Social Security Expansion Act
12/6/2023, 4:01 PMSummary of Bill HR 8005
Bill 117 hr 8005, 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 benefit current and future Social Security recipients.One of the main provisions of the bill is an increase in Social Security benefits for all recipients. This increase would be tied to the Consumer Price Index for the Elderly (CPI-E), which takes into account the spending patterns of older Americans. This adjustment is intended to ensure that Social Security benefits keep pace with the rising cost of living for seniors.
Additionally, the bill aims to improve the financial stability of the Social Security program by gradually phasing out the cap on taxable income for Social Security contributions. Currently, individuals only pay Social Security taxes on the first $142,800 of their income. The bill proposes gradually increasing this cap over time, which would generate additional revenue for the program. Furthermore, the bill includes provisions to strengthen the Social Security Disability Insurance (SSDI) program. It would increase benefits for SSDI recipients and streamline the application process to make it easier for individuals with disabilities to access the support they need. Overall, the Social Security Expansion Act seeks to enhance the Social Security program by increasing benefits, ensuring financial stability, and improving support for individuals with disabilities. Supporters of the bill argue that these changes are necessary to ensure the long-term viability of the program and provide adequate support for America's seniors and individuals with disabilities.
Congressional Summary of HR 8005
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 $147,000 for 2022).
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.
