Social Security Enhancement and Protection Act of 2021
Bill: H.R.5050 | Sponsor: Rep. Moore, Gwen (D-WI)
Policy area: Social Welfare

Summary:
Social Security Enhancement and Protection Act of 2021
This bill increases certain Social Security taxes and benefits.
Under current law, Social Security has a taxable earnings base, which refers to the maximum amount of a worker's earnings that are subject to Social Security payroll taxes (set at $148,200 in 2021). Additionally, the taxable earnings base serves as the maximum amount of earnings used to calculate a worker's Social Security benefits.
This bill gradually increases the Social Security payroll tax rate from 6.2% to 6.5% over six years. It also phases out the taxable earnings base, thereby applying the payroll taxes to a greater amount of a worker's earnings, and revises the method to calculate a worker's Social Security benefits to account for earnings in excess of the taxable earnings base.
Other changes to benefits include establishing a new method to calculate benefits for lifetime low earners and increasing benefits for certain beneficiaries on account of long-term eligibility. In addition, an eligible child of a retired, disabled, or deceased worker may continue to receive benefits through age 26, provided the child is a full-time student.

To amend title II of the Social Security Act to make various reforms to 
                Social Security, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Enhancement and 
Protection Act of 2021''.

SEC. 2. INCREASE IN SPECIAL MINIMUM BENEFIT FOR LIFETIME LOW EARNERS 
              BASED ON YEARS IN THE WORKFORCE.

    Section 215(a)(1)(C) of the Social Security Act (42 U.S.C. 
415(a)(1)(C)) is amended to read as follows:
    ``(C)(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 2021, no primary 
insurance amount computed under subparagraph (A) may be less than the 
applicable percentage of \1/12\ of the annual dollar amount determined 
under clause (iv) for the year in which the amount is determined.
    ``(ii) For purposes of clause (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                                       The applicable
 years of work is:                                       percentage is:
        11...........................................     36.7 percent 
        12...........................................     40.0 percent 
        13...........................................     43.3 percent 
        14...........................................     46.7 percent 
        15...........................................     50.0 percent 
        16...........................................     53.3 percent 
        17...........................................     56.7 percent 
        18...........................................     60.0 percent 
        19...........................................     63.3 percent 
        20...........................................     66.7 percent 
        21...........................................     70.0 percent 
        22...........................................     73.3 percent 
        23...........................................     76.7 percent 
        24...........................................     80.0 percent 
        25...........................................     83.3 percent 
        26...........................................     86.7 percent 
        27...........................................     90.0 percent 
        28...........................................     93.3 percent 
        29...........................................     96.7 percent 
        30 or more...................................    100.0 percent.

    ``(iii) The annual dollar amount determined under this clause is--
            ``(I) for calendar year 2022, the poverty guideline for 
        2021; and
            ``(II) for any calendar year after 2022, 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 2020.
    ``(iv) For purposes of this subparagraph--
            ``(I) the term `number of years of work' means, with 
        respect to an individual, the sum of--
                    ``(aa) \1/4\ of the total number of quarters of 
                coverage credited to such individual (disregarding any 
                fraction); and
                    ``(bb) the number of years (not exceeding 5) in all 
                of which the individual provided care for a child under 
                6 years of age who resided in the individual's home; 
                and
            ``(II) the term `poverty guideline for 2019' means the 
        annual poverty guideline for 2021 (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''.

SEC. 3. ESTABLISHMENT OF AN INCREASED BENEFIT FOR BENEFICIARIES ON 
              ACCOUNT OF LONG-TERM ELIGIBILITY.

    (a) In General.--Section 202 of the Social Security Act (42 U.S.C. 
402) is amended by adding at the end the following new subsection:
    ``(aa) Increase in Benefit Amounts on Account of Long-Term 
Eligibility.--(1) In the case of an individual who is a qualified 
beneficiary for a calendar year after 2021, the amount of any monthly 
insurance benefit of such qualified beneficiary under this section or 
section 223 for any month in such calendar year shall be increased in 
accordance with paragraph (3).
    ``(2)(A) For purposes of this subsection, the term `qualified 
beneficiary' for a calendar year means an individual in any case in 
which such calendar year begins at least 16 years after the applicable 
date of eligibility for such individual.
    ``(B) For purposes of this subsection, the applicable date of 
eligibility for an individual is the date on which the individual on 
whose wages and self-employment income the monthly insurance benefit is 
based initially became eligible (or died before becoming eligible) for 
old-age insurance benefits under subsection (a) or disability insurance 
benefits under section 223.
    ``(3)(A) The increase required under paragraph (1) with respect to 
the monthly insurance benefit of an individual who is a qualified 
beneficiary for a calendar year shall be equal to the applicable 
percentage (specified for such benefit in subparagraph (B)) of the full 
increase amount for such calendar year (determined under subparagraph 
(C)).
    ``(B) The applicable percentage specified for a monthly insurance 
benefit under this subparagraph for a calendar year is the percentage 
specified, in connection with the number of years ending after the 
applicable date of eligibility for such individual and before such 
calendar year, in the following table:

                                                         The applicable
``If the number of years is:                             percentage is:
        16...........................................       20 percent 
        17...........................................       40 percent 
        18...........................................       60 percent 
        19...........................................       80 percent 
        20 or larger.................................      100 percent.

    ``(C)(i) Except as provided in clause (ii), the full increase 
amount determined under this subparagraph for a calendar year in 
connection with the monthly insurance benefit of a qualified 
beneficiary is a dollar amount equal to 5 percent of the amount of the 
benefit if--
            ``(I) such benefit were based on the primary insurance 
        amount determined for January of such calendar year of a 
        putative individual;
            ``(II) on January 1 of the calendar year in which occurred 
        the applicable eligibility date with respect to such 
        individual, such putative individual were fully insured, 
        attained retirement age (as defined in section 216(l)(2)) and 
        were otherwise eligible for, and applied for, old-age insurance 
        benefits; and
            ``(III) such putative individual's average indexed monthly 
        earnings taken into account in determining such primary 
        insurance amount were equal to \1/12\ of the national average 
        wage index (as defined in section 209(k)(1)) for the second 
        year prior to such calendar year.
    ``(ii)(I) In the case of a monthly insurance benefit under 
subsection (b) or (c), the full increase amount determined under this 
subparagraph shall be one-half the amount determined under clause (i); 
or
    ``(II) in the case of a monthly insurance benefit under subsection 
(d), (g), or (h), the full increase amount determined under this 
subparagraph shall be the percentage of the amount determined under 
clause (i) equal to the ratio which the amount of such benefit bears to 
the primary insurance amount (before the application of section 203(a)) 
of the individual on whose wages and self-employment income the monthly 
insurance benefit is based.
    ``(4) In the case of a qualified beneficiary who is entitled to two 
or more monthly insurance benefits under this title for the same 
month--
            ``(A) the earliest applicable date of eligibility for such 
        beneficiary with respect to such benefits shall be treated as 
        the applicable date of eligibility for such beneficiary for the 
        purposes of this subsection; and
            ``(B) such beneficiary shall be entitled to an increase 
        with respect only to one such benefit.
    ``(5) This subsection shall be applied to monthly insurance 
benefits after any increase under subsection (w) and any applicable 
reductions and deductions under this title.
    ``(6) In any case in which an individual is entitled to benefits 
under both this section and section 223, the increase under this 
subsection shall be paid from the Federal Old-Age and Survivors 
Insurance Trust Fund.''.
    (b) Conforming Amendments.--
            (1) Section 202 of such Act (42 U.S.C. 402) is amended--
                    (A) in the last sentence of subsection (a), by 
                striking ``subsection (q) and subsection (w)'' and 
                inserting ``subsections (q), (w), and (aa)'';
                    (B) in subsection (b)(2), by striking ``subsections 
                (k)(5) and (q)'' and inserting ``subsections (k)(5), 
                (q), and (aa)'';
                    (C) in subsection (c)(2), by striking ``subsections 
                (k)(5) and (q)'' and inserting ``subsections (k)(5), 
                (q), and (aa)'';
                    (D) in subsection (d)(2), by adding at the end the 
                following: ``This paragraph shall apply subject to 
                subsection (aa).'';
                    (E) in subsection (e)(2)(A), by striking 
                ``subsection (k)(5), subsection (q), and subparagraph 
                (D) of this paragraph'' and inserting ``subsection 
                (k)(5), subsection (q), subsection (aa), and 
                subparagraph (D) of this paragraph'';
                    (F) in subsection (f)(2)(A), by striking 
                ``subsection (k)(5), subsection (q), and subparagraph 
                (D) of this paragraph'' and inserting ``subsection 
                (k)(5), subsection (q), subsection (aa), and 
                subparagraph (D) of this paragraph'';
                    (G) in subsection (g)(2), by striking ``Such'' and 
                inserting ``Except as provided in subsections (k)(5) 
                and (aa), such'';
                    (H) in subsection (h)(2)(A), by inserting ``and 
                subsection (aa)'' after ``subparagraphs (B) and (C)''; 
                and
                    (I) in section 223(a)(2), by striking ``section 
                202(q)'' and inserting ``sections 202(q) and 202(aa)''.
            (2) Section 209(k)(1) of such Act (402 U.S.C. 409(k)(1)) is 
        amended by inserting ``202(aa)(3)(C)(i)(II),'' before 
        ``203(f)(8)(B)(ii)''.

SEC. 4. EXTENSION OF CHILD'S BENEFIT FOR FULL-TIME POST-SECONDARY 
              SCHOOL STUDENTS UNDER AGE 26.

    (a) In General.--Section 202(d)(1)(B) of the Social Security Act 
(42 U.S.C. 402(d)(1)(B)) is amended to read as follows:
                    ``(B) at the time such application was filed was 
                unmarried and--
                            ``(i) had not attained the age of 18,
                            ``(ii) was a full-time elementary or 
                        secondary school student and had not attained 
                        the age of 19,
                            ``(iii) was a full-time post-secondary 
                        school student and had not attained the age of 
                        26, or
                            ``(iv) is under a disability (as defined in 
                        section 223(d)) which began before he attained 
                        the age of 22, and''.
    (b) Definition of Full-Time Post-Secondary School Student.--
            (1) In general.--Section 202(d)(7) of such Act (42 U.S.C. 
        402(d)(7)) is amended--
                    (A) in subparagraph (A)--
                            (i) by inserting ``and a `full-time post-
                        secondary school student' is an individual who 
                        is in full-time attendance as a student at a 
                        post-secondary educational institution'' before 
                        ``, as determined by the Commissioner'';
                            (ii) by inserting ``or a `full-time post-
                        secondary school student''' before ``if he is 
                        paid by his employer'';
                            (iii) by inserting ``or a post-secondary 
                        educational institution, as applicable,'' 
                        before ``at the request'';
                            (iv) by inserting ``or a `full-time post-
                        secondary school student''' before ``for the 
                        purpose of this section''; and
                            (v) by inserting ``or a full-time post-
                        secondary school student'' before ``shall be 
                        deemed''; and
                    (B) in subparagraph (B)--
                            (i) by inserting ``or a full-time post-
                        secondary school student'' after ``student'';
                            (ii) by inserting ``or a post-secondary 
                        educational institution, as applicable'' before 
                        ``at which he has been''; and
                            (iii) by striking ``an elementary or 
                        secondary school'' in each of the second and 
                        third places in which such term appears and 
                        inserting ``such a school''.
            (2) Transition from elementary or secondary school.--
        Section 202(d)(7)(B) of such Act (42 U.S.C. 402(d)(7)(B)) is 
        amended by adding at the end the following sentence: ``An 
        individual who has been in full-time attendance at an 
        elementary or secondary school shall, during a succeeding 
        period of nonattendance at such school, be deemed to be a full-
        time secondary-school student if (i) such period is 4 calendar 
        months or less, and (ii) the individual shows to the 
        satisfaction of the Commissioner that he intends to be in full-
        time attendance at a post-secondary educational institution 
        immediately following such period.''
    (c) Definition of Post-Secondary Educational Institution.--Section 
202(d)(7)(C) of such Act (42 U.S.C. 402(d)(7)(C)) is amended by adding 
at the end the following:
                            ``(iii) A `post-secondary educational 
                        institution' is a school or college or 
                        university that provides post-secondary 
                        education and--
                                    ``(I) is operated or directly 
                                supported by the United States, or by 
                                any State or local government or 
                                political subdivision thereof,
                                    ``(II) has been approved by a State 
                                or accredited by a State-recognized or 
                                nationally recognized accrediting 
                                agency or body, or
                                    ``(III) whose credits are accepted, 
                                on transfer, by not less than three 
                                institutions which are so accredited, 
                                for credit on the same basis as if 
                                transferred from an institution so 
                                accredited.''.
    (d) Conforming Amendments.--
            (1) Section 202(d)(1)(E) of such Act (42 U.S.C. 
        402(d)(1)(E)) is amended by inserting ``or a full-time post-
        secondary school student'' after ``student''.
            (2) Section 202(d)(1)(F) of such Act (42 U.S.C. 
        402(d)(1)(F)) is amended by striking ``the earlier of--'' and 
        all that follows through ``the age of 19,'' and inserting the 
        following: ``the earlier of--
                            ``(i) the first month during no part of 
                        which the child is a full-time elementary or 
                        secondary school student or a full-time post-
                        secondary school student,
                            ``(ii) the month in which the child attains 
                        the age of 19, but only if the child is not a 
                        full-time post-secondary school student during 
                        any part of such month, or
                            ``(iii) the month in which the child 
                        attains the age of 26,''.
            (3) Section 202(d)(1)(G) of such Act (42 U.S.C. 
        402(d)(1)(G)) is amended by striking ``(if later)'' and all 
        that follows through the ``the age of 19,'' and inserting the 
        following: ``(if later) the earlier of--
                            ``(i) the first month during no part of 
                        which the child is a full-time elementary or 
                        secondary school student or a full-time post-
                        secondary school student,
                            ``(ii) the month in which the child attains 
                        the age of 19, but only if the child is not a 
                        full-time post-secondary school student during 
                        any part of such month, or
                            ``(iii) the month in which the child 
                        attains the age of 26,''.
            (4) Section 202(d)(6)(A) of such Act (42 U.S.C. 
        402(d)(6)(A)) is amended to read as follows:
                    ``(A)(i) is a full-time elementary or secondary 
                school student and has not attained the age of 19,
                    ``(ii) is a full-time post-secondary school student 
                and has not attained the age of 26, or
                    ``(iii) is under a disability (as defined in 
                section 223(d)) and has not attained the age of 22, 
                or''.
            (5) Section 202(d)(6)(D) of such Act (42 U.S.C. 
        402(d)(6)(D)) is amended to read as follows:
                    ``(D) the earlier of--
                            ``(i) the first month during no part of 
                        which the child is a full-time elementary or 
                        secondary school student or a full-time post-
                        secondary school student,
                            ``(ii) the month in which the child attains 
                        the age of 19, but only if the child is not a 
                        full-time post-secondary school student during 
                        any part of such month, or
                            ``(iii) the month in which the child 
                        attains the age of 26,
                but only if he is not under a disability (as so 
                defined) in such earlier month; or''.
            (6) Section 202(d)(6)(E) of such Act (42 U.S.C. 
        402(d)(6)(E)) is amended by striking ``(if later)'' and all 
        that follows to the end and inserting the following: ``(if 
        later) the earlier of--
                            ``(i) the first month during no part of 
                        which the child is a full-time elementary or 
                        secondary school student or a full-time post-
                        secondary school student,
                            ``(ii) the month in which the child attains 
                        the age of 19, but only if the child is not a 
                        full-time post-secondary school student during 
                        any part of such month, or
                            ``(iii) the month in which the child 
                        attains the age of 26.''.
    (e) Effective Date.--The amendments made by this section apply with 
respect to applications for child's insurance benefits under section 
202(d) of the Social Security Act (42 U.S.C. 402(d)) filed in any 
calendar year after 2019.

SEC. 5. DETERMINATION OF TAXABLE WAGES AND SELF-EMPLOYMENT INCOME ABOVE 
              CONTRIBUTION AND BENEFIT BASE AFTER 2021.

    (a) Determination of Taxable Wages Above Contribution and Benefit 
Base After 2021.--
            (1) Amendments to the internal revenue code of 1986.--
        Section 3121 of the Internal Revenue Code of 1986 is amended--
                    (A) in subsection (a)(1), by inserting ``the 
                applicable percentage (determined under subsection 
                (c)(1)) of'' before ``that part of the remuneration''; 
                and
                    (B) in subsection (c), by striking ``(c) Included 
                and Excluded Service.--For purposes of this chapter, 
                if'' and inserting the following:
    ``(c) Special Rules for Wages and Employment.--
            ``(1) Applicable percentage of remuneration in determining 
        taxable wages.--For purposes of subsection (a)(1), the 
        applicable percentage for a calendar year shall be determined 
        in accordance with the following table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2022...........................       90 percent 
        Calendar year 2023...........................       80 percent 
        Calendar year 2024...........................       70 percent 
        Calendar year 2025...........................       60 percent 
        Calendar year 2026...........................       50 percent 
        Calendar year 2027...........................       40 percent 
        Calendar year 2028...........................       30 percent 
        Calendar year 2029...........................       20 percent 
        Calendar year 2030...........................       10 percent 
        Calendar years after 2031....................        0 percent.

            ``(2) Included and excluded service.--For purposes of this 
        chapter, if''.
            (2) Amendments to the social security act.--Section 209 of 
        the Social Security Act (42 U.S.C. 409) is amended--
                    (A) in subsection (a)(1)(I)--
                            (i) by inserting ``and before 2022'' after 
                        ``1974''; and
                            (ii) by inserting ``and'' after the 
                        semicolon;
                    (B) in subsection (a)(1), by adding at the end the 
                following new subparagraph:
                    ``(J) The applicable percentage (determined under 
                subsection (l)) of that part of remuneration which, 
                after remuneration (other than remuneration referred to 
                in the succeeding subsections of this section) equal to 
                the contribution and benefit base (determined under 
                section 230) with respect to employment has been paid 
                to an individual during any calendar year after 2021 
                with respect to which such contribution and benefit 
                base is effective, is paid to such individual during 
                such calendar year;''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(l) For purposes of subsection (a)(1)(J), the applicable 
percentage for a calendar year shall be determined in accordance with 
the following table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2022...........................       90 percent 
        Calendar year 2023...........................       80 percent 
        Calendar year 2024...........................       70 percent 
        Calendar year 2025...........................       60 percent 
        Calendar year 2026...........................       50 percent 
        Calendar year 2027...........................       40 percent 
        Calendar year 2028...........................       30 percent 
        Calendar year 2029...........................       20 percent 
        Calendar year 2030...........................       10 percent 
        Calendar years after 2031....................     0 percent.''.

            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to remuneration paid in calendar years 
        after 2021.
    (b) Determination of Taxable Self-Employment Income Above 
Contribution and Benefit Base After 2021.--
            (1) Amendments to the internal revenue code of 1986.--
        Section 1402 of the Internal Revenue Code of 1986 is amended--
                    (A) in subsection (b)(1), by striking ``that part 
                of the net earnings'' and all that follows through 
                ``minus'' and inserting the following: ``an amount 
                equal to the applicable percentage (as determined under 
                subsection (d)(2)) of that part of the net earnings 
                from self-employment which is in excess of the 
                difference (not to be less than zero) between (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, and''; and
                    (B) in subsection (d)--
                            (i) by striking ``(d) Employee and Wages.--
                        The term'' and inserting the following:
    ``(d) Rules and Definitions.--
            ``(1) Employee and wages.--The term''; and
                            (ii) by adding at the end the following:
            ``(2) Applicable percentage of net earnings from self-
        employment in determining taxable self-employment income.--For 
        purposes of subsection (b)(1), the applicable percentage for a 
        taxable year beginning in any calendar year referred to in such 
        paragraph shall be determined in accordance with the following 
        table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2022...........................       90 percent 
        Calendar year 2023...........................       80 percent 
        Calendar year 2024...........................       70 percent 
        Calendar year 2025...........................       60 percent 
        Calendar year 2026...........................       50 percent 
        Calendar year 2027...........................       40 percent 
        Calendar year 2028...........................       30 percent 
        Calendar year 2029...........................       20 percent 
        Calendar year 2030...........................       10 percent 
        Calendar years after 2031....................     0 percent.''.

            (2) Amendments to the social security act.--Section 211 of 
        the Social Security Act (42 U.S.C. 411) is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(I)--
                                    (I) by striking ``or'' after the 
                                semicolon; and
                                    (II) by inserting ``and before 
                                2022'' after ``1974'';
                            (ii) by redesignating paragraph (2) as 
                        paragraph (3); and
                            (iii) by inserting after paragraph (1) the 
                        following:
            ``(2) For any taxable year beginning in any calendar year 
        after 2021, an amount equal to the applicable percentage (as 
        determined under subsection (l)) of that part of net earnings 
        from self-employment which is in excess of the difference (not 
        to be less than zero) between--
                    ``(A) an amount equal to the contribution and 
                benefit base (as determined under section 230) that is 
                effective for such calendar year, and
                    ``(B) the amount of the wages paid to such 
                individual during such taxable year; or''; and
                    (B) by adding at the end the following:
    ``(l) For purposes of subsection (b)(2), the applicable percentage 
for a taxable year beginning in any calendar year referred to in such 
paragraph shall be determined in accordance with the following table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2022...........................       90 percent 
        Calendar year 2023...........................       80 percent 
        Calendar year 2024...........................       70 percent 
        Calendar year 20 25..........................       60 percent 
        Calendar year 2026...........................       50 percent 
        Calendar year 2027...........................       40 percent 
        Calendar year 2028...........................       30 percent 
        Calendar year 2029...........................       20 percent 
        Calendar year 2030...........................       10 percent 
        Calendar years after 2031....................     0 percent.''.

            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to taxable years beginning in calendar 
        years after 2021.
    (c) Computing Average Indexed Monthly Earnings.--Section 215(e) of 
the Social Security Act (42 U.S.C. 415(e)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``and'' after ``before 1975,'';
                    (B) by inserting ``and before 2022'' after ``after 
                1974''; and
                    (C) by inserting ``, and the applicable percentage 
                of the excess over an amount equal to the contribution 
                and benefit base (as determined under section 230) in 
                the case of any calendar year after 2021 with respect 
                to which such contribution and benefit base is 
                effective,'' after ``benefit base is effective,''; and
            (2) by adding at the end the following:
            ``(3) For purposes of paragraph (1), the applicable 
        percentage for a year shall be determined in accordance with 
        the following table:

                                                         The applicable
``In the case of:                                        percentage is:
        Calendar year 2022...........................       90 percent 
        Calendar year 2023...........................       80 percent 
        Calendar year 2024...........................       70 percent 
        Calendar year 2025...........................       60 percent 
        Calendar year 2026...........................       50 percent 
        Calendar year 2027...........................       40 percent 
        Calendar year 2028...........................       30 percent 
        Calendar year 2029...........................       20 percent 
        Calendar year 2030...........................       10 percent 
        Calendar years after 2031....................     0 percent.''.

    (d) Conforming Amendment.--Section 215(i)(2)(C)(i) of the Social 
Security Act (42 U.S.C. 415(i)(2)(C)(i)) is amended by striking ``the 
Commissioner's estimate of the extent to which the cost of such 
increase would be met by an increase in the contribution and benefit 
base under section 230 and the estimated amount of the increase in such 
base,''.

SEC. 6. NEW BEND POINT FOR AMOUNTS ABOVE CONTRIBUTION AND BENEFIT BASE.

    (a) In General.--Section 215(a)(1) of the Social Security Act (42 
U.S.C. 415(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (ii), by striking ``and'';
                    (B) in clause (iii), by striking the comma at the 
                end and inserting the following: ``but do not exceed 
                the amount established for purposes of this clause by 
                subparagraph (B), and''; and
                    (C) by inserting after clause (iii) the following:
                            ``(iv) 3 percent of the individual's 
                        average indexed monthly earnings to the extent 
                        that such earnings exceed the amount 
                        established for purposes of clause (iii),''; 
                        and
            (2) in subparagraph (B)--
                    (A) by inserting ``and before 2022'' after ``1979'' 
                in clause (ii);
                    (B) by redesignating clause (iii) as clause (v);
                    (C) by inserting after clause (ii) the following:
                            ``(iii) For individuals who initially 
                        become eligible for old-age or disability 
                        insurance benefits, or who die (before becoming 
                        eligible for such benefits), in the calendar 
                        year 2022--
                                    ``(I) the amounts established for 
                                purposes of clauses (i) and (ii) of 
                                subparagraph (A) shall be the amounts 
                                so established under clause (ii) of 
                                this subparagraph for such calendar 
                                year; and
                                    ``(II) the amount established for 
                                purposes of clause (iii) of 
                                subparagraph (A) shall be the amount of 
                                the contribution and benefit base with 
                                respect to remuneration paid (and 
                                taxable years beginning) in calendar 
                                year 2022.
                            ``(iv) For individuals who initially become 
                        eligible for old-age or disability insurance 
                        benefits, or who die (before becoming eligible 
                        for such benefits), in any calendar year after 
                        2022, the amount so established shall equal the 
                        product of the corresponding amount established 
                        with respect to the calendar year 2022 under 
                        clause (iii) of this subparagraph and the 
                        quotient obtained by dividing--
                                    ``(I) 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, by
                                    ``(II) the national average wage 
                                index (as so defined) for 2020.''; and
                    (D) in clause (v), as so redesignated by 
                subparagraph (A) of this paragraph, by inserting ``and 
                clause (iv)'' after ``clause (ii)''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to individuals who initially become eligible (within 
the meaning of section 215(a)(3)(B)) for old-age or disability 
insurance benefits under title II of the Social Security Act, or who 
die (before becoming eligible for such benefits), in any calendar year 
after 2021.

SEC. 7. INCREASE IN EMPLOYMENT TAX RATE.

    (a) Wages.--
            (1) Employees.--Subsection (a) of section 3101 of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(a) Old-Age, Survivors, and Disability Insurance.--
            ``(1) In general.--In addition to other taxes, there is 
        hereby imposed on the income of every individual a tax equal to 
        the applicable percentage of the wages (as defined in section 
        3121(a)) received by him with respect to employment (as defined 
        in section 3121(b)).
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the term `applicable percentage' means the percentage 
        determined under the following table:

                                                         The applicable
``In case of wages received during:                          percentage
                                                              shall be:
         2022........................................     6.25 percent 
         2023........................................     6.30 percent 
         2024........................................     6.35 percent 
         2025........................................     6.40 percent 
         2026........................................     6.45 percent 
         2027 or thereafter..........................  6.50 percent.''.

            (2) Employers.--Subsection (a) of section 3111 of such Code 
        is amended to read as follows:
    ``(a) Old-Age, Survivors, and Disability Insurance.--
            ``(1) In general.--In addition to other taxes, there is 
        hereby imposed on every employer an excise tax, with respect to 
        having individuals in his employ, equal to the applicable 
        percentage of the wages (as defined in section 3121(a)) paid by 
        him with respect to employment (as defined in section 3121(b)).
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the term `applicable percentage' means the percentage 
        determined under the following table:

                                                         The applicable
``In case of a taxable year                                  percentage
 beginning during calendar year:                              shall be:
         2022........................................     6.25 percent 
         2023........................................     6.30 percent 
         2024........................................     6.35 percent 
         2025........................................     6.40 percent 
         2026........................................     6.45 percent 
         2027 or thereafter..........................  6.50 percent.''.

    (b) Self-Employment.--Subsection (a) of section 1401 of such Code 
is amended to read as follows:
    ``(a) Old-Age, Survivors, and Disability Insurance.--
            ``(1) In addition to other taxes, there shall be imposed 
        for each taxable year, on the self-employment income of every 
        individual, a tax equal to the applicable percentage of the 
        amount of the self-employment income for such taxable year.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the term `applicable percentage' means the percentage 
        determined under the following table:

                                                         The applicable
``In case of a taxable year                                  percentage
 beginning during calendar year:                              shall be:
         2022........................................     12.5 percent 
         2023........................................     12.6 percent 
         2024........................................     12.7 percent 
         2025........................................     12.8 percent 
         2026........................................     12.9 percent 
         2027 or thereafter..........................  13.0 percent.''.

    (c) Effective Date.--The amendments made by this section shall 
apply with respect to remuneration received, and taxable years 
beginning after, December 31, 2021.

SEC. 8. NON-APPLICATION OF INCREASE IN SOCIAL SECURITY BENEFITS FOR 
              MEANS-TESTED PROGRAMS.

    Any increase in monthly insurance benefits under title II of the 
Social Security Act as a result of the amendments made by this Act 
shall not be regarded as income or resources for any month after 
December 2021, for purposes of determining the eligibility of the 
recipient (or the recipient's spouse or family) for benefits or 
assistance, or the amount or extent of benefits or assistance, under 
any Federal program or under any State or local program financed in 
whole or in part with Federal funds.
                                 <all>