Social Security Expansion Act
Bill: S.4365 | Sponsor: Sen. Sanders, Bernard (I-VT)
Policy area: Social Welfare

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 $147,000 for 2022).
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.

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 Representatives 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''.
    (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.

SEC. 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)) 
is amended by striking ``90 percent'' and inserting ``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)) is amended--
                    (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 2022, 
        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)), as redesignated by subsection (b), is amended by 
        inserting ``(after the application of clause (iii), when 
        applicable)'' after ``clause (ii)''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on January 1, 2023, 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.) for months in calendar 
        years beginning on or after such date.
            (2) Recomputation of primary insurance amounts.--
                    (A) In general.--Notwithstanding section 215(f) of 
                the Social Security Act (42 U.S.C. 415(f)), the 
                Commissioner of Social Security shall recompute primary 
                insurance amounts to the extent necessary to carry out 
                the amendments to this section.
                    (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, 2023, 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.

SEC. 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)) is amended by adding at the end the following new 
subparagraph:
            ``(H) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published by the 
        Bureau of Labor Statistics of the Department of Labor).''.
    (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' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published by the 
        Bureau of Labor Statistics of the Department of Labor).''.
            (2) Conforming change.--Section 215(i)(4) of the Social 
        Security Act (42 U.S.C. 415(i)(4)) is amended--
                    (A) by striking ``and by section 9001'' and 
                inserting ``, section 9001''; and
                    (B) by inserting ``and section 3 of the Social 
                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 following:
    ``(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, and, 
for purposes of making such an adjustment under such a provision, this 
subsection as in effect on the day before the date of enactment of such 
Act shall continue to apply.''.
    (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 calendar month, 
beginning with July of the calendar year following 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 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))) ending on or after September 30 of the second 
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 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 2022, 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\ 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 2023, the poverty guideline for 
        2022; and
            ``(II) for any calendar year after 2023, the annual dollar 
        amount for 2022 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 2021.
    ``(iv) For purposes of this subparagraph--
            ``(I) the term `year of work' means, with respect to an 
        individual, a year to which 4 quarters of coverage have been 
        credited based on such individual's wages and self-employment 
        income; and
            ``(II) the term `poverty guideline for 2022' means the 
        annual poverty guideline for 2022 (as updated annually in the 
        Federal Register by the Department 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 
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)) is amended by inserting ``215(a)(1)(E),'' after 
``215(a)(1)(D),''.

SEC. 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)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B)--
                                    (I) by striking ``or (ii)'' and 
                                inserting ``(ii)''; and
                                    (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,'' after ``22,'';
                            (ii) in subparagraph (E)--
                                    (I) by striking ``and (ii)'' and 
                                inserting ``(ii)''; and
                                    (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)'' before the comma at the 
                                end;
                            (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)'' and 
                                inserting ``(ii)''; and
                                    (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,'' after ``22,''; and
                            (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' means an individual who is in full-time attendance 
        as a student at an elementary school (but only in the case of 
        an individual who has not attained the age of 19) or a 
        secondary school or an institution described in section 102 of 
        the Higher Education Act of 1965 (20 U.S.C. 1002), as 
        determined by the Commissioner of Social Security (in 
        accordance with regulations prescribed by the Commissioner) in 
        the light of the standards and practices of the schools and 
        institutions involved, except that no individual shall be 
        considered a `full-time student at an educational institution' 
        if the individual is paid by his employer while attending a 
        school or institution at the request, or pursuant to a 
        requirement, of his employer. An individual shall not be 
        considered a `full-time student at an educational institution' 
        for the purpose of this section while that individual is 
        confined in a jail, prison, or other penal institution or 
        correctional facility, pursuant to the individual's conviction 
        of an offense (committed after the effective date of this 
        sentence) which constituted a felony under applicable law. An 
        individual who is determined to be a full-time student at an 
        educational institution shall be deemed to be such a student 
        throughout the month with respect to which such determination 
        is made.
            ``(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) immediately following such period. 
        An individual who does not meet the requirement of clause (ii) 
        with respect to such period of nonattendance shall be deemed to 
        have met such requirement (as of the beginning of such period) 
        if he is in full-time attendance at such a school or 
        institution immediately following such period.
            ``(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, 2023.
    (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'' and 
                inserting ``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)''; and
                    (B) in paragraph (4)--
                            (i) by striking ``(defining the terms 
                        `full-time elementary or secondary school 
                        student' and `elementary or secondary 
                        school')'';
                            (ii) by striking ``nineteen'' and inserting 
                        ``22'';
                            (iii) by striking ``full-time elementary or 
                        secondary school student'' and inserting 
                        ``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)'' and inserting ``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)'' and inserting ``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''; and
                            (vi) by striking ``elementary or secondary 
                        school in which he is enrolled'' and inserting 
                        ``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)) is amended--
                    (A) by striking ``full-time elementary or secondary 
                school student'' and inserting ``full-time student at 
                an educational institution''; and
                    (B) by striking ``19'' and inserting ``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, 2023.

SEC. 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) of the Internal 
Revenue Code of 1986 is amended by inserting 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(a) 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 on or after January 1 of the first calendar 
year that begins after the date of enactment of this Act.

SEC. 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) 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 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 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 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-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.

SEC. 8. TAX ON INVESTMENT GAIN.

    (a) Increase in Tax.--
            (1) 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 ``16.2 percent''.
            (2) Conforming amendment.--The heading for chapter 2A of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``UNEARNED INCOME MEDICARE CONTRIBUTION'' and inserting 
        ``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) of the Internal 
        Revenue Code of 1986 is amended--
                    (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)'' and inserting ``(determined under rules 
                similar to the rules of paragraphs (5) and (6) of 
                section 469(c))'', and
                    (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)'' after ``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.

SEC. 9. SOCIAL SECURITY TRUST FUND ESTABLISHED.

    (a) In General.--Section 201(a) of the Social Security Act (42 
U.S.C. 401(a)) is amended to read as follows:
    ``(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'. The Social Security Trust Fund shall consist of the securities 
held by the Secretary of the Treasury for the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund and the amount standing to the credit of the Federal Old-Age 
and Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund on the books of the Treasury on January 1 of the first 
calendar year beginning after the date of the enactment of section 9 of 
the Social Security Expansion Act, which securities and amount the 
Secretary of the Treasury is authorized and directed to transfer to the 
Social Security Trust Fund, and, in addition, such gifts and bequests 
as may be made as provided in subsection (i)(1), and such amounts as 
may be appropriated to, or deposited in, the Social Security Trust Fund 
as hereinafter provided. There is hereby appropriated to the Social 
Security Trust Fund for the first fiscal year that begins after the 
date of the enactment of section 9 of the Social Security Expansion 
Act, and for each fiscal year thereafter, out of any moneys in the 
Treasury not otherwise appropriated, amounts equivalent to 100 percent 
of--
            ``(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)) of the Internal Revenue Code of 1986 with respect to 
        self-employment income (as defined in section 1402 of such 
        Code) reported to the Secretary of the Treasury on tax returns 
        under subtitle F of such Code, as determined by the Secretary 
        of the Treasury by applying the applicable rate of tax under 
        such chapter (other than section 1401(b)) to such self-
        employment income, which self-employment income shall be 
        certified by the Commissioner of Social Security on the basis 
        of the records of self-employment income established and 
        maintained by the Commissioner of Social Security in accordance 
        with such returns; and
            ``(3) 62 percent of the taxes imposed under section 1411 of 
        the Internal Revenue Code of 1986.
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')'' and inserting ``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'' and 
                inserting ``Board of Trustees of the Trust Fund'';
                    (B) in paragraph (1), by striking ``Trust Funds'' 
                and inserting ``Trust Fund'';
                    (C) in paragraph (2)--
                            (i) by striking ``Trust Funds'' and 
                        inserting ``Trust Fund''; and
                            (ii) by striking ``their'' and inserting 
                        ``its'';
                    (D) in paragraph (3), by striking ``either of the 
                Trust Funds'' and inserting ``the Trust Fund'';
                    (E) in paragraph (5)--
                            (i) by striking ``managing the Trust 
                        Funds'' and inserting ``managing the Trust 
                        Fund''; and
                            (ii) by striking ``Trust Funds are'' and 
                        inserting ``Trust Fund is'';
                    (F) in the matter following paragraph (5), by 
                striking ``Trust Funds'' each place it appears and 
                inserting ``Trust Fund''; and
                    (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'' and inserting ``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'' each place 
        it appears and inserting ``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'' and inserting ``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'' and 
                inserting ``the Trust Fund''; and
                    (C) by striking ``such Trust Fund'' and inserting 
                ``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'' and 
                        all that follows through ``(Public Law 103-
                        296).''; and
                            (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'' and 
                        inserting ``Trust Fund''; and
                            (ii) by striking the last sentence; and
                    (C) in paragraph (4), by striking ``Trust Funds'' 
                each place it appears and inserting ``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'' and inserting ``the 
                Social Security Trust Fund''; and
                    (B) in paragraph (2)(B), by striking ``the Federal 
                Old-Age and Survivors Insurance Trust Fund'' and 
                inserting ``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)'' and inserting ``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'' and inserting ``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'' and inserting ``the Social Security Trust 
                Fund'';
                    (B) in paragraph (3), by striking ``one of the 
                Trust Funds'' and inserting ``the Trust Fund''; and
                    (C) by striking ``such Trust Fund'' each place it 
                appears and inserting ``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)'' and inserting ``subsection 
                                (h)(1)''; and
                                    (II) by striking ``subsection (d)'' 
                                and inserting ``subsection (c)''.
                            (ii) Section 1131(b)(1) of such Act is 
                        amended by striking ``section 201(g)(1)'' and 
                        inserting ``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.) is amended--
                    (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,'' and inserting ``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'' and inserting ``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'' and 
                inserting ``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'' and inserting ``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'' and inserting ``the balance in 
                                the Social Security Trust Fund''; and
                                    (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)''; and
                            (ii) in clause (ii)--
                                    (I) by striking ``the Federal Old-
                                Age and Survivors Insurance Trust Fund 
                                and the Federal Disability Insurance 
                                Trust Fund'' and inserting ``the Social 
                                Security Trust Fund''; and
                                    (II) by striking ``(other than 
                                payments'' and all that follows through 
                                ``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 after 2015, any reference in 
                such paragraph to the Federal Old-Age and Survivors 
                Insurance Trust Fund or the Federal Disability 
                Insurance Trust Fund shall be deemed to be a reference 
                to the Social Security Trust Fund.'';
                    (G) in section 221(e)--
                            (i) by striking ``Trust Funds'' each place 
                        it appears and inserting ``Trust Fund''; and
                            (ii) by striking the last sentence;
                    (H) in section 221(f), by striking ``Trust Funds'' 
                and inserting ``Trust Fund'';
                    (I) in section 222(d)--
                            (i) in the section heading, by striking 
                        ``Trust Funds'' and inserting ``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'' and inserting ``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''; and
                            (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'' and inserting ``Social Security Trust 
                        Fund''; and
                            (ii) in the matter preceding paragraph (1), 
                        by striking ``Federal Old-Age and Survivors 
                        Insurance Trust Fund'' and inserting ``Social 
                        Security Trust Fund'';
                    (K) in section 231(c), by striking ``Trust Funds'' 
                each place it appears and inserting ``Trust Fund''; and
                    (L) in section 234(a)(1), by striking ``Trust 
                Funds'' and inserting ``Trust Fund''.
            (2) Title vii.--Title VII of the Social Security Act (42 
        U.S.C. 901 et seq.) is amended--
                    (A) in section 703(j), by striking ``Federal 
                Disability Insurance Trust Fund, the Federal Old-Age 
                and Survivors Insurance Trust Fund,'' and inserting 
                ``Social Security Trust Fund'';
                    (B) in section 708(c), by striking ``the `OASDI 
                trust fund ratio' under section 201(l),'' after 
                ``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'' and inserting ``Social Security Trust 
                        Fund''; and
                            (ii) in subsection (b)--
                                    (I) in paragraph (1), by striking 
                                ``section 201(l) or''; and
                                    (II) in paragraph (2), by striking 
                                ``Federal Old-Age and Survivors 
                                Insurance Trust Fund and the Federal 
                                Disability Insurance Trust Fund'' and 
                                inserting ``Social Security Trust 
                                Fund''; and
                    (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'' and inserting ``Social Security Trust 
                        Fund''; and
                            (ii) in subsection (b)--
                                    (I) by striking ``any Trust Fund 
                                specified in subsection (a)'' and 
                                inserting ``the Social Security Trust 
                                Fund''; and
                                    (II) by striking ``payments from 
                                any such Trust Fund'' and inserting 
                                ``payments from the Social Security 
                                Trust Fund''.
            (3) Title xi.--Title XI of the Social Security Act (42 
        U.S.C. 1301 et seq.) is amended--
                    (A) in section 1106(b), by striking ``the Federal 
                Old-Age and Survivors Insurance Trust Fund, the Federal 
                Disability Insurance Trust Fund'' and inserting ``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'' and inserting 
                ``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'' and inserting ``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'' and inserting ``the Social 
                        Security Trust Fund''; and
                            (ii) by striking the second sentence.
            (4) Title xviii.--Title XVIII of the Social Security Act 
        (42 U.S.C. 1395) is amended--
                    (A) in section 1817(g), by striking ``Federal Old-
                Age and Survivors Insurance Trust Fund and from the 
                Federal Disability Insurance Trust Fund'' and inserting 
                ``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'' and inserting 
                ``Social Security Trust Fund''; and
                    (C) in section 1841(f), by striking ``Federal Old-
                Age and Survivors Insurance Trust Fund and from the 
                Federal Disability Insurance Trust Fund'' and inserting 
                ``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)) is 
                amended by striking ``Federal Old-Age and Survivors 
                Insurance and Federal Disability Insurance Trust 
                Funds'' and inserting ``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)) is amended by 
                striking ``Payments to Social Security Trust Funds'' 
                and inserting ``Payments to the Social Security Trust 
                Fund''.
            (2) Tax.--
                    (A) Taxable wages.--Section 3121(l)(4) of the 
                Internal Revenue Code of 1986 is amended by striking 
                ``Federal Old-Age and Survivors Insurance Trust Fund 
                and the Federal Disability Insurance Trust Fund'' and 
                inserting ``Social Security Trust Fund''.
                    (B) Overpayments.--
                            (i) Section 6402(d)(3)(C) of the Internal 
                        Revenue Code of 1986 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 
                        as appropriate by the Commissioner of Social 
                        Security'' and inserting ``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'' and 
                        inserting ``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'' and inserting ``Commissioner 
                        of Social Security''; and
                            (ii) by striking ``Federal Old-Age and 
                        Survivors Insurance Trust Fund'' and inserting 
                        ``Social Security Trust Fund''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``Secretary of Health and 
                        Human Services'' and inserting ``Commissioner 
                        of Social Security''; and
                            (ii) by striking ``Federal Disability 
                        Insurance Trust Fund'' and inserting ``Social 
                        Security Trust Fund''.
            (4) Railroad retirement board.--Section 7 of the Railroad 
        Retirement Act of 1974 (45 U.S.C. 231f) is amended--
                    (A) in subsection (b)(2), by striking ``Federal 
                Old-Age and Survivors Insurance Trust Fund and the 
                Federal Disability Insurance Trust Fund'' and inserting 
                ``Social Security Trust Fund'';
                    (B) in subsection (c)(2)--
                            (i) by striking ``Secretary of Health, 
                        Education, and Welfare'' each time it appears 
                        and inserting ``Commissioner of Social 
                        Security''; and
                            (ii) by striking ``Federal Old-Age and 
                        Survivors Insurance Trust Fund, the Federal 
                        Disability Insurance Trust Fund,'' each time it 
                        appears and inserting ``Social Security Trust 
                        Fund''; and
                    (C) in subsection (c)(4), by striking ``Federal 
                Old-Age and Survivors Insurance Trust Fund, the Federal 
                Disability Insurance Trust Fund,'' and inserting 
                ``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'' or the ``Federal Disability Insurance Trust 
Fund'' is deemed to be a reference to the Social Security 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.
                                 <all>