What does Preamble of Social Security Expansion Act do?

This bill is formally titled 'To enhance Social Security benefits and ensure the long-term solvency of the Social Security program.'

What does ACROSS-THE-BOARD BENEFIT INCREASE. of Social Security Expansion Act do?

This section amends the Social Security Act to increase benefits The first bend point percentage is increased from 90 percent to 95 percent A new clause is added to adjust the bend point amount for individuals eligible for old-age or disability insurance benefits after 2025 The amendments take effect on January 1, 2026, and apply to monthly insurance benefits payable under title II of the Social Security Act The Commissioner of Social Security shall recompute primary insurance amounts to carry out the amendments

What does COMPUTATION OF COST-OF-LIVING INCREASES. of Social Security Expansion Act do?

This section amends Section 215(i)(1) of the Social Security Act to define 'Consumer Price Index' as the Consumer Price Index for Elderly Consumers (CPI-E). It also amends Section 215(i)(1) as it existed in December 1978 to include the same CPI-E definition. Section 215(i)(4) of the Social Security Act is amended to include references to section 9001 and section 3 of the Social Security Expansion Act. The Bureau of Labor Statistics is directed to publish the Consumer Price Index for Elderly Consumers monthly, starting in July of the year following enactment. The amendments made by subsection (a) apply to cost-of-living computation quarters ending on or after September 30 of the second calendar year following enactment. Other laws adjusting amounts based on Social Security benefit changes will not consider the amendments made by this section.

What does INCREASE IN MINIMUM BENEFIT FOR LIFETIME LOW EARNERS BASED ON of Social Security Expansion Act do?

This section amends the Social Security Act to increase the minimum benefit for lifetime low earners based on years in the workforce. The amendment applies to individuals who become eligible for old-age insurance benefits or disability insurance benefits after 2025. A new alternative minimum amount is determined based on the number of years of work, with a percentage increase for each additional year of work.

What does EXTENDED BENEFIT ELIGIBILITY FOR CHILDREN WHO ARE FULL-TIME of Social Security Expansion Act do?

This section amends the Social Security Act to extend benefit eligibility for children who are full-time students. The amendments apply to child's insurance benefits payable for months beginning on or after January 1, 2026. The section also amends the Railroad Retirement Act of 1974 to extend benefit eligibility for children who are full-time students. The amendments to the Railroad Retirement Act apply to benefits payable for months beginning on or after January 1, 2026.

What does PAYROLL TAX ON REMUNERATION UP TO CONTRIBUTION AND BENEFIT BASE of Social Security Expansion Act do?

This section amends the Internal Revenue Code of 1986 regarding payroll tax on remuneration. It changes the contribution and benefit base for taxes imposed by sections 3101(a) and 3111(a). The amendment applies to remuneration exceeding the contribution and benefit base but not exceeding $250,000.

What does TAX ON NET EARNINGS FROM SELF-EMPLOYMENT UP TO CONTRIBUTION AND of Social Security Expansion Act do?

This section amends paragraph (1) of section 1402(b) of the Internal Revenue Code of 1986. The amendment modifies the calculation of the tax imposed by section 1401(a) on net earnings from self-employment. The calculation is dependent on whether the contribution and benefit base is less than $250,000. The amendments 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.

What does TAX ON INVESTMENT GAIN. of Social Security Expansion Act do?

This section amends section 1411 of the Internal Revenue Code of 1986, increasing the tax rate on investment income from 3.8% to 16.2%. The heading for chapter 2A of the Internal Revenue Code is amended to reflect the increased tax, changing it to 'ADDITIONAL TAX ON UNEARNED INCOME IN LIEU OF SOCIAL SECURITY AND MEDICARE TAXES'. The definition of net investment income is modified to exclude income derived in the ordinary course of a trade or business, applying rules similar to those in section 469(c). A deduction for net operating losses is denied under section 1411(c)(1)(B). Paragraphs (2), (3), and (4) of section 1411(c) are struck, and paragraphs (5) and (6) are redesignated as (2) and (3) respectively. The special rule in section 1411(c)(3) now excludes items taken into account in determining self-employment income or wages. These amendments apply to taxable years beginning after the date of enactment of this Act.

What does SOCIAL SECURITY TRUST FUND ESTABLISHED. of Social Security Expansion Act do?

This section establishes the Social Security Trust Fund, consolidating the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund. The Social Security Trust Fund will consist of securities and amounts from the predecessor funds, as well as gifts, bequests, and appropriated amounts. The Secretary of the Treasury is authorized to transfer funds to the Social Security Trust Fund and invest its assets. Conforming amendments are made to various sections of the Social Security Act and other laws to replace references to the predecessor funds with references to the Social Security Trust Fund. A rule of construction is provided to deem references to the predecessor funds as references to the Social Security Trust Fund, effective January 1 of the first calendar year after enactment.

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Social Security Expansion Act

Last updated: 2/27/2025 · Introduced: 2/27/2025

Author: Val Hoyle (D-OR)

TL;DR (AI)

The Social Security Act is amended to increase benefits, with the first bend point percentage rising from 90 percent to 95 percent.
The Consumer Price Index used to compute cost-of-living increases is redefined as the Consumer Price Index for Elderly Consumers.
The minimum benefit for lifetime low earners is increased based on years in the workforce, with a percentage increase for each additional year of work.
Benefit eligibility is extended for children who are full-time students, applying to child's insurance benefits payable for months beginning on or after January 1, 2026.
The payroll tax on remuneration is amended, with taxes imposed on remuneration exceeding the contribution and benefit base but not exceeding $250,000.

119th Congressin committeeS. 4196(In Committee)Official page

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Other Sections

Includes provisions on preamble, across-the-board benefit increase., and 7 more.

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