Social Security Expansion Act

Summary: Social Security Expansion Act This bill amends title II (Old Age, Survivors, and Disability Insurance) of the Social Security Act to: (1) increase the primary insurance amount for all eligible beneficiaries, beginning in 2023; (2) revise computation of cost-of-living adjustments to use the Consumer Price Index for Elderly Consumers; and (3) increase the special minimum primary insurance amount for lifetime low earners based on years in the workforce. This bill amends the Internal Revenue Code to: (1) apply employment and self-employment taxes to remuneration up to the contribution and benefit base and to remuneration in excess of $250,000, and (2) increase the tax rate on investment gain from 3.8% to 10% and allocate specified amounts of such tax revenue to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Social Security 
Expansion Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Across-the-board benefit increase.
Sec. 3. Computation of cost-of-living increases.
Sec. 4. Increase in minimum benefit for lifetime low earners based on 
                            years in the workforce.
Sec. 5. Payroll tax on remuneration up to contribution and benefit base 
                            and more than $250,000.
Sec. 6. Tax on net earnings from self-employment up to contribution and 
                            benefit base and more than $250,000.
Sec. 7. Tax on investment gain.

SEC. 2. ACROSS-THE-BOARD BENEFIT INCREASE.

    Section 215(a)(1)(B) of the Social Security Act (42 U.S.C. 
415(a)(1)(B)) is amended--
            (1) by redesignating clause (iii) as clause (iv); and
            (2) by inserting after clause (ii) the following new 
        clause:
            ``(iii) For individuals who initially become eligible for 
        old-age or disability insurance benefits, or who die (before 
        becoming eligible for such benefits) in any calendar year after 
        2022, the amount determined under clause (i) of this 
        subparagraph for purposes of subparagraph (A)(i) for such 
        calendar year shall be increased by--
                    ``(I) for calendar year 2023, 1 percent;
                    ``(II) for each of calendar years 2024 through 
                2036, the percent determined under this clause for the 
                preceding year increased by 1 percentage point; and
                    ``(III) for calendar year 2037 and each year 
                thereafter, 15 percent.''.

SEC. 3. COMPUTATION OF COST-OF-LIVING INCREASES.

    (a) In General.--Section 215(i)(1) of the Social Security Act (42 
U.S.C. 415(i)(1)) is amended by adding at the end the following new 
subparagraph:
            ``(H) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published by the 
        Bureau of Labor Statistics of the Department of Labor).''.
    (b) Application to Pre-1979 Law.--
            (1) In general.--Section 215(i)(1) of the Social Security 
        Act as in effect in December 1978, and as applied in certain 
        cases under the provisions of such Act as in effect after 
        December 1978, is amended by adding at the end the following 
        new subparagraph:
            ``(D) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published by the 
        Bureau of Labor Statistics of the Department of Labor).''.
            (2) Conforming change.--Section 215(i)(4) of the Social 
        Security Act (42 U.S.C. 415(i)(4)) is amended by inserting 
        ``and by section 102 of the Social Security Expansion Act'' 
        after ``1986''.
    (c) No Effect on Adjustments Under Other Laws.--Section 215(i) of 
the Social Security Act (42 U.S.C. 415(i)) is amended by adding at the 
end the following:
    ``(6) Any provision of law (other than in this title, title VIII, 
or title XVI) which provides for adjustment of an amount based on a 
change in benefit amounts resulting from a determination made under 
this subsection shall be applied and administered without regard to the 
amendments made by section 102 of the Social Security Expansion Act.''.
    (d) Publication of Consumer Price Index for Elderly Consumers.--The 
Bureau of Labor Statistics of the Department of Labor shall prepare and 
publish the index authorized by section 191 of the Older Americans 
Amendments Act of 1987 (29 U.S.C. 2 note) for each calendar month, 
beginning with July of the calendar year following the calendar year in 
which this Act is enacted, and such index shall be known as the 
``Consumer Price Index for Elderly Consumers''.
    (e) Effective Date.--The amendments made by subsection (a) shall 
apply to determinations made with respect to cost-of-living computation 
quarters (as defined in section 215(i)(1)(B) of the Social Security Act 
(42 U.S.C. 415(i)(1)(B))) ending on or after September 30 of the second 
calendar year following the calendar year in which this Act is enacted.

SEC. 4. INCREASE IN MINIMUM BENEFIT FOR LIFETIME LOW EARNERS BASED ON 
              YEARS IN THE WORKFORCE.

    (a) In General.--Section 215(a)(1) of the Social Security Act (42 
U.S.C. 415(a)(1)) is amended--
            (1) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
    ``(D)(i) Effective with respect to the benefits of individuals who 
become eligible for old-age insurance benefits or disability insurance 
benefits (or die before becoming so eligible) after 2017, no primary 
insurance amount computed under subparagraph (A) may be less than the 
greater of--
            ``(I) the minimum monthly amount computed under 
        subparagraph (C); or
            ``(II) in the case of an individual who has more than 10 
        years of work (as defined in clause (iv)(I)), the alternative 
        minimum amount determined under clause (ii).
    ``(ii)(I) The alternative minimum amount determined under this 
clause is the applicable percentage of \1/12\ of the annual dollar 
amount determined under clause (iii) for the year in which the amount 
is determined.
    ``(II) For purposes of subclause (I), the applicable percentage is 
the percentage specified in connection with the number of years of 
work, as set forth in the following table:

``If the number of years                                 The applicable
  of work is:                                            percentage is:
        11...........................................     6.25 percent 
        12...........................................    12.50 percent 
        13...........................................    18.75 percent 
        14...........................................    25.00 percent 
        15...........................................    31.25 percent 
        16...........................................    37.50 percent 
        17...........................................    43.75 percent 
        18...........................................    50.00 percent 
        19...........................................    56.25 percent 
        20...........................................    62.50 percent 
        21...........................................    68.75 percent 
        22...........................................    75.00 percent 
        23...........................................    81.25 percent 
        24...........................................    87.50 percent 
        25...........................................    93.75 percent 
        26...........................................   100.00 percent 
        27...........................................   106.25 percent 
        28...........................................   112.50 percent 
        29...........................................   118.75 percent 
        30 or more...................................   125.00 percent.
    ``(iii) The annual dollar amount determined under this clause is--
            ``(I) for calendar year 2018, the poverty guideline for 
        2017; and
            ``(II) for any calendar year after 2018, the annual dollar 
        amount for 2017 multiplied by the ratio of--
                    ``(aa) the national average wage index (as defined 
                in section 209(k)(1)) for the second calendar year 
                preceding the calendar year for which the determination 
                is made, to
                    ``(bb) the national average wage index (as so 
                defined) for 2016.
    ``(iv) For purposes of this subparagraph--
            ``(I) the term `year of work' means, with respect to an 
        individual, a year to which 4 quarters of coverage have been 
        credited based on such individual's wages and self-employment 
        income; and
            ``(II) the term `poverty guideline for 2017' means the 
        annual poverty guideline for 2017 (as updated annually in the 
        Federal Register by the Department of Health and Human Services 
        under the authority of section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981) as applicable to a single 
        individual.''.
    (b) Recomputation.--Notwithstanding section 215(f)(1) of the Social 
Security Act, the Commissioner of Social Security shall recompute 
primary insurance amounts originally computed for months prior to 
November 2016 to the extent necessary to carry out the amendments made 
by this section.
    (c) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C. 
409(k)(1)) is amended by inserting ``215(a)(1)(E),'' after 
``215(a)(1)(D),''.

SEC. 5. PAYROLL TAX ON REMUNERATION UP TO CONTRIBUTION AND BENEFIT BASE 
              AND MORE THAN $250,000.

    (a) In General.--Paragraph (1) of section 3121(a) of the Internal 
Revenue Code of 1986 is amended by inserting after ``such calendar 
year.'' the following: ``The preceding sentence shall apply only to 
calendar years for which the contribution and benefit base (as so 
determined) is less than $250,000, and, for such calendar years, only 
to so much of the remuneration paid to such employee by such employer 
with respect to employment as does not exceed $250,000.''.
    (b) Conforming Amendment.--Paragraph (1) of section 3121 of the 
Internal Revenue Code of 1986 is amended by striking ``Act) to'' and 
inserting ``Act), or in excess of $250,000, to''.
    (c) Effective Date.--The amendments made by this section shall 
apply to remuneration paid after December 31, 2017.

SEC. 6. TAX ON NET EARNINGS FROM SELF-EMPLOYMENT UP TO CONTRIBUTION AND 
              BENEFIT BASE AND MORE THAN $250,000.

    (a) In General.--Paragraph (1) of section 1402(b) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) in the case of the tax imposed by section 1401(a), 
        the excess of--
                    ``(A) that part of the net earnings from self-
                employment which is in excess of--
                            ``(i) an amount equal to the contribution 
                        and benefit base (as determined under section 
                        230 of the Social Security Act) which is 
                        effective for the calendar year in which such 
                        taxable year begins, minus
                            ``(ii) the amount of the wages paid to such 
                        individual during such taxable years, over
                    ``(B) that part of the net earnings from self-
                employment which is in excess of the sum of--
                            ``(i) the excess of--
                                    ``(I) the net earning from self-
                                employment reduced by the excess (if 
                                any) of subparagraph (A)(i) over 
                                subparagraph (A)(ii), over
                                    ``(II) $250,000, reduced by such 
                                contribution and benefit base, plus
                            ``(ii) the amount of the wages paid to such 
                        individual during such taxable year in excess 
                        of such contribution and benefit base and not 
                        in excess of $250,000; or''.
    (b) Phaseout.--Subsection (b) of section 1402 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following: 
``Paragraph (1) shall apply only to taxable years beginning in calendar 
years for which the contribution and benefit base (as determined under 
section 230 of the Social Security Act) is less than $250,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to net earnings from self-employment derived, and remuneration 
paid, after December 31, 2017.

SEC. 7. TAX ON INVESTMENT GAIN.

    (a) In General.--Subsection (a) of section 1411 of the Internal 
Revenue Code of 1986 is amended by striking ``3.8 percent'' each place 
it appears and inserting ``10 percent''.
    (b) Conforming Amendment.--The heading for chapter 2A of the 
Internal Revenue Code of 1986 is amended by inserting ``AND SOCIAL 
SECURITY'' after ``MEDICARE''.
    (c) Trust Funds.--
            (1) Federal old-age and survivors insurance trust fund.--
        Subsection (a) of section 201 of the Social Security Act (42 
        U.S.C. 401) is amended--
                    (A) in paragraph (4), by striking the period at the 
                end and inserting ``; and'';
                    (B) by inserting after paragraph (4) the following 
                new paragraph:
    ``(5) 62 percent of the taxes imposed under section 1411 of the 
Internal Revenue Code of 1986, less the amounts specified in clause (3) 
of subsection (b) of this section.''; and
                    (C) in the flush matter at the end--
                            (i) by striking ``clauses (3) and (4)'' 
                        each place it appears and inserting ``clauses 
                        (3), (4), and (5)''; and
                            (ii) by striking ``clauses (1) and (2)'' 
                        and inserting ``clauses (1), (2), and (3)''.
            (2) Federal disability insurance trust fund.--Subsection 
        (b) of such section is amended--
                    (A) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) 9 percent of the taxes imposed under section 1411 of the 
Internal Revenue Code of 1986.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.