000 remain untaxed. For context, the wage base for 2024 is set at $168,600, up from $160,200 in 2023. This approach is anticipated to be pursued if Harris becomes president.
Revising the COLA Formula
Another significant change under a Harris presidency could involve altering the calculation method for annual Social Security cost-of-living adjustments (COLAs). Currently, COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). However, Harris is expected to support transitioning to the Consumer Price Index for the Elderly (CPI-E), which senior advocates argue better reflects the health care cost changes that impact older adults.
Increasing the Primary Insurance Amount (PIA)
The Primary Insurance Amount (PIA) determines the Social Security benefits a person receives based on their age and average indexed monthly earnings. The Biden-Harris administration proposes raising the PIA for individuals between the ages of 78 and 82. This adjustment aims to address the rising costs that seniors face later in life, particularly concerning healthcare expenses.
Raising the Special Minimum Social Security Benefit
For lifetime low-wage workers, the special minimum Social Security benefit is designed to ensure a basic level of support regardless of their total earnings. For 2024, this benefit ranges from $50.90 per month for those with 11 years of coverage to $1,066.50 for those with 30 years of coverage. The Biden-Harris administration suggests increasing this minimum benefit to 125% of the federal poverty level for individuals, which would provide additional financial relief and reduce reliance on other federal programs.
Boosting SSA Funding
In 2025, the Biden-Harris administration plans to increase funding for the Social Security Administration (SSA) by 9% over the 2023 levels. This funding boost is aimed at enhancing customer service at SSA field offices, state disability determination services, retiree teleservice centers, and services for individuals with disabilities and their families.
These proposed changes reflect the administration’s commitment to bolstering Social Security’s financial health and ensuring it continues to serve beneficiaries effectively. As the election draws near, Harris’ stance on these issues will likely become a focal point of discussion and debate.
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