U.S. Sen. Brian Schatz announced Thursday the introduction of major legislation that seeks to expand Social Security benefits while extending the life of the program to 2049.
"The Republicans in the House and the tea party seem bound and determined to undermine Social Security, and I think it’s important for we Democrats in the Senate to stake out a position that not only are we not entertaining cutting Social Security, but we ought to be thinking about ways to enhance the program, both for the beneficiaries and for the trust fund to be healthy over the long run," Schatz told a small group of Social Security beneficiaries gathered for a news conference outside the Federal Building in Honolulu.
Schatz said he chose to co-sponsor the Strengthening Social Security Act of 2013 with U.S. Sen. Tom Harkin, D-Iowa, chairman of the Senate Health, Education, Labor and Pensions Committee, because of the impact it could have on Hawaii residents.
"There are 240,000 residents — 1 in 6 of all people in the state of Hawaii — who receive Social Security benefits, and the average benefit is $14,000 per year," Schatz said. "The last thing we should do is cut Social Security benefits. We ought to be enhancing and strengthening the program rather than undermining it."
Social Security is the sole source of income for 25 percent of Hawaii residents age 65 and older, he said, and the state’s over-65 population is expected to grow to 22 percent in 2030 from 15 percent in 2010.
Schatz said the bill would:
» Change the benefit formula to increase benefits by about $65 per month.
» Change the way the annual cost of living is adjusted.
» Remove the $114,000 wage cap so that payroll taxes apply to every dollar earned.
"If we adopt this legislation, we can strengthen its viability for future generations, and we can also enhance the benefits for the people who need it the most," he said.
U.S. Rep. Colleen Hanabusa said she too is committed to preventing changes to Social Security that would reduce benefits.
"Social Security has not contributed at all to the budget deficit and therefore should not be involved in deficit reduction proposals," she said in an email.
Hanabusa said she also favors eliminating the wage cap.
Schatz said Harkin intends to push for action to be taken on the bill this fall because "this is his last term, and he wants to make a mark in this way."
A recent poll conducted by Public Policy Polling found that 55 percent of 416 Hawaii voters polled said they would support expanding Social Security benefits so that retired 75-year-olds would receive $452 more a year and 85-year-olds would receive $807 more a year. Seventeen percent said they would not support such a proposal, while 28 percent said they were unsure.
The poll, commissioned by the Progressive Change Campaign Committee, also found that 56 percent of 807 Hawaii voters polled would support making wealthy Americans pay the same rate on their income as workers who make $114,000 a year or less.
"Think of it this way: Currently a person making $114,000 worth of income pays the same dollar amount in Social Security tax as someone who makes $3 (million) or $4 million in income, and we just don’t think that’s fair," Schatz said. "We think that’s a problem in the tax code that has to be remedied."
Schatz said work reaching out to Republicans will begin soon but that "it’s fair to say that there is broad bipartisan support among people, among voters, for strengthening and enhancing Social Security."
"Republicans, Democrats and independents alike all understand that Social Security is a lifeline for our seniors," he said.
Representatives of the Hawaii Republican Party could not be reached for comment Thursday.
