Jalynn West business,education,financial,government,information,people,politics,reference,society,software,world Proposed Cuts to Social

Proposed Cuts to Social

June 25, 2024| Linda Smith| 0 Comments| 12:00 am

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You may have heard by now that there are proposed cuts to Social Security and are not sure if this true or not, well, unfortunately, it is actually true.

Social Security is in trouble.

Before diving into the who’s and what’s of these proposed cuts to Social Security it must be stated that something Needs to be done really soon as the program is in big trouble on paper.

Since 2018 the part of the Social Security program that provides retirement benefits (OASI) is and will be running at a loss each and every year.

This means that the amount of benefits that the OASI is providing to retirees is greater than the amount of money that the program brings in.

To provide some clarity on this huuuuge problem:

In 2018, according to the Trustees of Social Security:

The total cost to provide benefits within the OASI program = $853.4 million.
Total revenue for that year = $831.0 million.

There is an obvious shortfall of $22 million and the problem is not getting better, in fact the gap between benefits verse revenue is widening.

By 2022, according to the Trustees, the problem became:

The total cost to provide benefits within the OASI program =. $1,097.5 billion
Total revenue for the year = $1,056.7 billion.

The shortfall grew to $40.8 million in just 4 years and, again, the problem is growing larger annually.

The Trustees of Social Security, in its 2023 Annual Report, is reporting that:

The costs to run the program are going to inflate by over 6.40%
The revenue to provide benefits is only going to grow by 4.90%.

At these rates by 2032 the shortfall for the OASI part of Social Security will be $428.3 billion!

This is why the media is reporting that by 2032 the Social Security program may become insolvent.

Is Social Security really going broke?

What are the current proposed cuts to Social Security?

The Social Security Administration has 9 proposals for cuts to the program which all begin by the end of 2024 and they are:

1st Proposal: Reduce the annual COLA by 1 percentage point.

This option will decrease Social Security benefits for retirees.

2nd Proposal: Reduce the annual COLA by 0.5 percentage point.

Like option #1, this proposal will decrease Social Security benefits for retirees. The only difference is the decrease will be half of Option #1.

3rd Proposal: Compute the COLA using a chained version of the consumer price index for wage and salary workers (CPI-W).

The Social Security cost of living adjustment (COLA) uses the 3^rd Quarter monthly averages of the Consumer Price Index for Workers (CPI-W).
Social Security takes the averages of these 3 months in the 3^rd Quarter and compares them to the previous year’s 3^rd Quarter.
If the average is greater than the previous year, then there will be a COLA for those receiving benefits.
Chained Weighted CPI-W is a more accurate average where certain averages are disregarded if they are not in the norm.
This proposal will decrease benefits going forward.

4th Proposal: Compute the COLA using a chained version of the consumer price index for wage and salary workers (CPI-W) but start it in 2026 instead of 2024.

This proposal will decrease Social Security benefits for retirees, but will start 2 years later.

5th Proposal: Add 1 percentage point to the annual COLA for beneficiaries who have lived past a “specified age”.

It appears that only certain retirees who are a certain age and older will receive a COLA going forward.
This proposal may lower benefits across the board for retirees, but the good news, those retirees who reach the specific age may receive a COLA that would be higher than before.

6th Proposal: Compute the COLA using the Consumer Price Index for the Elderly (CPI-E).

The CPI-E tracks the expenses specifically for Americans who are 62 years of age or older.
Historically this Index is much lower than what the Social Security Administration uses and may lead to lower Social Security benefits for retirees.

Navigating the OASDI Limit 2023: What You NeedNavigating the OASDI Limit 2023: What You Need

May 30, 2024| Sarah Molina| 0 Comment| 12:00 am

Ever wondered why some numbers in finance seem to shift every year? The OASDI limit for 2023 is one such figure that’s crucial yet often misunderstood. For those scratching their heads, OASDI stands for Old-Age, Survivors, and Disability insurance – essentially Social Security. This year brings a fresh twist you’ll definitely want to get cozy with.

The OASDI limit marks the ceiling of your earnings taxed for Social Security purposes. Understanding this number is more than just ticking a box for the sake of it; it’s about smartly mapping out your financial journey ahead. In the same way you manage your credit cards to optimize credit health, understanding the OASDI limit helps optimize your financial health.

Understanding the Social Security Tax Limit 2023

The limit on Social Security tax isn’t something to shrug off. It’s the maximum amount of your earnings that are subject to the Social Security tax each year.

That limit is $160,200. A nice chunk of change, right?

What Is the Social Security Tax Limit?

Let’s break it down. If your earnings hit that $160,200 cap, you’ll pay a maximum of $9,932.40 in Social Security taxes for the year. Your employer will kick in the same amount, for a total of $19,864.80 paid into the system on your behalf.

But if you’re self-employed, you’re on the hook for the whole enchilada – 12.4% of your earnings up to that $160,200 limit. The silver lining? You get to deduct half of that amount on your tax return. Every cloud, my friend. This is akin to how wisely managing your credit can lead to significant savings over time.

Now, let’s say you’re an overachiever and earn more than $160,200. Congrats. But here’s the thing: you don’t pay Social Security taxes on anything over that amount. It’s like hitting the jackpot, tax-wise.

How the Increase Affects Payroll Taxes

So, how does this compare to last year? In 2022, the Social Security tax limit was $147,000. That means the limit jumped by $13,200 for 2023. Not too shabby.

But wait, there’s more. If you’re a high earner, you could pay up to $818 more in Social Security taxes this year compared to 2022. It’s all thanks to that increase in the wage base limit.

So, what does this mean for your paycheck? If you earn $160,200 or more, you’ll see 6.2% taken out for Social Security taxes until you hit that magic number. Then, poof. No more Social Security tax withholdings for the rest of the year. It’s like a little bonus, right? Much like how responsibly using credit cards for monthly expenses can help manage cash flow effectively.

The Vital Role of Attorneys in Combating Sexual Abuse in MarylandThe Vital Role of Attorneys in Combating Sexual Abuse in Maryland

October 6, 2023| Lucille Webb| 0 Comment| 12:00 am

Sexual abuse is a deeply troubling and pervasive issue that affects countless individuals, families, and communities across the United States, including the state of Maryland. Victims of sexual abuse often face significant physical, emotional, and psychological trauma, making it imperative that they receive the necessary support and legal assistance to seek justice. In this blog post, we will explore the importance of attorneys in Maryland when it comes to addressing sexual abuse cases, advocating for survivors, and promoting a safer society.

Maryland Sexual Abuse Attorney Aaron Blank commented. “I am deeply committed to advocating for survivors and ensuring that their Rights are protected. It’s essential for survivors to know that they don’t have to face this difficult journey alone.”

Understanding the Scale of the Problem

Before delving into the role of attorneys, it’s crucial to recognize the prevalence of sexual abuse in Maryland. According to data from the Maryland Coalition Against Sexual Assault (MCASA), there were 2,282 reported cases of sexual abuse in the state in 2019 alone. However, this is just the tip of the iceberg, as many survivors do not report their experiences due to fear, shame, or other barriers.

The Role of Attorneys in Sexual Abuse Cases

Legal expertise: Attorneys play a fundamental role in sexual abuse cases by providing survivors with the legal expertise necessary to navigate the complex legal system. They are well-versed in the laws specific to Maryland, including those related to sexual assault, harassment, and abuse, ensuring that survivors’ rights are protected and upheld.

Advocacy and Support: Attorneys serve as advocates for survivors, offering them emotional support and guidance throughout the legal process. The trauma associated with sexual abuse can be overwhelming, and having a compassionate and knowledgeable attorney can make a significant difference in a survivor’s ability to pursue justice.

Investigative Skills: Attorneys work diligently to gather evidence, interview witnesses, and build a strong case against the perpetrator. They collaborate with law enforcement and other professionals to ensure that the survivor’s story is heard and validated in court.

Legal options: Attorneys help survivors understand their legal options, which may include pursuing criminal charges against the abuser or seeking civil remedies such as a personal injury lawsuit. They explain the pros and cons of each option, empowering survivors to make informed decisions about how they want to proceed.

Protection and Compensation: Attorneys can assist survivors in obtaining protective orders, restraining orders, or other legal measures to ensure their safety. Additionally, they can help survivors seek compensation for medical expenses, therapy, lost wages, and other damages resulting from the abuse.

The Importance of Maryland’s Legal Framework

Maryland has taken significant steps to strengthen its legal framework for addressing sexual abuse. In 2018, the state passed the “Time’s Up” Act, which extended the statute of limitations for filing civil lawsuits related to child sexual abuse. This change allows survivors more time to come forward and seek justice, even if their abuse occurred many years ago.

Moreover, Maryland has stringent laws in place to protect survivors and prosecute perpetrators of sexual abuse. These laws emphasize the importance of preserving evidence, reporting incidents promptly, and offering support services to survivors throughout the legal process.

The Role of Attorneys in Shaping Policy

Attorneys also play a vital role in advocating for policy changes to prevent sexual abuse and support survivors. They work with lawmakers and organizations like MCASA to push for legislative reforms that enhance survivor rights, improve access to justice, and increase awareness about the issue. Through their efforts, attorneys contribute to creating a safer and more supportive environment for survivors in Maryland.

Conclusion

Sexual abuse is a deeply traumatic experience that affects individuals and communities in Maryland and across the nation. Attorneys in Maryland play a critical role in helping survivors seek justice, providing legal expertise, support, and advocacy. By working within the state’s legal framework and advocating for policy changes, attorneys contribute to a safer and more supportive environment for survivors and help prevent sexual abuse from occurring in the future. It is crucial that survivors of sexual abuse in Maryland are aware of their rights and seek legal assistance to hold perpetrators accountable and find healing.