Social Security Expansion Act

To enhance Social Security benefits and ensure the long-term solvency of the Social Security program. 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. 2. Across-the-board benefit increase Section 215(a)(1)(B) of the Social Security Act ( 42 U.S.C. 415(a)(1)(B) (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. . 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) (H) the term Consumer Price Index . (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 . (2) Conforming change Section 215(i)(4) of the Social Security Act ( 42 U.S.C. 415(i)(4) and by section 102 of the Social Security Expansion Act 1986 (c) No effect on adjustments under other laws Section 215(i) of the Social Security Act ( 42 U.S.C. 415(i) (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 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) 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) (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 (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 2018 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 (II) the term poverty guideline for 2017 . (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) 215(a)(1)(E), 215(a)(1)(D), 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) such calendar year. 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 Act) to 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. 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) (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 earnings 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 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. 7. Tax on investment gain (a) In general Subsection (a) of section 1411 3.8 percent 10 percent (b) Conforming amendment The heading for chapter 2A and Social Security 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 (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 ; and (C) in the flush matter at the end— (i) by striking clauses (3) and (4) clauses (3), (4), and (5) (ii) by striking clauses (1) and (2) 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 (B) by adding at the end the following new paragraph: (3) 9 percent of the taxes imposed under section 1411 . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

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 specifed amounts of such tax revenue to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.