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. GRI-
JALVA, 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 fol-
lowing 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 com-
mittee concerned 
A BILL 
To enhance Social Security benefits and ensure the long- 
term solvency of the Social Security program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Social Security Expansion Act’’. 
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(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 ben-
efit 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 eligi-
ble for old-age or disability insurance benefits, or 
who die (before becoming eligible for such benefits) 
in any calendar year after 2022, the amount deter-
mined under clause (i) of this subparagraph for pur-
poses 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 
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amended by inserting ‘‘and by section 102 of the So-
cial 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 fol-
lowing: 
‘‘(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 amend-
ments made by section 102 of the Social Security Expan-
sion 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 cal-
endar month, beginning with July of the calendar year fol-
lowing 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 re-
spect to cost-of-living computation quarters (as defined in 
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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 sec-
ond 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 sub-
paragraph (E); and 
(2) by inserting after subparagraph (C) the fol-
lowing new subparagraph: 
‘‘(D)(i) Effective with respect to the benefits of indi-
viduals who become eligible for old-age insurance benefits 
or disability insurance benefits (or die before becoming so 
eligible) after 2017, no primary insurance amount com-
puted under subparagraph (A) may be less than the great-
er 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). 
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‘‘(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 guide-
line for 2017; and 
‘‘(II) for any calendar year after 2018, the an-
nual dollar amount for 2018 multiplied by the ratio 
of— 
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‘‘(aa) the national average wage index (as 
defined in section 209(k)(1)) for the second cal-
endar 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 re-
spect to an individual, a year to which 4 quarters of 
coverage have been credited based on such individ-
ual’s wages and self-employment income; and 
‘‘(II) the term ‘poverty guideline for 2017’ 
means the annual poverty guideline for 2015 (as up-
dated annually in the Federal Register by the De-
partment 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 Novem-
ber 2016 to the extent necessary to carry out the amend-
ments made by this section. 
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(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 CON-
TRIBUTION 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 in-
serting 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 Decem-
ber 31, 2017. 
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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 contribu-
tion 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 sub-
paragraph (A)(ii), over 
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‘‘(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-employ-
ment 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 per-
cent’’. 
(b) CONFORMING AMENDMENT.—The heading for 
chapter 2A of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘AND SOCIAL SECURITY’’ 
after ‘‘MEDICARE’’. 
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(c) TRUST FUNDS.— 
(1) FEDERAL OLD-AGE AND SURVIVORS INSUR-
ANCE TRUST FUND.—Subsection (a) of section 201 
of the Social Security Act (42 U.S.C. 401) is amend-
ed— 
(A) in paragraph (4), by striking the pe-
riod 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 pe-
riod at the end and inserting ‘‘; and’’; and 
(B) by adding at the end the following new 
paragraph: 
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‘‘(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. 
Æ 
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