WASHINGTON – Social Security recipients will get a modest 1.3% cost-of living-increase in 2021, but that might be small comfort amid worries about the coronavirus and its consequences for older people.
The economic fallout from the virus has reduced tax collections for Social Security and Medicare, likely worsening their long-term financial condition.
The former vice president would raise Social Security taxes by applying the payroll tax to earnings above $400,000 a year.
That amount generally increases, so at least some of any additional Social Security raise goes to health care premiums.
That prompted Congress to pass recent election-year legislation that limits next year’s premium increase but gradually collects the full amount later on under a repayment mechanism.