Elizabeth Warren released a plan Thursday to expand Social Security benefits by $200 per month with a payroll tax increase on incomes above $250,000, her latest attempt to court voters who want a larger safety net.
Her proposal would impose a 14.8% tax on annual earnings above $250,000 (or $400,000 for joint filers), split evenly between employers and employees. It would impose a separate 14.8% tax on investment income.
The policy, if enacted, would raise average monthly Social Security benefits from $1,395 to $1,595 if implemented in 2020, according to an analysis by economist Mark Zandi of Moody’s Analytics that was shared by Warren’s campaign.
It would index Social Security benefits to a faster rate of inflation and bolster benefits for widows and widowers and caregivers of children younger than six.
All told, Warren’s plan would extend the solvency of Social Security by about two decades to 2054, Zandi said.