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Social Security Expansion Act
3/26/2025, 8:06 AM
Summary of Bill HR 1700
One of the main provisions 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. Additionally, the bill includes a provision to provide a minimum benefit for low-income workers who have paid into the Social Security system for at least 30 years.
To address the long-term solvency of the Social Security program, the bill proposes gradually increasing the payroll tax rate over a period of 24 years. This increase would be phased in slowly, starting at 7.4% and eventually reaching 8.4% by 2043. The bill also includes measures to ensure that high-income earners pay their fair share into the program, by applying the payroll tax to earnings above $400,000. Furthermore, the bill includes provisions to improve the cost-of-living adjustment (COLA) for Social Security beneficiaries, by using a more accurate measure of inflation to calculate annual increases. This change would help ensure that benefits keep pace with the rising cost of living for retirees. Overall, Bill 119 HR 1700 aims to strengthen the Social Security program by enhancing benefits for retirees and ensuring its long-term financial stability. The bill has garnered bipartisan support in Congress and is seen as a crucial step towards securing the future of Social Security for generations to come.
Congressional Summary of HR 1700
Social Security Expansion Act
This 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.
