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Biden’s principles

To be sure, Biden’s budget includes several principles aimed at protecting and strengthening Social Security.

The first principle is “no benefit cuts.” The president has made it clear that he is firmly against any reductions in benefits and rejects proposals for the privatization of Social Security.

Moreover, Biden seeks to extend the program's solvency by requiring the highest-income Americans to contribute their fair share of Social Security taxes. This approach is built on the belief that the financial burden of supporting Social Security should be more equitably distributed, particularly given that middle-class and lower-income Americans currently pay Social Security taxes on all of their earnings, while higher-income Americans do not on their entire income. Right now, the Social Security wage base — the maximum amount of earnings that are subject to the Social Security payroll tax in a given year — stands at $168,600.

Additionally, Biden's budget aims to improve financial security for seniors and people with disabilities by supporting efforts to enhance both Social Security and Supplemental Security Income benefits for those most in need. The plan also includes investing in the Social Security Administration (SSA) itself, by increasing staffing and modernizing information technology to ensure that Americans can more easily access the benefits they have earned.

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About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

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