Social Security Expansion Act

The Social Security Expansion Act would make several changes to how Social Security benefits are calculated and funded. The bill would increase benefits for lower-income earners by adjusting the formula used to calculate primary insurance amounts and bend points. It would also establish a new minimum benefit for certain low earners, adjust cost-of-living calculations to reflect spending patterns of those over 62, and allow full-time student children of deceased or disabled workers to receive benefits until age 22 instead of earlier cutoff ages.

To fund these expansions, the bill would extend Social Security payroll taxes to wages and self-employment income above $250,000, compared to the current cap of $176,100 in 2025. The bill would also increase the net investment income tax and subject active business income to this tax. Additionally, the bill would combine the separate Old-Age and Survivors Insurance Trust Fund and Disability Insurance Trust Fund into a single Social Security Trust Fund.

This bill has been introduced in the Senate and referred to committee. It has not yet been voted on by the full chamber.