2020 Democratic presidential hopeful Joe Biden’s tax plan for Social Security and Supplemental Security Income is projected to help 1.4 million Americans out of poverty within its first year of implementation, according to an analysis conducted by the Urban Institute.
A key element of Biden’s plan is imposing Social Security taxes on income above $400,000. Under the current guidelines, employees and employers each pay taxes of 6.2 percent on earnings up to $137,700.
Some of the other hallmark features of Biden’s plan include increasing minimum benefits to 125 percent of the federal poverty level, amounting to $15,950 annually in 2020, readjusting how cost-of-living adjustments are determined, and giving credits to caregivers for children younger than 12 or family members with disabilities.
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