Major Changes Expected for Social Security if Kamala Harris Wins the Election

President Joe Biden’s unexpected withdrawal from the 2024 presidential race has thrust Vice President Kamala Harris into the spotlight. With Biden’s endorsement, Harris is now the leading candidate for the Democratic ticket. Consequently, her policy positions, including those on Social Security, will be scrutinized by the public.

Harris’ detailed stance on Social Security remains somewhat unclear. However, she has generally aligned herself with Biden on various policy issues. As a Democrat, Harris has opposed the cuts to Social Security and Medicare proposed by Republican lawmakers. Here are five potential changes to Social Security that could occur if Harris secures the presidency.

Taxation

Much of the debate surrounding Social Security focuses on the uncertainty of its future. The Old Age and Survivors Insurance (OASI) Trust Fund is projected to run out of money within the next decade, leaving Social Security to rely solely on payroll taxes, which currently cover about 77% of benefits.

To address this shortfall, the Biden-Harris Administration has put forward a four-point plan that targets high-income earners. A key aspect of this plan is to tax earned income above $400,000 while leaving wages between $168,600 and $400,000 untaxed. This plan is expected to be enacted if Harris becomes president.

Tax Bracket	Status 2023	Status 2024
Below $160,200	Taxed	Taxed
$160,200 – $168,600	Taxed	Taxed
$168,600 – $400,000	Untaxed	Untaxed
Above $400,000	Untaxed	Taxed

COLA Formula

Another proposal from the Biden-Harris administration is to change the method used to calculate annual Social Security cost-of-living adjustments (COLAs). Currently, COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The administration favors basing the COLA on the Consumer Price Index for the Elderly (CPI-E), which senior advocates believe better reflects changes in healthcare costs that affect seniors.

Primary Insurance Amount

The Primary Insurance Amount (PIA) is the amount of Social Security benefits a person receives based on the age at which they begin claiming benefits and their average indexed monthly earnings. The Biden-Harris team has proposed increasing the PIA for Americans between the ages of 78 and 82 to help with the escalating costs they face later in life, especially in healthcare.

Special Benefit

Low-wage workers receive a special minimum Social Security benefit that is independent of their total earnings during their working years. For 2024, this special minimum benefit starts at $50.90 per month for individuals with 11 years of Social Security coverage and can go up to $1,066.50 for those with 30 years of coverage.

The Biden-Harris administration proposes increasing the minimum benefit to 125% of the federal poverty level for an individual, which would help reduce the tax on other federal programs.

SSA Funding

For the year 2025, the Biden-Harris administration has announced plans to increase funding for the Social Security Administration (SSA) by 9% over the 2023 enacted level. The goal is to improve customer service at SSA field offices, state disability determination services, retiree teleservice centers, and services for individuals with disabilities and their families.

These proposed changes underscore the administration’s commitment to addressing Social Security’s financial stability and ensuring that it continues to meet the needs of all beneficiaries. As the election approaches, these policy positions are likely to become central topics of discussion and debate.

Harris’ potential presidency could bring significant changes to Social Security. Her proposed policies reflect a commitment to ensuring the program’s sustainability and improving benefits for low-income earners and the elderly. The upcoming election will be crucial in determining the future of these policies.

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