Safeguarding American Families and Expanding Social Security Act of 2021
Bill: S.3070 | Sponsor: Sen. Schatz, Brian (D-HI)
Policy area: Social Welfare

Summary:
Safeguarding American Families and Expanding Social Security Act of 2021
This bill makes various changes to Social Security benefits, including phasing out the cap on earnings subject to Social Security payroll taxes (currently $142,800 for 2021) and revising the method of calculating Social Security benefits to account for the additional earnings subject to the taxes.

To improve the retirement security of American families by increasing 
  Social Security benefits for current and future beneficiaries while 
        making Social Security stronger for future generations.

    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 ``Safeguarding 
American Families and Expanding Social Security Act of 2021''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Determination of taxable wages and self-employment income above 
                            contribution and benefit base after 2021.
Sec. 3. Adjustments to primary insurance amount formula and inclusion 
                            of surplus earnings for benefit 
                            determinations.
Sec. 4. Increase in benefit amounts for long-term eligible individuals.
Sec. 5. Computation of cost-of-living increases for Social Security 
                            benefits; consumer price index for elderly 
                            consumers.
Sec. 6. Deemed wages for caregivers of dependent relatives.
Sec. 7. Increase in minimum benefit for lifetime low earners based on 
                            years in the workforce.
Sec. 8. Elimination of disability waiting period for disability 
                            insurance benefits and surviving spouse 
                            benefits.
Sec. 9. Tax on investment gain.
Sec. 10. Holding SSI, Medicaid, and CHIP beneficiaries harmless.

SEC. 2. 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 equal to--
                    ``(A) for 2022, 80 percent;
                    ``(B) for 2023 through 2025, the applicable 
                percentage under this paragraph for the previous year, 
                decreased by 20 percentage points; and
                    ``(C) for 2026 and each year thereafter, 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) in subparagraph (I)--
                                    (I) by inserting ``and before 
                                2022'' after ``1974''; and
                                    (II) by inserting ``and'' after the 
                                semicolon;
                            (ii) 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
                    (B) 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 equal to--
            ``(1) for 2022, 80 percent;
            ``(2) for 2023 through 2025, the applicable percentage 
        under this subsection for the previous year, decreased by 20 
        percentage points; and
            ``(3) for 2026 and each year thereafter, 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 
        subsection shall be equal to--
                    ``(A) for 2022, 80 percent;
                    ``(B) for 2023 through 2025, the applicable 
                percentage under this paragraph for the previous year, 
                decreased by 20 percentage points; and
                    ``(C) for 2026 and each year thereafter, 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 equal to--
            ``(1) for 2022, 80 percent;
            ``(2) for 2023 through 2025, the applicable percentage 
        under this subsection for the previous year, decreased by 20 
        percentage points; and
            ``(3) for 2026 and each year thereafter, 0 percent.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to taxable years beginning after 
        calendar year 2021.

SEC. 3. ADJUSTMENTS TO PRIMARY INSURANCE AMOUNT FORMULA AND INCLUSION 
              OF SURPLUS EARNINGS FOR BENEFIT DETERMINATIONS.

    (a) Increase in Percentage Factor for Lowest Portion of Earnings 
Used to Determine Primary Insurance Amounts.--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) Inclusion of Surplus Average Indexed Monthly Earnings in 
Determination of Primary Insurance Amounts.--
            (1) In general.--Section 215(a)(1)(A) of the Social 
        Security Act (42 U.S.C. 415(a)(1)(A)) is amended--
                    (A) in clauses (i), (ii), and (iii), by inserting 
                ``basic'' before ``average indexed monthly earnings'' 
                each place it appears;
                    (B) in clause (ii), by striking ``and'' at the end;
                    (C) in clause (iii), by adding ``and'' at the end; 
                and
                    (D) by inserting after clause (iii) the following 
                new clause:
            ``(iv) 5 percent of the individual's surplus average 
        indexed monthly earnings,''.
            (2) Bend point adjustments.--Section 215(a)(1)(B) of such 
        Act (42 U.S.C. 415(a)(1)(B)) is amended--
                    (A) in clause (i), by inserting ``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, 
                the amount established for purposes of clause (ii) of 
                subparagraph (A) shall be $6,300.'' after the period;
                    (B) in clause (ii)--
                            (i) by redesignating subclauses (I) and 
                        (II) as items (aa) and (bb), respectively;
                            (ii) by striking ``For individuals'' and 
                        inserting ``(I) Subject to subclause (II), for 
                        individuals''; and
                            (iii) by adding at the end the following 
                        new subclause:
            ``(II) 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 established for purposes of clause (ii) 
        of subparagraph (A) shall equal the product of the amount 
        established with respect to calendar year 2022 under clause (i) 
        of this subparagraph and the quotient obtained by dividing--
                    ``(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, by
                    ``(bb) the national average wage index (as so 
                defined) for 2020.'';
                    (C) by redesignating clause (iii) as clause (iv); 
                and
                    (D) by inserting after clause (ii) the following 
                new clause:
            ``(iii) For individuals who initially become eligible for 
        old-age or disability insurance benefits, or who die (before 
        becoming eligible for such benefits) in any calendar year after 
        2026, the amount determined under clause (ii) of this 
        subparagraph for purposes of subparagraph (A)(i) for such 
        calendar year shall be increased by--
                    ``(I) for calendar year 2027, 1 percent;
                    ``(II) for each of calendar years 2028 through 
                2040, the percent determined under this clause for the 
                preceding year increased by 1 percentage point; and
                    ``(III) for calendar year 2041 and each year 
                thereafter, 15 percent.''.
            (3) Recomputation of benefits for existing beneficiaries.--
        Section 215(f) of the Social Security Act (42 U.S.C. 415(f)) is 
        amended by adding at the end the following new paragraph:
            ``(10) Recomputation of primary insurance amount for 
        individuals who became eligible for benefits before 2022.--
                    ``(A) The Commissioner of Social Security shall 
                recompute the primary insurance amounts applicable to 
                beneficiaries whose benefits are based on a primary 
                insurance amount that was computed under this section 
                effective prior to January 2022. Such recomputation 
                shall be effective January 2022.
                    ``(B) In recomputing the primary insurance amount 
                applicable to a beneficiary under this paragraph, the 
                Commissioner of Social Security shall calculate the 
                primary insurance amount of the individual under 
                subsection (a)(1) as in effect on the date that such 
                primary insurance amount was initially computed, except 
                that the Commissioner shall substitute for the amount 
                that applied under subparagraph (B)(ii) of such 
                subsection on such date an amount equal to the product 
                of--
                            ``(i) the amount that applied under such 
                        subparagraph on such date; and
                            ``(ii) the ratio of--
                                    ``(I) 6,300; to
                                    ``(II) 6,002.
                    ``(C) Each amount determined under subparagraph (B) 
                shall be rounded to the nearest $1, except that any 
                amount so established which is a multiple of $0.50 but 
                not of $1 shall be rounded to the next higher $1.
                    ``(D) If a primary insurance amount applicable to a 
                beneficiary, as recomputed under this paragraph, is 
                lower than the primary insurance amount applicable to 
                such beneficiary as it was originally computed, such 
                higher primary insurance amount shall continue to apply 
                to such beneficiary.''.
    (c) Basic AIME and Surplus AIME.--
            (1) Basic aime.--Section 215(b)(1) of such Act (42 U.S.C. 
        415(b)(1)) is amended--
                    (A) by inserting ``basic'' before ``average''; and
                    (B) in subparagraph (A), by striking ``paragraph 
                (3)'' and inserting ``paragraph (3)(A)'' and by 
                inserting before the comma the following: ``to the 
                extent such total does not exceed the contribution and 
                benefit base for the applicable year''.
            (2) Surplus aime.--
                    (A) In general.--Section 215(b)(1) of such Act (as 
                amended by paragraph (1)) is amended--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as clauses (i) and (ii), respectively;
                            (ii) by striking ``An individual's'' and 
                        inserting ``(A) An individual's''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
    ``(B)(i) An individual's surplus average indexed monthly earnings 
shall be equal to the quotient obtained by dividing--
            ``(I) the total (after adjustment under paragraph (3)(B)) 
        of such individual's surplus earnings (determined under clause 
        (ii)) for such individual's benefit computation years 
        (determined under paragraph (2)), by
            ``(II) the number of months in those years.
    ``(ii) For purposes of clause (i) and paragraph (3)(B), an 
individual's surplus earnings for a benefit computation year are the 
total of such individual's wages paid in and self-employment income 
credited to such benefit computation year, to the extent such total 
(before adjustment under paragraph (3)(B)) exceeds the contribution and 
benefit base for such year.''.
                    (B) Conforming amendment.--The heading for section 
                215(b) of such Act is amended by striking ``Average 
                Indexed Monthly Earnings'' and inserting ``Basic 
                Average Indexed Monthly Earnings; Surplus Average 
                Indexed Monthly Earnings''.
            (3) Adjustment of surplus earnings for purposes of 
        determining surplus aime.--Section 215(b)(3) of such Act (42 
        U.S.C. 415(b)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``subparagraph (B)'' and 
                        inserting ``subparagraph (C)'' and;
                            (ii) by inserting ``and determination of 
                        basic average indexed monthly income under 
                        paragraph (1)(A)'' after ``paragraph (2)'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
    ``(B) For purposes of determining under paragraph (1)(B) an 
individual's surplus average indexed monthly earnings, the individual's 
surplus earnings for a benefit computation year shall be deemed to be 
equal to the product of--
            ``(i) the individual's surplus earnings for such year (as 
        determined without regard to this subparagraph), and
            ``(ii) the quotient described in subparagraph (A)(ii).''.
    (d) 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) of the Social Security Act) 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 2026.

SEC. 4. INCREASE IN BENEFIT AMOUNTS FOR LONG-TERM ELIGIBLE INDIVIDUALS.

    (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 for Long-term Eligible 
Individuals.--
            ``(1) In general.--The amount of a monthly benefit which is 
        payable to an individual for a month under subsections (a) 
        through (h) or section 223(a) (as determined without regard to 
        this subsection) shall be increased by 5 percent if the 
        individual is a long-term eligible individual during any part 
        of such month.
            ``(2) Long-term eligible individual defined.--
                    ``(A) In general.--The term `long-term eligible 
                individual' means an individual who--
                            ``(i) is entitled to a monthly benefit 
                        under subsections (a) through (h) or section 
                        223(a); and
                            ``(ii) has attained 82 years of age or 240 
                        benefit months (as defined in subparagraph 
                        (B)), whichever is earlier.
                    ``(B) Benefit month.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), the term `benefit month' 
                        means a month for which an individual--
                                    ``(I) has attained age 19; and
                                    ``(II) is entitled to a monthly 
                                benefit under subsections (a) through 
                                (h) of section 202 or section 223(a).
                            ``(ii) Exclusions.--Such term excludes any 
                        month in which an individual is--
                                    ``(I) entitled to a benefit under 
                                this section or section 223(a) that is 
                                not payable or reduced to zero by 
                                application of subsection (k), (n), 
                                (t), (u), (v), or (x) of this section; 
                                or
                                    ``(II) subject to a penalty under 
                                section 1129A.
            ``(3) Disregard of increase for purposes of family 
        maximum.--The amount of any increase under this subsection to a 
        monthly benefit amount of a long-term eligible individual shall 
        be disregarded for purposes of applying section 203(a).''.
    (b) Conforming Amendments.--
            (1) Section 202 of the Social Security Act (42 U.S.C. 402) 
        is amended--
                    (A) in subsection (a), by striking ``subsection (q) 
                and subsection (w)'' and inserting ``subsections (q), 
                (w), and (aa)'';
                    (B) in subsections (b)(2) and (c)(2), by striking 
                ``subsections (k)(5) and (q)'' and inserting 
                ``subsections (k)(5), (q), and (aa)'';
                    (C) in subsection (d)(2), by striking ``Such 
                child's'' each place it appears and inserting ``Subject 
                to subsection (aa), such child's'';
                    (D) in subsections (e)(2)(A) and (f)(2)(A), by 
                inserting ``subsection (aa),'' after ``subsection 
                (q),'';
                    (E) in subsection (g)(2), by striking ``Such 
                mother's or father's'' and inserting ``Subject to 
                subsection (aa), such mother's or father's''; and
                    (F) in subsection (h)(2)(A), by inserting 
                ``subsection (aa) and'' before ``subparagraphs (B) and 
                (C)''.
            (2) Section 223(a)(2) of the Social Security Act (42 U.S.C. 
        423(a)(2)) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``section 202(q)'' and inserting ``subsections 
                (q) and (aa) of section 202''; and
                    (B) in subparagraph (B), by striking ``clause 
                (ii)'' and inserting ``subdivision (ii) or (iii) of the 
                matter following subparagraph (E)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to benefits payable for months in any calendar year after 2026.

SEC. 5. COMPUTATION OF COST-OF-LIVING INCREASES FOR SOCIAL SECURITY 
              BENEFITS; CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS.

    (a) Computation of Cost-of-Living Increases.--
            (1) In general.--Section 215(i) of the Social Security Act 
        (42 U.S.C. 415(i)) is amended--
                    (A) in paragraph (1)(G), by inserting before the 
                period the following: ``, and, with respect to any 
                monthly insurance benefit payable under this title, 
                effective for adjustments under this subsection to the 
                primary insurance amount on which such benefit is based 
                (or to any such benefit under section 227 or 228), the 
                applicable Consumer Price Index shall be the Consumer 
                Price Index for Elderly Consumers and such primary 
                insurance amount shall be adjusted under this 
                subsection using such Index''; and
                    (B) in paragraph (4)--
                            (i) by striking ``and by section 9001'' and 
                        inserting ``, by section 9001''; and
                            (ii) by striking ``1986,'' and inserting 
                        ``1986, and by section 5(a) of the Safeguarding 
                        American Families and Expanding Social Security 
                        Act of 2021,''.
            (2) Conforming amendments in applicable former law.--
        Section 215(i)(1)(C) of the Social Security Act, as in effect 
        in December 1978 and applied in certain cases under the 
        provisions of such Act in effect after December 1978, is 
        amended by inserting before the period the following: ``, and, 
        with respect to any monthly insurance benefit payable under 
        this title, effective for adjustments under this subsection to 
        the primary insurance amount on which such benefit is based (or 
        to any such benefit under section 227 or 228), the applicable 
        Consumer Price Index shall be the Consumer Price Index for 
        Elderly Consumers and such primary insurance amount shall be 
        adjusted under this subsection using such Index''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to determinations made by the Commissioner of 
        Social Security under section 215(i)(2) of the Social Security 
        Act (42 U.S.C. 415(i)(2)) with respect to cost-of-living 
        computation quarters ending on or after September 30, 2022.
    (b) Consumer Price Index for Elderly Consumers.--
            (1) In general.--The Bureau of Labor Statistics of the 
        Department of Labor shall prepare and publish an index for each 
        calendar month to be known as the ``Consumer Price Index for 
        Elderly Consumers'' that indicates changes over time in 
        expenditures for consumption which are typical for individuals 
        in the United States who have attained early retirement age (as 
        defined under section 216(l)(2) of the Social Security Act (42 
        U.S.C. 416(l)(2)) for purposes of an old-age, wife's, or 
        husband's insurance benefit).
            (2) Effective date.--Paragraph (1) shall apply with respect 
        to calendar months ending on or after June 30 of the calendar 
        year in which this Act is enacted.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out the 
        provisions of this subsection.

SEC. 6. DEEMED WAGES FOR CAREGIVERS OF DEPENDENT RELATIVES.

    (a) In General.--Title II of the Social Security Act is amended by 
adding after section 234 (42 U.S.C. 434) the following new section:

          ``deemed wages for caregivers of dependent relatives

    ``Sec. 235.  (a) Definitions.--For purposes of this section--
            ``(1)(A) Subject to subparagraph (B), the term `qualifying 
        month' means, in connection with an individual, any month--
                    ``(i) beginning after the date of enactment of the 
                Safeguarding American Families and Expanding Social 
                Security Act of 2021; and
                    ``(ii) during which such individual was engaged for 
                not less than 80 hours in providing care to a dependent 
                relative without monetary compensation.
            ``(B) The term `qualifying month' does not include any 
        month ending after the date on which such individual attains 
        retirement age (as defined in section 216(l)).
            ``(C) For purposes of subparagraph (A)(ii), assistance 
        provided to a family caregiver of an eligible veteran under 
        section 1720G of title 38, United States Code, shall not be 
        considered monetary compensation for providing care to such 
        eligible veteran.
            ``(2) The term `dependent relative' means, in connection 
        with an individual--
                    ``(A) a child, grandchild, sibling, niece, or 
                nephew (of such individual or such individual's spouse 
                or domestic partner), or a child to which the 
                individual or the individual's spouse or domestic 
                partner is standing in loco parentis, who is under the 
                age of 16; or
                    ``(B) a child, grandchild, niece, or nephew (of 
                such individual or such individual's spouse or domestic 
                partner), a child to which the individual or the 
                individual's spouse or domestic partner is standing in 
                loco parentis, a parent, grandparent, sibling, aunt, or 
                uncle (of such individual or his or her spouse or 
                domestic partner), or such individual's spouse or 
                domestic partner, if such child, grandchild, niece, 
                nephew, parent, grandparent, sibling, aunt, uncle, 
                spouse, or domestic partner is a chronically dependent 
                individual.
            ``(3)(A) The term `chronically dependent individual' means 
        an individual who--
                    ``(i) is dependent on a daily basis on verbal 
                reminding, physical cueing, supervision, or other 
                assistance provided to the individual by another person 
                in the performance of at least two of the activities of 
                daily living (described in subparagraph (B)) or 
                instrumental activities of daily living (described in 
                subparagraph (C)); and
                    ``(ii) without the assistance described in clause 
                (i), could not perform such activities of daily living 
                or instrumental activities of daily living.
            ``(B) The `activities of daily living' referred to in 
        subparagraph (A) means basic personal everyday activities, 
        including--
                    ``(i) eating;
                    ``(ii) bathing;
                    ``(iii) dressing;
                    ``(iv) toileting; and
                    ``(v) transferring in and out of a bed or in and 
                out of a chair.
            ``(C) The `instrumental activities of daily living' 
        referred to in subparagraph (A) means activities related to 
        living independently in the community, including--
                    ``(i) meal planning and preparation;
                    ``(ii) managing finances;
                    ``(iii) shopping for food, clothing, or other 
                essential items;
                    ``(iv) performing essential household chores;
                    ``(v) communicating by phone or other form of 
                media; and
                    ``(vi) traveling around and participating in the 
                community.
    ``(b) Deemed Wages of Caregiver.--(1)(A) For purposes of 
determining entitlement to and the amount of any monthly benefit for 
any month after December 2019, or entitlement to and the amount of any 
lump-sum death payment in the case of a death after such month, payable 
under this title on the basis of the wages and self-employment income 
of any individual, and for purposes of section 216(i)(3), such 
individual shall be deemed to have been paid during each qualifying 
month (in addition to wages or self-employment income actually paid to 
or derived by such individual during such month) at an amount per month 
equal to--
            ``(i) in the case of a qualifying month during which no 
        wages or self-employment income were actually paid to or 
        derived by such individual--
                    ``(I) 50 percent of the national average wage index 
                (as defined in section 209(k)(1)) for the second 
                calendar year preceding the calendar year in which such 
                month occurs; or
                    ``(II) if the dependent relative to which the 
                individual provided care during such month was, at any 
                time during such month, a child under the age of 6 or a 
                chronically dependent individual, 100 percent of the 
                national average wage index (as defined in section 
                209(k)(1)) for the second calendar year preceding the 
                calendar year in which such month occurs;
            ``(ii) in the case of a qualifying month in which an 
        individual engages in employment or any trade or business 
        carried on by the individual or by a partnership of which the 
        individual is a member for not more than 80 hours, 50 percent 
        of the national average wage index (as defined in section 
        209(k)(1)) for the second calendar year preceding the calendar 
        year in which such month occurs; and
            ``(iii) in the case of any other qualifying month, the 
        excess of the amount determined under clause (i) over \1/2\ of 
        the wages or self-employment income actually paid to or derived 
        by such individual during such month.
    ``(B) In any case in which there are more than 120 qualifying 
months for an individual, only the last 60 of such months shall be 
taken into account for purposes of this section.
    ``(2) Paragraph (1) shall not be applicable in the case of any 
monthly benefit or lump-sum death payment if a larger such benefit or 
payment, as the case may be, would be payable without its application.
    ``(c) Rules and Regulations.--
            ``(1) Not later than one year after the date of the 
        enactment of this section, the Commissioner of Social Security 
        shall promulgate such regulations as are necessary to carry out 
        this section and to prevent fraud and abuse with respect to the 
        benefits under this section, including regulations establishing 
        procedures for the application and certification requirements 
        described in paragraph (2).
            ``(2) A qualifying month shall not be taken into account 
        under this section with respect to an individual unless--
                    ``(A) the individual submits to the Commissioner of 
                Social Security an application for benefits under this 
                section that includes--
                            ``(i) the name and identifying information 
                        of the dependent relative with respect to whom 
                        the individual was engaged in providing care 
                        during such month;
                            ``(ii) if the dependent relative is not a 
                        child under the age of 16, documentation from 
                        the physician of the dependent relative 
                        explaining why the dependent relative is a 
                        chronically dependent individual; and
                            ``(iii) such other information as the 
                        Commissioner may require to verify the status 
                        of the dependent relative; and
                    ``(B) for every qualifying month or period of up to 
                12 consecutive qualifying months that occurs after the 
                first period of 12 consecutive qualifying months, the 
                individual certifies, in such form and manner as the 
                Commissioner shall require, that the information 
                provided in the individual's application for benefits 
                under this section has not changed.''.
    (b) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C. 
409(k)(1)) is amended--
            (1) by striking ``and'' before ``230(b)(2)'' the first time 
        it appears; and
            (2) by inserting ``and 235(b)(1)(A)(i),'' after ``1977),''.

SEC. 7. 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 2021, 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 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 `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 2021' means the 
        annual poverty guideline for 2019 (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 2021 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. 8. ELIMINATION OF DISABILITY WAITING PERIOD FOR DISABILITY 
              INSURANCE BENEFITS AND SURVIVING SPOUSE BENEFITS.

    (a) Elimination of Waiting Period for Disability Insurance 
Benefits.--Section 223 of the Social Security Act (42 U.S.C. 423), as 
amended by section 4(b)(2), is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), in the matter following 
                subparagraph (E)--
                            (i) by striking ``disability insurance 
                        benefit (i) for each month'' and all that 
                        follows through ``, or (iii)'' and inserting 
                        ``disability insurance benefit''; and
                            (ii) by striking ``, but only if'' and all 
                        that follows through ``under such disability''; 
                        and
                    (B) in paragraph (2), by striking ``as though he 
                had attained age 62 in--'' and all that follows through 
                ``such disability insurance benefits,'' and inserting 
                ``as though the individual had attained age 62 in the 
                first month for which the individual becomes entitled 
                to such disability insurance benefits,''; and
            (2) in subsection (c)--
                    (A) in the subsection header, by striking 
                ``Definitions of Insured Status and Waiting Period'' 
                and inserting ``Definition of Insured Status''; and
                    (B) by striking paragraph (2).
    (b) Elimination of Waiting Period for Surviving Spouse and 
Surviving Divorced Spouse Benefits.--Section 202 of the Social Security 
Act (42 U.S.C. 402) is amended--
            (1) in subsection (e)--
                    (A) in paragraph (1), in the matter following 
                subparagraph (D), by striking ``beginning with--'' and 
                all that follows through ``on such basis terminated,'' 
                and inserting ``beginning with the first month in which 
                she becomes so entitled to such insurance benefits'';
                    (B) by striking paragraph (5); and
                    (C) by redesignating paragraphs (6) through (8) as 
                paragraphs (5) through (7); and
            (2) in subsection (f)--
                    (A) in paragraph (1), in the matter following 
                subparagraph (D), by striking ``beginning with--'' and 
                all that follows through ``on such basis terminated,'' 
                and inserting ``beginning with the first month in which 
                he becomes so entitled to such insurance benefits'';
                    (B) by striking paragraph (5); and
                    (C) by redesignating paragraphs (6) through (8) as 
                paragraphs (5) through (7).
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to applications for benefits filed on or after the 
date of the enactment of this Act.

SEC. 9. TAX ON INVESTMENT GAIN.

    (a) In General.--Subsection (a) of section 1411 of the Internal 
Revenue Code of 1986 is amended by striking ``3.8 percent'' each place 
it appears and inserting ``6.8 percent''.
    (b) Conforming Amendment.--The heading for chapter 2A of the 
Internal Revenue Code of 1986 is amended by inserting ``AND SOCIAL 
SECURITY'' after ``MEDICARE''.
    (c) Trust Funds.--
            (1) Technical amendments.--Section 201 of the Social 
        Security Act (42 U.S.C. 401) is amended--
                    (A) in subsection (a)--
                            (i) by striking ``clause'' each place it 
                        appears and inserting ``paragraph''; and
                            (ii) in the flush text at the end, by 
                        striking ``clauses'' each place it appears and 
                        inserting ``paragraphs''; and
                    (B) in subsection (g)(2), by striking ``clause'' 
                each place it appears and inserting ``paragraph''.
            (2) Federal old-age and survivors insurance trust fund.--
        Subsection (a) of section 201 of the Social Security Act (42 
        U.S.C. 401), as amended by paragraph (1), is amended--
                    (A) in paragraph (4), by striking the period at the 
                end and inserting ``; and'';
                    (B) by inserting after paragraph (4) the following 
                new paragraph:
    ``(5) 44.1 percent of the taxes imposed under section 1411 of the 
Internal Revenue Code of 1986.''; and
                    (C) in the flush matter at the end, by striking 
                ``paragraphs (3) and (4)'' each place it appears and 
                inserting ``paragraphs (3), (4), and (5)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 10. HOLDING SSI, MEDICAID, AND CHIP BENEFICIARIES HARMLESS.

    For purposes of determining the income of an individual to 
establish eligibility for, and the amount of, benefits payable under 
title XVI of the Social Security Act, eligibility for medical 
assistance under the State plan under title XIX (or a waiver of such 
plan), or eligibility for child health assistance under the State child 
health plan under title XXI (or a waiver of the plan), the amount of 
any benefit to which the individual is entitled under title II of such 
Act shall be deemed not to exceed the amount of the benefit that would 
be determined for such individual under such title as in effect on the 
day before the date of the enactment of this Act.
                                 <all>