II 

114TH CONGRESS 

1ST SESSION S. 731 

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

the Social Security program. 

IN THE SENATE OF THE UNITED STATES 

MARCH 12, 2015 

Mr. SANDERS introduced the following bill; which was read twice and referred 

to the Committee on Finance 

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’’. 

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

7 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. 


emcdonald on DSK67QTVN1PROD with BILLS
2 

•S 731 IS

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. 

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

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

3 U.S.C. 415(a)(1)(B)) is amended— 

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

5 and 

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

7 new clause: 

8 ‘‘(iii) For individuals who initially become eligi9 ble for old-age or disability insurance benefits, or 

10 who die (before becoming eligible for such benefits) 

11 in any calendar year after 2020, the amount deter12 mined under clause (i) of this subparagraph for pur13 poses of subparagraph (A)(i) for such calendar year 

14 shall be increased by— 

15 ‘‘(I) for calendar year 2021, 1 percent; 

16 ‘‘(II) for each of calendar years 2022 

17 through 2034, the percent determined under 

18 this clause for the preceding year increased by 

19 1 percentage point; and 

20 ‘‘(III) for calendar year 2035 and each 

21 year thereafter, 15 percent.’’. 


emcdonald on DSK67QTVN1PROD with BILLS
3 

•S 731 IS

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

2 (a) IN GENERAL.—Section 215(i)(1) of the Social Se3 curity Act (42 U.S.C. 415(i)(1)) is amended by adding 

4 at the end the following new subparagraph: 

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

6 the Consumer Price Index for Elderly Consumers 

7 (CPI–E, as published by the Bureau of Labor Sta8 tistics of the Department of Labor).’’. 

9 (b) APPLICATION TO PRE-1979 LAW.— 

10 (1) IN GENERAL.—Section 215(i)(1) of the So11 cial Security Act as in effect in December 1978, and 

12 as applied in certain cases under the provisions of 

13 such Act as in effect after December 1978, is 

14 amended by adding at the end the following new 

15 subparagraph: 

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

17 the Consumer Price Index for Elderly Consumers 

18 (CPI–E, as published by the Bureau of Labor Sta19 tistics of the Department of Labor).’’. 

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

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

22 amended by inserting ‘‘and by section 102 of the So23 cial Security Expansion Act’’ after ‘‘1986’’. 

24 (c) NO EFFECT ON ADJUSTMENTS UNDER OTHER

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


emcdonald on DSK67QTVN1PROD with BILLS
4 

•S 731 IS

1 U.S.C. 415(i)) is amended by adding at the end the fol2 lowing: 

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

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

5 an amount based on a change in benefit amounts resulting 

6 from a determination made under this subsection shall be 

7 applied and administered without regard to the amend8 ments made by section 102 of the Social Security Expan9 sion Act.’’. 

10 (d) PUBLICATION OF CONSUMER PRICE INDEX FOR

11 ELDERLY CONSUMERS.—The Bureau of Labor Statistics 

12 of the Department of Labor shall prepare and publish the 

13 index authorized by section 191 of the Older Americans 

14 Amendments Act of 1987 (29 U.S.C. 2 note) for each cal15 endar month, beginning with July of the calendar year fol16 lowing the calendar year in which this Act is enacted, and 

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

18 for Elderly Consumers’’. 

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

20 subsection (a) shall apply to determinations made with re21 spect to cost-of-living computation quarters (as defined in 

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

23 415(i)(1)(B))) ending on or after September 30 of the sec24 ond calendar year following the calendar year in which this 

25 Act is enacted. 


emcdonald on DSK67QTVN1PROD with BILLS
5 

•S 731 IS

1 SEC. 4. INCREASE IN MINIMUM BENEFIT FOR LIFETIME 

2 LOW EARNERS BASED ON YEARS IN THE 

3 WORKFORCE. 

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

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

6 (1) by redesignating subparagraph (D) as sub7 paragraph (E); and 

8 (2) by inserting after subparagraph (C) the fol9 lowing new subparagraph: 

10 ‘‘(D)(i) Effective with respect to the benefits of indi11 viduals who become eligible for old-age insurance benefits 

12 or disability insurance benefits (or die before becoming so 

13 eligible) after 2015, no primary insurance amount com14 puted under subparagraph (A) may be less than the great15 er of— 

16 ‘‘(I) the minimum monthly amount computed 

17 under subparagraph (C); or 

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

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

20 the alternative minimum amount determined under 

21 clause (ii). 

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

under this clause is the applicable percentage of 1 23 ⁄12 of 

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

25 the year in which the amount is determined. 


emcdonald on DSK67QTVN1PROD with BILLS
6 

•S 731 IS

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

2 percentage is the percentage specified in connection with 

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

4 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. 

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

6 this clause is— 

7 ‘‘(I) for calendar year 2016, the poverty guide8 line for 2015; and 

9 ‘‘(II) for any calendar year after 2016, the an10 nual dollar amount for 2016 multiplied by the ratio 

11 of— 

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

13 defined in section 209(k)(1)) for the second cal14 endar year preceding the calendar year for 

15 which the determination is made, to 


emcdonald on DSK67QTVN1PROD with BILLS
7 

•S 731 IS

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

2 so defined) for 2014. 

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

4 ‘‘(I) the term ‘year of work’ means, with re5 spect to an individual, a year to which 4 quarters of 

6 coverage have been credited based on such individ7 ual’s wages and self-employment income; and 

8 ‘‘(II) the term ‘poverty guideline for 2015’ 

9 means the annual poverty guideline for 2015 (as up10 dated annually in the Federal Register by the De11 partment of Health and Human Services under the 

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

13 Reconciliation Act of 1981) as applicable to a single 

14 individual.’’. 

15 (b) RECOMPUTATION.—Notwithstanding section 

16 215(f)(1) of the Social Security Act, the Commissioner of 

17 Social Security shall recompute primary insurance 

18 amounts originally computed for months prior to Novem19 ber 2014 to the extent necessary to carry out the amend20 ments made by this section. 

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

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

23 ‘‘215(a)(1)(E),’’ after ‘‘215(a)(1)(D),’’. 


emcdonald on DSK67QTVN1PROD with BILLS
8 

•S 731 IS

1 SEC. 5. PAYROLL TAX ON REMUNERATION UP TO CON2 TRIBUTION AND BENEFIT BASE AND MORE 

3 THAN $250,000. 

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

5 of the Internal Revenue Code of 1986 is amended by in6 serting after ‘‘such calendar year.’’ the following: ‘‘The 

7 preceding sentence shall apply only to calendar years for 

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

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

10 to so much of the remuneration paid to such employee 

11 by such employer with respect to employment as does not 

12 exceed $250,000.’’. 

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

14 section 3121 of the Internal Revenue Code of 1986 is 

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

16 excess of $250,000, to’’. 

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

18 this section shall apply to remuneration paid after Decem19 ber 31, 2015. 

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

21 UP TO CONTRIBUTION AND BENEFIT BASE 

22 AND MORE THAN $250,000. 

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

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

25 as follows: 


emcdonald on DSK67QTVN1PROD with BILLS
9 

•S 731 IS

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

2 1401(a), the excess of— 

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

4 self-employment which is in excess of— 

5 ‘‘(i) an amount equal to the contribu6 tion and benefit base (as determined under 

7 section 230 of the Social Security Act) 

8 which is effective for the calendar year in 

9 which such taxable year begins, minus 

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

11 such individual during such taxable years; 

12 over 

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

14 self-employment which is in excess of the sum 

15 of— 

16 ‘‘(i) the excess of— 

17 ‘‘(I) the net earning from self18 employment reduced by the excess (if 

19 any) of subparagraph (A)(i) over sub20 paragraph (A)(ii), over 

21 ‘‘(II) $250,000, reduced by such 

22 contribution and benefit base, plus 

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

24 such individual during such taxable year in 


emcdonald on DSK67QTVN1PROD with BILLS
10 

•S 731 IS

1 excess of such contribution and benefit 

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

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

4 the Internal Revenue Code of 1986 is amended by adding 

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

6 to taxable years beginning in calendar years for which the 

7 contribution and benefit base (as determined under section 

8 230 of the Social Security Act) is less than $250,000.’’. 

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

10 this section shall apply to net earnings from self-employ11 ment derived, and remuneration paid, after December 31, 

12 2015. 

13 SEC. 7. TAX ON INVESTMENT GAIN. 

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

15 the Internal Revenue Code of 1986 is amended by striking 

16 ‘‘3.8 percent’’ each place it appears and inserting ‘‘10 per17 cent’’. 

18 (b) CONFORMING AMENDMENT.—The heading for 

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

20 amended by inserting ‘‘AND SOCIAL SECURITY’’ 

21 after ‘‘MEDICARE’’. 

22 (c) TRUST FUNDS.— 

23 (1) FEDERAL OLD-AGE AND SURVIVORS INSUR24 ANCE TRUST FUND.—Subsection (a) of section 201 


emcdonald on DSK67QTVN1PROD with BILLS
11 

•S 731 IS

1 of the Social Security Act (42 U.S.C. 401) is amend2 ed— 

3 (A) in paragraph (4), by striking the pe4 riod at the end and inserting ‘‘; and’’; 

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

6 following new paragraph: 

7 ‘‘(5) 62 percent of the taxes imposed under section 

8 1411 of the Internal Revenue Code of 1986, less the 

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

10 section.’’; and 

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

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

13 each place it appears and inserting 

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

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

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

17 (2) FEDERAL DISABILITY INSURANCE TRUST

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

19 (A) in paragraph (2), by striking the pe20 riod at the end and inserting ‘‘; and’’; and 

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

22 paragraph: 

23 ‘‘(3) 9 percent of the taxes imposed under section 

24 1411 of the Internal Revenue Code of 1986.’’. 


emcdonald on DSK67QTVN1PROD with BILLS
12 

•S 731 IS

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2015. 

Æ 


emcdonald on DSK67QTVN1PROD with BILLS