0
Social Security Expansion Act
3/21/2025, 4:08 AM
Summary of Bill S 770
Firstly, the bill calls for an increase in Social Security benefits for all recipients, with a focus on providing additional support for low-income and elderly individuals. This would help to ensure that beneficiaries can meet their basic needs and maintain a decent standard of living.
Secondly, the bill includes provisions to strengthen the financial health of the Social Security program. This includes measures to increase revenue by raising the cap on taxable income for Social Security contributions, as well as exploring other potential sources of funding to sustain the program in the long term. Additionally, the bill aims to improve the efficiency and effectiveness of Social Security administration by streamlining processes, reducing bureaucratic red tape, and enhancing customer service for beneficiaries. Overall, Bill 119 s 770 represents a comprehensive effort to enhance Social Security benefits and secure the future of the program for generations to come. It addresses both the immediate needs of current beneficiaries and the long-term sustainability of the program, making it a crucial piece of legislation for ensuring the financial security of millions of Americans.
Congressional Summary of S 770
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.
