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. Extended benefit eligibility for children who are full-time students. Sec. 6. Payroll tax on remuneration up to contribution and benefit base and more than $250,000. Sec. 7. Tax on net earnings from self-employment up to contribution and benefit base and more than $250,000. Sec. 8. Tax on investment gain. Sec. 9. Social Security Trust Fund established. 2. Across-the-board benefit increase (a) Increase of first bend point percentage Section 215(a)(1)(A)(i) of the Social Security Act ( 42 U.S.C. 415(a)(1)(A)(i) 90 percent 95 percent (b) Adjustment To bend point amount (1) In general Section 215(a)(1)(B) of the Social Security Act ( 42 U.S.C. 415(a)(1)(B) (A) by redesignating clause (iii) as clause (iv); and (B) by inserting after clause (ii) the following new clause: (iii) For an individual who is eligible for an old-age or disability insurance benefit (or who dies before becoming eligible for such a benefit) in any calendar year after 2023, the amount determined for the individual under clause (ii) of this subparagraph for purposes of subparagraph (A)(i)(I) shall be increased by 22 percent. . (2) Conforming amendment Clause (iv) of section 215(a)(1)(B) of the Social Security Act ( 42 U.S.C. 415(a)(1)(B) (after the application of clause (iii), when applicable) clause (ii) (c) Effective date (1) In general The amendments made by this section shall take effect on January 1, 2024, and shall apply with respect to monthly insurance benefits payable under title II of the Social Security Act ( 42 U.S.C. 401 et seq. (2) Recomputation of primary insurance amounts (A) In general Notwithstanding section 215(f) of the Social Security Act ( 42 U.S.C. 415(f) (B) Rule of application In recomputing the primary insurance amount of an individual who initially became eligible for old-age or disability insurance benefits before January 1, 2024, the Commissioner of Social Security shall apply the increase described in clause (iii) of section 215(a)(1)(B) of the Social Security Act (as added by subsection (b)(1)(B)) to the amount determined under clause (ii) of such section 215(a)(1)(B) for the calendar year in which the individual initially became eligible for such benefits. 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) (A) by striking and by section 9001 , section 9001 (B) by inserting and section 3 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 3 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 2023, 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 2024, the poverty guideline for 2023; and (II) for any calendar year after 2024, the annual dollar amount for 2023 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 2022. (iv) For purposes of this subparagraph— (I) the term year of work (II) the term poverty guideline for 2023 . (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 2018, 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. Extended benefit eligibility for children who are full-time students (a) In general (1) In general Section 202(d) of the Social Security Act ( 42 U.S.C. 402(d) (A) in paragraph (1)— (i) in subparagraph (B)— (I) by striking or (ii) (ii) (II) by inserting or (iii) was the child of an individual entitled to disability insurance benefits or of an individual who dies a fully or currently insured individual and was a full-time student at an educational institution and had not attained the age of 22, 22, (ii) in subparagraph (E)— (I) by striking and (ii) (ii) (II) by inserting and (iii) is not a full-time student at an educational institution during any part of such month (in the case of a child who is the child of an individual entitled to disability insurance benefits or of an individual who dies a fully or currently insured individual) (iii) in subparagraph (F), by striking clauses (i) and (ii) and inserting the following: (i) in the case of a child who is the child of an individual entitled to old-age insurance benefits— (I) the first month during no part of which the child is a full-time elementary or secondary school student, or (II) the month in which the child attains the age of 19, and (ii) in the case of a child who is the child of an individual entitled to disability insurance benefits or of an individual who dies a fully or currently insured individual— (I) the first month during no part of which the child is a full-time student at an educational institution, or (II) the month in which the child attains the age of 22, ; and (iv) in subparagraph (G), by striking clauses (ii) and (iii) and inserting the following: (ii) in the case of a child who is the child of an individual entitled to old-age insurance benefits— (I) the first month during no part of which the child is a full-time elementary or secondary school student, or (II) the month in which the child attains the age of 19, and (iii) in the case of a child who is the child of an individual entitled to disability insurance benefits or of an individual who dies a fully or currently insured individual— (I) the first month during no part of which the child is a full-time student at an educational institution, or (II) the month in which the child attains the age of 22, ; (B) in paragraph (6)— (i) in subparagraph (A)— (I) by striking or (ii) (ii) (II) by inserting or (iii) is the child of an individual entitled to disability insurance benefits or of an individual who dies a fully or currently insured individual and is a full-time student at an educational institution and has not attained the age of 22, 22, (ii) by striking subparagraphs (D) and (E) and inserting the following: (D) the earlier of— (i) in the case of a child who is the child of an individual entitled to old-age insurance benefits— (I) the first month during no part of which the child is a full-time elementary or secondary school student; or (II) the month in which the child attains the age of 19; and (ii) in the case of a child who is the child of an individual entitled to disability insurance benefits or of an individual who dies a fully or currently insured individual— (I) the first month during no part of which the child is a full-time student at an educational institution; or (II) the month in which the child attains the age of 22; but only if the child is not under a disability (as so defined) in such earlier month; or (E) if the child was under a disability (as so defined), the termination month (as defined in paragraph (1)(G)(i)), subject to section 223(e), or (if later) the earlier of— (i) in the case of a child who is the child of an individual entitled to old-age insurance benefits— (I) the first month during no part of which the child is a full-time elementary or secondary school student; or (II) the month in which the child attains the age of 19; and (ii) in the case of a child who is the child of an individual entitled to disability insurance benefits or of an individual who dies a fully or currently insured individual— (I) the first month during no part of which the child is a full-time student at an educational institution; or (II) the month in which the child attains the age of 22. ; and (C) in paragraph (7), by adding at the end the following new paragraphs: (E) The term full-time student at an educational institution 20 U.S.C. 1002 full-time student at an educational institution full-time student at an educational institution (F) Except to the extent provided in such regulations, an individual shall be deemed to be a full-time student at a school or educational institution during any period of nonattendance at a school or institution at which he has been in full-time attendance if (i) such period is 4 calendar months or less, and (ii) the individual shows to the satisfaction of the Commissioner of Social Security that the individual intends to continue to be in full-time attendance at a secondary school or institution described in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 (G) A child who attains age 22 at a time when the child is a full-time student of an educational institution (as defined in subparagraph (E) and without application of subparagraph (F)) but has not (at such time) completed the requirements for, or received, a diploma or equivalent certificate from a secondary school (as defined in subparagraph (C)(i)) or, if such child is a student at an educational institution described in section 102 of the Higher Education Act of 1965, a diploma, degree, or equivalent degree from such an institution, shall be deemed (for purposes of determining whether the child's entitlement to benefits under this subsection has terminated under paragraph (1)(F) and for purposes of determining his initial entitlement to such benefits under clause (iii) of paragraph (1)(B)) not to have attained such age until the first day of the first month following the end of the quarter or semester in which he is enrolled at such time (or, if the secondary school or educational institution in which he is enrolled is not operated on a quarter or semester system, until the first day of the first month following the completion of the course in which the child is so enrolled or until the first day of the third month beginning after such time, whichever first occurs). . (2) Effective date The amendments made by this subsection shall apply to child’s insurance benefits that are payable for months beginning on or after January 1, 2024. (b) Railroad Retirement Act (1) Section 2(d) of the Railroad Retirement Act of 1974 (45 U.S.C. 232(2)(d)) is amended— (A) in clause (iii) of paragraph (1), by striking will be less than nineteen years of age and a full-time elementary or secondary school student will be less than 22 years of age and a full-time student at an educational institution (as defined in section 202(d)(7)(E) of the Social Security Act) (B) in paragraph (4)— (i) by striking (defining the terms full-time elementary or secondary school student elementary or secondary school (ii) by striking nineteen 22 (iii) by striking full-time elementary or secondary school student full-time student at an educational institution (iv) by striking subparagraph (A) of paragraph (7) of section 202(d) of the Social Security Act and without the application of subparagraph (B) subparagraph (E) of section 202(d)(7) of the Social Security Act, without regard to subparagraph (F) of such section (v) by striking a diploma or equivalent certificate from a secondary school (as defined in section 202(d)(7)(c)(i) of the Social Security Act) a diploma, degree, or equivalent certificate from a secondary school or educational institution described in section 202(d)(7)(E) of the Social Security Act (vi) by striking elementary or secondary school in which he is enrolled school or institution in which the child is enrolled (2) Section 5(c)(7) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 235(c)(7) (A) by striking full-time elementary or secondary school student full-time student at an educational institution (B) by striking 19 22 (3) The amendments made by this subsection shall apply to benefits under the Railroad Retirement Act of 1974 that are payable for months beginning on or after January 1, 2024. 6. Payroll tax on remuneration up to contribution and benefit base and more than $250,000 (a) In general Paragraph (1) of section 3121(a) (1) in the case of taxes imposed by sections 3101(a) and 3111(a), for any calendar year in which the contribution and benefit base (as determined under section 230 of the Social Security Act) is less than $250,000, so much of the remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment that has been paid to an individual by an employer during the calendar year as exceeds such contribution and benefit base but does not exceed $250,000; . (b) Conforming amendments (1) Successor employers Paragraph (1) of section 3121(a) (aa) Special rules for successor employers For purposes of subsection (a)(1), if an employer (hereinafter referred to as successor employer) during any calendar year acquires substantially all the property used in a trade or business of another employer (hereinafter referred to as a predecessor), or used in a separate unit of a trade or business of a predecessor, and immediately after the acquisition employs in his trade or business an individual who immediately prior to the acquisition was employed in the trade or business of such predecessor, then, for the purpose of determining the amount of remuneration paid by the successor employer under such subsection, any remuneration (other than remuneration referred to in the paragraphs succeeding paragraph (1) of subsection (a)) with respect to employment paid (or considered under this subsection as having been paid) to such individual by such predecessor during such calendar year and prior to such acquisition shall be considered as having been paid by such successor employer. . (2) Application to railroad retirement taxes Clause (i) of section 3231(e)(2)(A) of such Code is amended to read as follows: (i) In general For any calendar year in which the applicable base is less than $250,000, the term compensation . (c) Effective date The amendments made by this section shall apply to remuneration paid on or after January 1 of the first calendar year that begins after the date of enactment of this Act. 7. 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) for any taxable year beginning in a calendar year in which the contribution and benefit base (as determined under section 230 of the Social Security Act) is less than $250,000, the excess (if any) of— (A) so much 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) the sum of— (i) the excess (if any) 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 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, on or after January 1 of the first calendar year that begins after the date of enactment of this Act. 8. Tax on investment gain (a) Increase in tax (1) In general Subsection (a) of section 1411 3.8 percent 16.2 percent (2) Conforming amendment The heading for chapter 2A Unearned income medicare contribution Additional tax on unearned income in lieu of Social Security and Medicare taxes (b) Inclusion of active trade or business income (1) In general Section 1411(c)(1)(A) (A) in clause (i), by striking , other than such income which is derived in the ordinary course of a trade or business not described in paragraph (2) (B) in clause (ii), by striking described in paragraph (2) (determined under rules similar to the rules of paragraphs (5) and (6) of section 469(c)) (C) in clause (iii), by striking other than property held in a trade or business not described in paragraph (2) (2) Denial of deduction for net operating losses Section 1411(c)(1)(B) of such Code is amended by inserting (other than the deduction for net operating losses provided in section 172) net gain (3) Conforming amendments (A) Section 1411(c) of such Code is amended by striking paragraphs (2), (3), and (4) and by redesignating paragraphs (5) and (6) as paragraphs (2) and (3), respectively. (B) Section 1411(c)(3) of such Code, as redesignated by subparagraph (A), is amended to read as follows: (3) Special rule Net investment income shall not include— (A) any item taken into account in determining self-employment income for such taxable year on which a tax is imposed by section 1401, or (B) any item taken into account in determining wages received with respect to employment for such taxable year on which a tax is imposed by section 3101. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. 9. Social Security Trust Fund established (a) In general Section 201(a) of the Social Security Act ( 42 U.S.C. 401(a) (a) There is hereby created on the books of the Treasury of the United States a trust fund to be known as the Social Security Trust Fund Social Security Expansion Act Social Security Expansion Act (1) the taxes imposed by chapter 21 (other than sections 3101(b) and 3111(b)) of the Internal Revenue Code of 1986 with respect to wages (as defined in section 3121 of such Code) reported to the Secretary of the Treasury pursuant to subtitle F of the Internal Revenue Code of 1986, as determined by the Secretary of the Treasury by applying the applicable rates of tax under such chapter (other than sections 3101(b) and 3111(b)) to such wages, which wages shall be certified by the Commissioner of Social Security on the basis of the records of wages established and maintained by such Commissioner in accordance with such reports; (2) the taxes imposed by chapter 2 (other than section 1401(b)) (3) 62 percent of the taxes imposed under section 1411 The amounts appropriated by paragraphs (1), (2), and (3) shall be transferred from time to time from the general fund in the Treasury to the Social Security Trust Fund, such amounts to be determined on the basis of estimates by the Secretary of the Treasury of the taxes, specified in paragraphs (1), (2), and (3), paid to or deposited into the Treasury; and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or were less than the taxes specified in such paragraphs. All amounts transferred to the Social Security Trust Fund under the preceding sentence shall be invested by the Managing Trustee in the same manner and to the same extent as the other assets of the Trust Fund. Notwithstanding the preceding sentence, in any case in which the Secretary of the Treasury determines that the assets of the Trust Fund would otherwise be inadequate to meet the Trust Fund's obligations for any month, the Secretary of the Treasury shall transfer to the Trust Fund on the first day of such month the total amount which would have been transferred to the Trust Fund under this section as in effect on October 1, 1990; and the Trust Fund shall pay interest to the general fund on the amount so transferred on the first day of any month at a rate (calculated on a daily basis, and applied against the difference between the amount so transferred on such first day and the amount which would have been transferred to the Trust Fund up to that day under the procedures in effect on January 1, 1983) equal to the rate earned by the investments of the Trust Fund in the same month under subsection (d). . (b) Required actuarial analysis Section 201(c) of the Social Security Act is amended by striking the fourth sentence in the matter following paragraph (5) and inserting the following: Such report shall also include actuarial analysis of the benefit cost with respect to disabled beneficiaries and their auxiliaries, to retired beneficiaries and their auxiliaries, and to survivor beneficiaries. (c) Board of Trustees (1) Board of Trustees of Social Security Trust Fund Section 201(c) of the Social Security Act, as amended by subsection (b) of this section, is further amended in the matter preceding paragraph (1) by striking the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund (hereinafter in this title called the Trust Funds the Social Security Trust Fund (in this title referred to as the Trust Fund (2) Continuity of Board of Trustees The Board of Trustees of the Social Security Trust Fund created by the amendment made by subsection (a) shall be a continuous body with the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund in operation prior to the effective date of such amendment. Individuals serving as members of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund as of the effective date of such amendment shall serve the remainder of their term as members of the Board of Trustees of the Social Security Trust Fund. (d) Conforming amendments related to Social Security Trust Fund (1) Amendment to section heading The section heading for section 201 of the Social Security Act is amended to read as follows: Social Security Trust Fund (2) Board of Trustees Section 201(c) of such Act, as amended by subsections (b) and (c)(1), is further amended— (A) in the matter preceding paragraph (1), by striking Board of Trustees of the Trust Funds Board of Trustees of the Trust Fund (B) in paragraph (1), by striking Trust Funds Trust Fund (C) in paragraph (2)— (i) by striking Trust Funds Trust Fund (ii) by striking their its (D) in paragraph (3), by striking either of the Trust Funds the Trust Fund (E) in paragraph (5)— (i) by striking managing the Trust Funds managing the Trust Fund (ii) by striking Trust Funds are Trust Fund is (F) in the matter following paragraph (5), by striking Trust Funds Trust Fund (G) in the second sentence in the matter following paragraph (5), by striking whether the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, individually and collectively, are whether the Social Security Trust Fund is (3) Investments Section 201 of such Act is amended in subsections (d) and (e) by striking Trust Funds Trust Fund (4) Crediting of interest and proceeds to Trust Funds Section 201(f) of such Act is amended— (A) by striking the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund shall be credited to and form a part of the Federal Old-Age and Survivors Insurance Trust Fund and the Disability Insurance Trust Fund, respectively the Social Security Trust Fund shall be credited to and form a part of the Social Security Trust Fund (B) by striking either of the Trust Funds the Trust Fund (C) by striking such Trust Fund the Trust Fund (5) Administrative costs Section 201(g) of such Act is amended— (A) in paragraph (1)— (i) in subparagraph (A), by striking Of the amounts authorized to be made available out of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund under the preceding sentence ( Public Law 103–296 (ii) in subparagraph (B)(i)— (I) by striking subclauses (II) and (III) and inserting the following: (II) the portion of such costs which should have been borne by the Social Security Trust Fund, ; and (II) by redesignating subclauses (IV) and (V) as subclauses (III) and (IV); (B) in paragraph (2)— (i) by striking Trust Funds Trust Fund (ii) by striking the last sentence; and (C) in paragraph (4), by striking Trust Funds Trust Fund (6) Benefit payments Section 201(h) of such Act is amended to read as follows: (h) All benefit payments required to be made under this title shall be made only from the Social Security Trust Fund. . (7) Gifts Section 201(i) of such Act is amended— (A) in paragraph (1), by striking the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund the Social Security Trust Fund (B) in paragraph (2)(B), by striking the Federal Old-Age and Survivors Insurance Trust Fund the Social Security Trust Fund (8) Travel expenses Section 201(j) of such Act is amended by striking the Federal Old-Age and Survivors Insurance Trust Fund, or the Federal Disability Insurance Trust Fund (as determined appropriate by the Commissioner of Social Security) the Social Security Trust Fund (9) Demonstration projects Section 201(k) of such Act is amended by striking the Federal Disability Insurance Trust Fund and the Federal Old-Age and Survivors Insurance Trust Fund, as determined appropriate by the Commissioner of Social Security the Social Security Trust Fund (10) Benefit checks Section 201(m) of such Act is amended— (A) in paragraph (2), by striking each of the Trust Funds the Social Security Trust Fund (B) in paragraph (3), by striking one of the Trust Funds the Trust Fund (C) by striking such Trust Fund the Trust Fund (11) Conforming repeals (A) In general Section 201 of such Act is amended by striking subsections (b), (l), and (n). (B) Redesignations Section 201 of such Act is further amended— (i) by redesignating subsections (c) through (j) as subsections (b) through (i), respectively; (ii) by redesignating subsection (k) as subsection (j); and (iii) by redesignating subsection (m) as subsection (k). (C) References to redesignated sections (i) Section 201(a) of such Act, as amended by subsection (a) of this section, is further amended— (I) by striking subsection (i)(1) subsection (h)(1) (II) by striking subsection (d) subsection (c) (ii) Section 1131(b)(1) of such Act is amended by striking section 201(g)(1) section 201(f)(1) (e) Other conforming amendments to Social Security Act (1) Title II Title II of the Social Security Act ( 42 U.S.C. 401 et seq. (A) in section 202(x)(3)(B)(iii), by striking the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, as appropriate, the Social Security Trust Fund (B) in section 206(d)(5), by striking the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, as appropriate the Social Security Trust Fund (C) in section 206(e)(3)(B), by striking the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund the Social Security Trust Fund (D) in section 208(b)(5)(A), by striking the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, as appropriate the Social Security Trust Fund (E) in section 215(i)(1)(F)— (i) in clause (i)— (I) by striking the combined balance in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund the balance in the Social Security Trust Fund (II) by striking and reduced by the outstanding amount of any loan (including interest thereon) theretofore made to either such Fund from the Federal Hospital Insurance Trust Fund under section 201(l) (ii) in clause (ii)— (I) by striking the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund the Social Security Trust Fund (II) by striking (other than payments from that Account (F) in section 217(g)(2), by inserting after the first sentence the following: For purposes of any such revision of the amount determined under paragraph (1) that occurs in a year that begins after the year in which the Social Security Expansion Act (G) in section 221(e)— (i) by striking Trust Funds Trust Fund (ii) by striking the last sentence; (H) in section 221(f), by striking Trust Funds Trust Fund (I) in section 222(d)— (i) in the section heading, by striking Trust Funds Trust Fund (ii) in paragraph (1), by striking to the end that savings will accrue to the Trust Funds as a result of rehabilitating such individuals, there are authorized to be transferred from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the end that savings will accrue to the Trust Fund as a result of rehabilitating such individuals, there are authorized to be transferred from the Social Security Trust Fund (iii) by amending paragraph (4) to read as follows: (4) The Commissioner of Social Security shall determine according to such methods and procedures as the Commissioner may deem appropriate the total amount to be reimbursed for the cost of services under this subsection. ; (J) in section 228(g)— (i) in the section heading, by striking Federal Old-Age and Survivors Insurance Trust Fund Social Security Trust Fund (ii) in the matter preceding paragraph (1), by striking Federal Old-Age and Survivors Insurance Trust Fund Social Security Trust Fund (K) in section 231(c), by striking Trust Funds Trust Fund (L) in section 234(a)(1), by striking Trust Funds Trust Fund (2) Title VII Title VII of the Social Security Act ( 42 U.S.C. 901 et seq. (A) in section 703(j), by striking Federal Disability Insurance Trust Fund, the Federal Old-Age and Survivors Insurance Trust Fund, Social Security Trust Fund (B) in section 708(c), by striking the OASDI trust fund ratio computing (C) in section 709— (i) in subsection (a), by striking Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund Social Security Trust Fund (ii) in subsection (b)— (I) in paragraph (1), by striking section 201(l) or (II) in paragraph (2), by striking Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund Social Security Trust Fund (D) in section 710— (i) in subsection (a), by striking Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund Social Security Trust Fund (ii) in subsection (b)— (I) by striking any Trust Fund specified in subsection (a) the Social Security Trust Fund (II) by striking payments from any such Trust Fund payments from the Social Security Trust Fund (3) Title XI Title XI of the Social Security Act ( 42 U.S.C. 1301 et seq. (A) in section 1106(b), by striking the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund the Social Security Trust Fund (B) in section 1129(e)(2)(A), by striking the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, as determined appropriate by the Secretary the Social Security Trust Fund (C) in sections 1131(b)(2) and 1140(c)(2), by striking the Federal Old-Age and Survivors Insurance Trust Fund the Social Security Trust Fund (D) in section 1145(c)— (i) by striking paragraphs (1) and (2) and inserting the following: (1) the Social Security Trust Fund; ; and (ii) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and (E) in section 1148(j)(1)(A)— (i) in the first sentence, by striking the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund the Social Security Trust Fund (ii) by striking the second sentence. (4) Title XVIII Title XVIII of the Social Security Act ( 42 U.S.C. 1395 (A) in section 1817(g), by striking Federal Old-Age and Survivors Insurance Trust Fund and from the Federal Disability Insurance Trust Fund Social Security Trust Fund (B) in section 1840(a)(2), by striking Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund Social Security Trust Fund (C) in section 1841(f), by striking Federal Old-Age and Survivors Insurance Trust Fund and from the Federal Disability Insurance Trust Fund Social Security Trust Fund (f) Conforming amendments outside of Social Security Act (1) Budget (A) Off-budget exemption Section 405(a) of the Congressional Budget Act of 1974 ( 2 U.S.C. 655(a) Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds Social Security Trust Fund (B) Sequestration exemption Section 255(g)(1)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 905(g)(1)(A) Payments to Social Security Trust Funds Payments to the Social Security Trust Fund (2) Tax (A) Taxable wages Section 3121(l)(4) Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund Social Security Trust Fund (B) Overpayments (i) Section 6402(d)(3)(C) Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, whichever is certified to the Secretary as appropriate by the Commissioner of Social Security Social Security Trust Fund (ii) Subsection (f)(2)(B) of section 3720A of title 31, United States Code, is amended by striking Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, whichever is certified to the Secretary of the Treasury as appropriate by the Commissioner of Social Security Social Security Trust Fund (3) False claims penalties Subsection (g)(2) of section 3806 of title 31, United States Code, is amended— (A) in subparagraph (B)— (i) by striking Secretary of Health and Human Services Commissioner of Social Security (ii) by striking Federal Old-Age and Survivors Insurance Trust Fund Social Security Trust Fund (B) in subparagraph (C)— (i) by striking Secretary of Health and Human Services Commissioner of Social Security (ii) by striking Federal Disability Insurance Trust Fund Social Security Trust Fund (4) Railroad Retirement Board Section 7 of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231f (A) in subsection (b)(2), by striking Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund Social Security Trust Fund (B) in subsection (c)(2)— (i) by striking Secretary of Health, Education, and Welfare Commissioner of Social Security (ii) by striking Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, Social Security Trust Fund (C) in subsection (c)(4), by striking Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, Social Security Trust Fund (g) Rule of construction Effective beginning on January 1 of the first calendar year beginning after the date of the enactment of this section, any reference in law to the Federal Old-Age and Survivors Insurance Trust Fund Federal Disability Insurance Trust Fund (h) Effective date The amendments made by this section shall take effect on January 1 of the first calendar year beginning after the date of the enactment of this section.

Summary: Social Security Expansion Act This bill increases benefits and certain taxes related to the Social Security program. Changes to benefits include (1) increasing the primary insurance amount for certain beneficiaries; (2) revising the method of calculating cost-of-living adjustments; (3) establishing a new minimum benefit for certain low earners; and (4) allowing certain children of retired, deceased, or disabled workers to receive benefits until age 22 if they are a full-time student. Changes to taxes include (1) increasing the net investment income tax and making active trade or business income subject to this tax; and (2) extending payroll taxes on wages, salaries, and self-employment earnings to income above $250,000 (the maximum amount subject to the Social Security payroll tax is currently $160,200 for 2023). The bill also 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.