Social Security Expansion Act
Social Security Expansion Act
Plain Language Summary
# Social Security Expansion Act Summary **What the Bill Would Do** The Social Security Expansion Act would increase monthly Social Security benefits for retirees and disabled individuals, while also raising the payroll taxes that fund the program. Specifically, it would adjust how benefits are calculated to provide larger payments, particularly for lower-income earners, and create a new minimum benefit floor. The bill would also improve cost-of-living adjustments to better reflect the actual spending patterns of people over 62, and extend benefits to full-time student children of deceased or disabled workers. **Who It Affects and Key Changes** This bill would primarily benefit current and future Social Security recipients by increasing their monthly payments. To fund these expansions, it would require higher payroll tax contributions from workers and employers.
The changes would especially help low-income retirees and people with disabilities, while also potentially affecting working-age Americans through increased taxes that fund the Social Security system. **Current Status** As of now, the bill (S. 770) is in committee and has not yet been voted on by the full Senate. Senator Bernie Sanders introduced it during the 119th Congress. The bill would need to pass committee review, then receive approval from both the Senate and House before becoming law.
CRS Official Summary
Social Security Expansion ActThis bill increases Social Security benefits, expands Social Security payroll taxes, and makes other changes to the Social Security program.Specifically, the bill changes the way Social Security benefits are calculated by increasing the primary insurance amount applicable to average monthly earnings that fall below a specified amount, and increasing bend points for individuals who become eligible for Social Security after 2025. (Bend points are dollar amounts at which earnings are segmented for the purpose of calculating an individual’s primary insurance amount. The share of an individual’s earnings that are replaced by Social Security decreases at each escalating bend point.)The bill also revises the method of calculating cost-of-living adjustments to account for the spending of individuals over the age of 62 and establishes a new minimum benefit for certain low earners. Further, the bill permits full-time students who are the children of deceased or disabled workers to collect Social Security or railroad retirement child’s benefits until they reach age 22.With respect to taxes, the bill extends payroll taxes on wages, salaries, and self-employment earnings to income above $250,000. (In 2025, the maximum amount subject to Social Security payroll tax is $176,100.) The bill also increases the net investment income tax and subjects active trade or business income to this tax.Finally, the bill combines the existing Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund into a single Social Security Trust Fund.
Latest Action
Read twice and referred to the Committee on Finance.