I 

115TH CONGRESS 

1ST SESSION H. R. 1114 

To enhance Social Security benefits and ensure the long-term solvency of 

the Social Security program. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 16, 2017 

Mr. DEFAZIO (for himself, Mr. CA ́RDENAS, Ms. CLARKE of New York, Mr. 

COHEN, Mr. CONYERS, Mr. ELLISON, Mr. AL GREEN of Texas, Mr. GRIJALVA, Ms. NORTON, Ms. KAPTUR, Mr. KEATING, Ms. JAYAPAL, Mr. 

KHANNA, Ms. LEE, Mr. MCGOVERN, Ms. MOORE, Mrs. NAPOLITANO, Mr. 

POCAN, Mr. RASKIN, Ms. SCHAKOWSKY, Mr. SCOTT of Virginia, Ms. 

SHEA-PORTER, Ms. SLAUGHTER, and Mr. TONKO) introduced the following bill; which was referred to the Committee on Ways and Means, 

and in addition to the Committee on Education and the Workforce, for 

a period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To enhance Social Security benefits and ensure the longterm solvency of the Social Security program. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Social Security Expansion Act’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents of 

2 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. 

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

4 Section 215(a)(1)(B) of the Social Security Act (42 

5 U.S.C. 415(a)(1)(B)) is amended— 

6 (1) by redesignating clause (iii) as clause (iv); 

7 and 

8 (2) by inserting after clause (ii) the following 

9 new clause: 

10 ‘‘(iii) For individuals who initially become eligi11 ble for old-age or disability insurance benefits, or 

12 who die (before becoming eligible for such benefits) 

13 in any calendar year after 2022, the amount deter14 mined under clause (i) of this subparagraph for pur15 poses of subparagraph (A)(i) for such calendar year 

16 shall be increased by— 

17 ‘‘(I) for calendar year 2023, 1 percent; 

18 ‘‘(II) for each of calendar years 2024 

19 through 2036, the percent determined under 


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1 this clause for the preceding year increased by 

2 1 percentage point; and 

3 ‘‘(III) for calendar year 2037 and each 

4 year thereafter, 15 percent.’’. 

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

6 (a) IN GENERAL.—Section 215(i)(1) of the Social Se7 curity Act (42 U.S.C. 415(i)(1)) is amended by adding 

8 at the end the following new subparagraph: 

9 ‘‘(H) the term ‘Consumer Price Index’ means 

10 the Consumer Price Index for Elderly Consumers 

11 (CPI–E, as published by the Bureau of Labor Sta12 tistics of the Department of Labor).’’. 

13 (b) APPLICATION TO PRE-1979 LAW.— 

14 (1) IN GENERAL.—Section 215(i)(1) of the So15 cial Security Act as in effect in December 1978, and 

16 as applied in certain cases under the provisions of 

17 such Act as in effect after December 1978, is 

18 amended by adding at the end the following new 

19 subparagraph: 

20 ‘‘(D) the term ‘Consumer Price Index’ means 

21 the Consumer Price Index for Elderly Consumers 

22 (CPI–E, as published by the Bureau of Labor Sta23 tistics of the Department of Labor).’’. 

24 (2) CONFORMING CHANGE.—Section 215(i)(4) 

25 of the Social Security Act (42 U.S.C. 415(i)(4)) is 


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1 amended by inserting ‘‘and by section 102 of the So2 cial Security Expansion Act’’ after ‘‘1986’’. 

3 (c) NO EFFECT ON ADJUSTMENTS UNDER OTHER

4 LAWS.—Section 215(i) of the Social Security Act (42 

5 U.S.C. 415(i)) is amended by adding at the end the fol6 lowing: 

7 ‘‘(6) Any provision of law (other than in this title, 

8 title VIII, or title XVI) which provides for adjustment of 

9 an amount based on a change in benefit amounts resulting 

10 from a determination made under this subsection shall be 

11 applied and administered without regard to the amend12 ments made by section 102 of the Social Security Expan13 sion Act.’’. 

14 (d) PUBLICATION OF CONSUMER PRICE INDEX FOR

15 ELDERLY CONSUMERS.—The Bureau of Labor Statistics 

16 of the Department of Labor shall prepare and publish the 

17 index authorized by section 191 of the Older Americans 

18 Amendments Act of 1987 (29 U.S.C. 2 note) for each cal19 endar month, beginning with July of the calendar year fol20 lowing the calendar year in which this Act is enacted, and 

21 such index shall be known as the ‘‘Consumer Price Index 

22 for Elderly Consumers’’. 

23 (e) EFFECTIVE DATE.—The amendments made by 

24 subsection (a) shall apply to determinations made with re25 spect to cost-of-living computation quarters (as defined in 


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1 section 215(i)(1)(B) of the Social Security Act (42 U.S.C. 

2 415(i)(1)(B))) ending on or after September 30 of the sec3 ond calendar year following the calendar year in which this 

4 Act is enacted. 

5 SEC. 4. INCREASE IN MINIMUM BENEFIT FOR LIFETIME 

6 LOW EARNERS BASED ON YEARS IN THE 

7 WORKFORCE. 

8 (a) IN GENERAL.—Section 215(a)(1) of the Social 

9 Security Act (42 U.S.C. 415(a)(1)) is amended— 

10 (1) by redesignating subparagraph (D) as sub11 paragraph (E); and 

12 (2) by inserting after subparagraph (C) the fol13 lowing new subparagraph: 

14 ‘‘(D)(i) Effective with respect to the benefits of indi15 viduals who become eligible for old-age insurance benefits 

16 or disability insurance benefits (or die before becoming so 

17 eligible) after 2017, no primary insurance amount com18 puted under subparagraph (A) may be less than the great19 er of— 

20 ‘‘(I) the minimum monthly amount computed 

21 under subparagraph (C); or 

22 ‘‘(II) in the case of an individual who has more 

23 than 10 years of work (as defined in clause (iv)(I)), 

24 the alternative minimum amount determined under 

25 clause (ii). 


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1 ‘‘(ii)(I) The alternative minimum amount determined 

under this clause is the applicable percentage of 1 2 ⁄12 of 

3 the annual dollar amount determined under clause (iii) for 

4 the year in which the amount is determined. 

5 ‘‘(II) For purposes of subclause (I), the applicable 

6 percentage is the percentage specified in connection with 

7 the number of years of work, as set forth in the following 

8 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. 

9 ‘‘(iii) The annual dollar amount determined under 

10 this clause is— 

11 ‘‘(I) for calendar year 2018, the poverty guide12 line for 2017; and 

13 ‘‘(II) for any calendar year after 2018, the an14 nual dollar amount for 2018 multiplied by the ratio 

15 of— 


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1 ‘‘(aa) the national average wage index (as 

2 defined in section 209(k)(1)) for the second cal3 endar year preceding the calendar year for 

4 which the determination is made, to 

5 ‘‘(bb) the national average wage index (as 

6 so defined) for 2016. 

7 ‘‘(iv) For purposes of this subparagraph— 

8 ‘‘(I) the term ‘year of work’ means, with re9 spect to an individual, a year to which 4 quarters of 

10 coverage have been credited based on such individ11 ual’s wages and self-employment income; and 

12 ‘‘(II) the term ‘poverty guideline for 2017’ 

13 means the annual poverty guideline for 2015 (as up14 dated annually in the Federal Register by the De15 partment of Health and Human Services under the 

16 authority of section 673(2) of the Omnibus Budget 

17 Reconciliation Act of 1981) as applicable to a single 

18 individual.’’. 

19 (b) RECOMPUTATION.—Notwithstanding section 

20 215(f)(1) of the Social Security Act, the Commissioner of 

21 Social Security shall recompute primary insurance 

22 amounts originally computed for months prior to Novem23 ber 2016 to the extent necessary to carry out the amend24 ments made by this section. 


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1 (c) CONFORMING AMENDMENT.—Section 209(k)(1) 

2 of such Act (42 U.S.C. 409(k)(1)) is amended by inserting 

3 ‘‘215(a)(1)(E),’’ after ‘‘215(a)(1)(D),’’. 

4 SEC. 5. PAYROLL TAX ON REMUNERATION UP TO CON5 TRIBUTION AND BENEFIT BASE AND MORE 

6 THAN $250,000. 

7 (a) IN GENERAL.—Paragraph (1) of section 3121(a) 

8 of the Internal Revenue Code of 1986 is amended by in9 serting after ‘‘such calendar year.’’ the following: ‘‘The 

10 preceding sentence shall apply only to calendar years for 

11 which the contribution and benefit base (as so determined) 

12 is less than $250,000, and, for such calendar years, only 

13 to so much of the remuneration paid to such employee 

14 by such employer with respect to employment as does not 

15 exceed $250,000.’’. 

16 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

17 section 3121 of the Internal Revenue Code of 1986 is 

18 amended by striking ‘‘Act) to’’ and inserting ‘‘Act), or in 

19 excess of $250,000, to’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to remuneration paid after Decem22 ber 31, 2017. 


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1 SEC. 6. TAX ON NET EARNINGS FROM SELF-EMPLOYMENT 

2 UP TO CONTRIBUTION AND BENEFIT BASE 

3 AND MORE THAN $250,000. 

4 (a) IN GENERAL.—Paragraph (1) of section 1402(b) 

5 of the Internal Revenue Code of 1986 is amended to read 

6 as follows: 

7 ‘‘(1) in the case of the tax imposed by section 

8 1401(a), the excess of— 

9 ‘‘(A) that part of the net earnings from 

10 self-employment which is in excess of— 

11 ‘‘(i) an amount equal to the contribu12 tion and benefit base (as determined under 

13 section 230 of the Social Security Act) 

14 which is effective for the calendar year in 

15 which such taxable year begins, minus 

16 ‘‘(ii) the amount of the wages paid to 

17 such individual during such taxable years, 

18 over 

19 ‘‘(B) that part of the net earnings from 

20 self-employment which is in excess of the sum 

21 of— 

22 ‘‘(i) the excess of— 

23 ‘‘(I) the net earnings from self24 employment reduced by the excess (if 

25 any) of subparagraph (A)(i) over sub26 paragraph (A)(ii), over 


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1 ‘‘(II) $250,000, reduced by such 

2 contribution and benefit base, plus 

3 ‘‘(ii) the amount of the wages paid to 

4 such individual during such taxable year in 

5 excess of such contribution and benefit 

6 base and not in excess of $250,000; or’’. 

7 (b) PHASEOUT.—Subsection (b) of section 1402 of 

8 the Internal Revenue Code of 1986 is amended by adding 

9 at the end the following: ‘‘Paragraph (1) shall apply only 

10 to taxable years beginning in calendar years for which the 

11 contribution and benefit base (as determined under section 

12 230 of the Social Security Act) is less than $250,000.’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to net earnings from self-employ15 ment derived, and remuneration paid, after December 31, 

16 2017. 

17 SEC. 7. TAX ON INVESTMENT GAIN. 

18 (a) IN GENERAL.—Subsection (a) of section 1411 of 

19 the Internal Revenue Code of 1986 is amended by striking 

20 ‘‘3.8 percent’’ each place it appears and inserting ‘‘10 per21 cent’’. 

22 (b) CONFORMING AMENDMENT.—The heading for 

23 chapter 2A of the Internal Revenue Code of 1986 is 

24 amended by inserting ‘‘AND SOCIAL SECURITY’’ 

25 after ‘‘MEDICARE’’. 


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1 (c) TRUST FUNDS.— 

2 (1) FEDERAL OLD-AGE AND SURVIVORS INSUR3 ANCE TRUST FUND.—Subsection (a) of section 201 

4 of the Social Security Act (42 U.S.C. 401) is amend5 ed— 

6 (A) in paragraph (4), by striking the pe7 riod at the end and inserting ‘‘; and’’; 

8 (B) by inserting after paragraph (4) the 

9 following new paragraph: 

10 ‘‘(5) 62 percent of the taxes imposed under section 

11 1411 of the Internal Revenue Code of 1986, less the 

12 amounts specified in clause (3) of subsection (b) of this 

13 section.’’; and 

14 (C) in the flush matter at the end— 

15 (i) by striking ‘‘clauses (3) and (4)’’ 

16 each place it appears and inserting 

17 ‘‘clauses (3), (4), and (5)’’; and 

18 (ii) by striking ‘‘clauses (1) and (2)’’ 

19 and inserting ‘‘clauses (1), (2), and (3)’’. 

20 (2) FEDERAL DISABILITY INSURANCE TRUST

21 FUND.—Subsection (b) of such section is amended— 

22 (A) in paragraph (2), by striking the pe23 riod at the end and inserting ‘‘; and’’; and 

24 (B) by adding at the end the following new 

25 paragraph: 


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1 ‘‘(3) 9 percent of the taxes imposed under section 

2 1411 of the Internal Revenue Code of 1986.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2017. 

Æ 


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