Senator Sanders Moves to Request the White House to Oppose Social Security Budget Change Deal

In his most recent effort to support Social Security, Senator, Bernie Sanders called on President Barack Obama to request him not to change the way the Social Security benefits are calculated.

Currently, the White House is working with the congressional Republicans in an attempt to reach a “grand bargain” on the budget to reduce federal expenditures. Unfortunately, Social Security benefits are among the targets of the said cost cutting effort.

Sanders stressed out that the budget amendment opposes a switch to the so-called “chained consumer price index” or also referred to as chained CPI. Sanders warned that the amendment would trim cost-of-living changes by changing the way inflation is measured in calculating Social Security payments to the seniors, disabled and the survivors.

In addition, Sanders cited that the adoption of the chained CPI formula would significantly reduce Social Security benefits for 55 million Americans and more than 3.2 million disabled veterans who rely on disability benefit that they receive from the Department of Veterans Affairs for their daily life expenses.

So far, in a statement released by the congressional Republicans, it was said that the changes to the federal programs are a prior condition for any compromise with regards to the country’s debt reduction efforts. In fact, the President has already declared that he is willing to take on his fellow Democrats in seeking such amendment.

Incidentally, this recent effort from the Vermont senator follows his recent attempt to strengthen the Social Security for the benefit of the future generations. In fact many of his fellow senators supported the bill that he recently introduced to protect the federal program from insolvency, detailed by a Los Angeles long term disability lawyer herein in his previous blog post.

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Two U.S. Senators Join Forces to Strengthen Social Security

In an effort to strengthen the Social Security for the future generations, two U.S. Senators joined forces to introduce a bill that would prevent the federal program’s fund from insolvency.

Through their official web pages, senators Bernie Sanders and Sheldon Whitehouse spread the word that they are currently working out on a new bill which they called Keeping Our Social Security Promise Act. The bill was said to ensure that the Social Security would remain solvent for the next 50 years by requiring the wealthiest Americans to pay fair taxes as the poor citizens do.

As we all know, experts speculated that the said federal fund is likely to drain by 2033. Unfortunately, under the current law, the federal program is being funded by payroll taxes coming from wage earners whose income are up to $113,700.00. Wage earners whose income is above that said verge are exempted from the Social Security Tax.  

Obviously, all or most of middle-class workers’ income is subjected to Social Security Tax while the highest earning citizens’ income is exempted from the tax. That is the sad truth.

Now, the new proposed law would abolish the exemption for the Social Security tax income above $250,000.00. Meanwhile, income between $113,700.00 and $250,000.00 would still remain exempted from the tax.

So far, following its introduction, the bill has gained the support of several other U.S. senators like the Senate Majority Leader Harry Reid, Sen. Patrick Leahy, Sen. Barbara Boxer, Sen. Amy Klobuchar, Sen. Al Franken and Sen. Richard Blumenthal.

Consequently, a Los Angeles disability Lawyer lauded the two senators who have been an advocate of protecting the Social Security for years. In fact, in his previous effort, Sen. Sanders has issued a petition to oppose Social Security and Medicare cuts which was also supported by many.

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What You Need to Know about Divorce’s Role in Claiming For Social Security Benefits

Divorce plays a significant role in claiming Social Security Disability retirement benefits. Unfortunately, not everyone qualifies as a divorced spouse for the Social Security benefits. Therefore, a Los Angeles social security disability lawyer provided several facts you need to know about the role of divorce in claiming benefits.

Fortunately, a divorced spouse is entitled for up to one half of the ex-spouse’s full retirement benefits. In addition, it can also be possible for the estranged spouse to switch from the former spouse benefit later to a higher benefit based on one’s own work history.

In order to qualify for your ex-spouse’s retirement benefits you must qualify under the Social Security Administration’s strict requirements as follow:

Basically, as a claimant, you must be 62 years of age or older. Also, your marriage must have lasted at least a decade or longer.

Moreover, following the divorce, you must not be married. However, the agency provided a little consideration to those who remarried following the divorce. A former spouse can still be once again entitled for an ex-spouse’s benefits once the recent marriage ended by death, divorce, or annulment.

Meanwhile, in case that your ex-spouse did not apply for Social Security Retirement benefits despite his or her being entitled for the claim, you may still qualify for the benefit if you have been divorced for at least a couple of years.

However, the benefit that you are entitled to receive based on your own work history should be less than the benefit that you would receive based on your ex-spouse’s work history.

Furthermore, any benefits that you will receive will not in any way affect the amount of benefits that your former spouse or his or her current partner in life may receive. In fact, your former spouse could never even be aware that you are claiming benefits out of his or her credit. Also, if your ex-spouse delays receiving his or her benefits, your benefits will not include any delayed benefit credits that he or she may receive.

Another important thing that you must be aware as a former spouse is that you can apply for a surviving spouse benefits at a younger age like 60 instead of 62, or if disabled, between age 50 and 60.

Apparently, taking some time to explore such social security’s guidelines is worth spending the time, so be very diligent.

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Common Social Security Myths Not to Believe Revealed

Whether you are or not a recipient of the Social Security benefits, there is no doubt that you have already heard the common rumors about it.

Nevertheless, although such rumors are already rampant in the American society, financial experts say that such common myths are false.

Recently, the entire society was shaken up by the alarming news stories about the upcoming expected date of exhaustion of the federal funds. However, many experts doubted it although the government reported that the Social Security program paid out more than the amount of taxes it received in 2012.

In fact, in a statement released by Jordan Goodman, president of Jordan Goodman Financial Communications, that was quoted below, he said:

“By that point, payroll taxes will flow into the fund and it will be sufficient to pay only 75% of its costs.. So if nothing changes, it will go broke. But it’s not about to happen tomorrow or next year.”

Apparently, in his point of view, he doesn’t believe that the federal government will let the exhaustion of federal funds to occur, not next year or in the next ten years. He is quite assured that lawmakers will definitely find a way to sustain the program since a lot of people rely on it.

Goodman further revealed other common social security myths, which according to him should not be believed.

Take social security as soon as you are eligible.

Unfortunately, taking Social Security fund as soon as a recipient is eligible is another reason the fund is going bankrupt in the next couple of decades. Goodman suggests that it is actually financially better to wait until you get 70 than taking it earlier.

Paying Social Security Taxes has NO limit

People tend to confuse Social Security taxes with Medicare taxes. Therefore, Goodman explained that tax payers only pay Social Security taxes on up to $113,700 income each year while when it comes to Medicare taxes, you can make $10 million and still pay it.

The Cost of Living Adjustment (COLA) is directly tied to the Consumer Price Index (CPI)

Goodman noted that although the CPI influences the adjustment amount, it doesn’t necessarily mean that it is always an exact dollar-for-dollar match.

Meanwhile, in their own perspective, several Los Angeles social security claim lawyers agree with Goodman’s point of view not only because he is an expert in the industry but because based on their own experiences, they all ended up in the same level of thinking.

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