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Social Security Stabilization and Enhancement Act
12/31/2022, 8:59 AM
Summary of Bill HR 5215
One key provision of the bill is the gradual increase of the payroll tax rate over a period of several years. This increase is intended to ensure that the Social Security program remains adequately funded to meet the needs of current and future beneficiaries. Additionally, the bill includes measures to enhance the benefits provided by Social Security, such as increasing the cost-of-living adjustments for recipients and expanding eligibility for certain benefits.
Furthermore, the bill aims to address the issue of income inequality by adjusting the way Social Security benefits are calculated for higher-income individuals. This change is intended to ensure that the program remains sustainable while also providing adequate support for those who rely on it the most. Overall, the Social Security Stabilization and Enhancement Act seeks to strengthen the Social Security program for the long term and ensure that it continues to provide vital support to Americans in their retirement years. The bill is currently under review in Congress, where lawmakers are considering its potential impact and feasibility.
Congressional Summary of HR 5215
Social Security Stabilization and Enhancement 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 increasing the net investment income tax for certain taxpayers and extending payroll taxes on wages, salaries, and self-employment earnings to income above $250,000. Under current law, the maximum amount subject to the Social Security payroll tax is $142,800 for 2021.
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.
