There's a bill pending before the House Social Security Subcommittee that would require that the Social Security Administration "develop online tools to help beneficiaries assess the impact of earnings on eligibility for and benefit amounts of state and Federal programs."
It's a nice idea but I have my doubts that anything developed will be helpful. The problem is that Social Security's work incentives are so incredibly complex that they won't fit easily into an online format. You don't just plug in your earnings for a month to determine the effect upon your benefits. There's far more involved than just how much you earn. Earn $2,000 in the first month you work and there's no effect upon your benefits. Keep working and earn $2,000 a month for twelve months and your benefits probably stop -- and note that I said probably, since there's the separate blind standard, there's the issue of whether it's self-employment which has different standards, there's Impairment Related Work Expenses (IRWE) and there's the question of whether you're performing a made-work or subsidized employment job. Keep working at that some pay rate for a time before stopping and what happens depends upon how long you were working before you stopped. There's no simple way of explaining it because it's quite complex. See the image above from the Subcommittee summary of the bill to get an idea of the complexity.
This isn't a partisan issue. I think that virtually everybody familiar with this subject would agree that we need a much simpler system of work incentives. I think that almost all would agree that even with a much simpler system few Social Security disability benefits recipients will return to work. They're too sick.
The work incentives have gotten so complex because members of Congress over several decades have believed that there must be some way of returning lots of Social Security disability recipients to work. They haven't bothered to study the incentives that already existed. They just kept adding more. Additional incentives or tweaked incentives or better explanation of incentives -- none of it is going to work. The idea that large numbers of disability benefits recipients can ever be forced or enticed to return to work is a fallacy.
The work incentives have gotten so complex because members of Congress over several decades have believed that there must be some way of returning lots of Social Security disability recipients to work. They haven't bothered to study the incentives that already existed. They just kept adding more. Additional incentives or tweaked incentives or better explanation of incentives -- none of it is going to work. The idea that large numbers of disability benefits recipients can ever be forced or enticed to return to work is a fallacy.
