Social Security Expansion Act

Social Security Expansion Act

This bill increases benefits and certain taxes related to the Social Security program.

Changes to benefits include (1) increasing the primary insurance amount for certain beneficiaries; (2) revising the method of calculating cost-of-living adjustments; (3) establishing a new minimum benefit for certain low earners; and (4) allowing certain children of retired, deceased, or disabled workers to receive benefits until age 22 if they are a full-time student.

Changes to taxes include (1) increasing the net investment income tax and making active trade or business income subject to this tax; and (2) extending payroll taxes on wages, salaries, and self-employment earnings to income above $250,000 (the maximum amount subject to the Social Security payroll tax is currently $160,200 for 2023).

The bill also 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.

The Social Security Expansion Act, also known as Bill 118 hr 1046, is a piece of legislation introduced in the US Congress aimed at expanding and strengthening the Social Security program. The bill proposes several key provisions to enhance the benefits and financial stability of the program.

One of the main components of the bill is an increase in Social Security benefits for current and future beneficiaries. This would be achieved by adjusting the formula used to calculate benefits, resulting in higher monthly payments for retirees and disabled individuals. The bill also includes a provision to provide a minimum benefit level to ensure that all beneficiaries receive a basic level of financial support.

In addition to increasing benefits, the Social Security Expansion Act seeks to improve the long-term financial health of the program. The bill proposes raising the cap on taxable income for Social Security contributions, which would require higher-income individuals to pay more into the system. This change is intended to address the funding shortfall that Social Security is projected to face in the coming years. Furthermore, the bill includes measures to protect and strengthen the Social Security Disability Insurance (SSDI) program. This includes reforms to streamline the application process, improve access to benefits for individuals with disabilities, and ensure that SSDI recipients receive adequate support. Overall, the Social Security Expansion Act aims to bolster the Social Security program by increasing benefits, enhancing financial stability, and improving access to support for retirees, disabled individuals, and their families. The bill is currently under consideration in Congress and has garnered support from advocates for social security reform.