5 questions for U.S. Rep. John Larson on Social Security

In a new episode of the Financial Planning podcast, U.S. Rep. John Larson explains his comprehensive plan for ensuring the solvency of Social Security into the next century.

The Democrat from Connecticut’s 1st District — which spans 700,000 residents in the capital city of Hartford and two neighboring counties — has introduced the Social Security 2100 Act in each session of Congress since 2014. The legislation attracted more than 200 co-sponsors in the last session, though it fell short of passing the House or the Senate. Larson is the chair of the Subcommittee on Social Security on the House Ways and Means Committee.

Social Security

Social Security bills in Congress offer competing proposals

April 29, 2021 9:21 AM

During the podcast conversation with FP Senior Editor Tobias Salinger, he answered five questions about the bill and larger Social Security policy issues:

Rep. John Larson

1. Tens of millions of retirees and pre-retirees are worried about potential automatic cuts to benefits of 20% or more projected to take effect in the mid-2030s. Younger Americans are concerned there will be no Social Security benefits at all for them when they retire. How would the Social Security 2100 Act solve these problems?

2. One provision in the bill that has received attention and support from advocates for older Americans would change the way in which annual cost of living adjustments are calculated. How would that work?

3. In looking at the bill, you’re increasing benefits but you’re also gradually increasing taxes for all employees and employers and making wages above $400,000 a year taxable for Social Security payroll taxes. Is that how you propose to pay for it?

4. The Social Security Administration’s chief actuary found that the legislation would eliminate 114% of the 75-year solvency gap and avoid depleting the trust fund indefinitely. The Congressional Budget Office has a much different estimate, especially after updating its initial score in October 2019. The CBO found that the bill would close about 77% of the solvency gap and add only four years to the life of the trust fund. Why is there so much difference between the two calculations?

5. There’s a new administration in the White House and Democrats control the House and Senate by slim majorities. Still, bills to reform Social Security require 60 votes in the Senate. What are the prospects for passing the Social Security 2100 Act in this Congress?

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