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.

Bill 118 s 393, also known as the Social Security Expansion Act, is a piece of legislation introduced in the US Congress with the aim of expanding and strengthening the Social Security program. The bill proposes several key provisions that would impact current and future beneficiaries of Social Security.

One of the main components of the bill is an increase in Social Security benefits for all recipients. This increase would be achieved by adjusting the formula used to calculate benefits, resulting in higher monthly payments for retirees, disabled individuals, and survivors. Additionally, the bill includes a provision to provide a one-time payment to current beneficiaries to help offset the rising cost of living.

Another important aspect of the Social Security Expansion Act is the elimination of the cap on taxable income for Social Security contributions. Currently, individuals only pay Social Security taxes on the first $142,800 of their income. This bill would remove this cap, requiring higher-income earners to contribute more to the program, which would help ensure its long-term sustainability. Furthermore, the bill includes measures to improve the cost-of-living adjustment (COLA) for Social Security benefits, ensuring that payments keep pace with inflation and the rising cost of living. It also aims to strengthen the Social Security Trust Fund by implementing measures to increase revenue and reduce wasteful spending. Overall, the Social Security Expansion Act seeks to enhance and protect the Social Security program for current and future generations. By increasing benefits, eliminating the income cap, and improving the COLA, the bill aims to provide financial security and stability for millions of Americans who rely on Social Security as a vital source of income in their retirement years.