What This Bill Does
This bill increases Social Security benefits and creates new revenue sources to support the program. It boosts monthly payments to current and future beneficiaries, extends eligibility for student dependents, and adds new taxes on high earners and investment income to fund these expansions.
##
Who It Affects
- Current and future Social Security beneficiaries (retirees, disabled workers, and survivors)
- Children of deceased or disabled workers who attend school full-time
- Employees and employers who pay payroll taxes
- Self-employed workers
- Individuals with investment income above certain thresholds
- Railroad workers covered by similar programs
##
Key Provisions
- Increases the benefit calculation rate for all Social Security recipients from 90 percent to 95 percent of average wages, plus a 22 percent additional increase for those who become eligible after 2023 (Sec. 2)
- Creates a higher minimum monthly benefit for workers with more than 10 years of work history, with benefit amounts increasing based on total years worked, reaching 125 percent of the poverty line for those with 30 or more years of work (Sec. 4)
- Extends Social Security benefits for children in full-time education from age 19 to age 22 when their parent is disabled or deceased (Sec. 5)
- Applies payroll taxes to wages above $250,000 annually, in addition to existing tax rates on wages below the contribution and benefit base (Sec. 6)
- Increases the tax on investment income (capital gains) from 3.8 percent to 16.2 percent and applies this tax to active business income as well (Sec. 8)
- Creates a unified Social Security Trust Fund combining the current Old-Age and Survivors Insurance Trust Fund and Disability Insurance Trust Fund (Sec. 9)
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What Changes
If this bill becomes law, monthly Social Security payments will increase for all beneficiaries starting January 1, 2024. The minimum benefit will grow higher for low-wage workers based on their work history. Children in school will receive benefits until age 22 instead of stopping at age 19 (for those whose parent is disabled or deceased). Workers earning over $250,000 annually will pay additional Social Security payroll taxes. Investment income will face a higher tax rate. The government will manage Social Security through one combined trust fund instead of two separate accounts.
##
Important Definitions
- **Full-time student**: Someone enrolled full-time at an elementary, secondary, or post-secondary school, but excludes people paid by employers while attending school and excludes people confined in jail or prison (Sec. 5)
- **Year of work**: A year in which a worker earned four quarters of Social Security coverage credit based on wages or self-employment income (Sec. 4)
- **Contribution and benefit base**: The maximum amount of yearly earnings subject to Social Security taxes (referenced throughout the bill but defined elsewhere in Social Security law)
##
Effective Date
- Benefit increases take effect January 1, 2024 (Sec. 2)
- Cost-of-living computation changes take effect for quarters ending September 30 in the second calendar year after enactment (Sec. 3)
- Child benefits extension takes effect January 1, 2024 (Sec. 5)
- Payroll tax changes apply to remuneration paid on or after January 1 of the first calendar year beginning after enactment (Sec. 6)
- Self-employment tax changes apply to earnings derived on or after January 1 of the first calendar year beginning after enactment (Sec. 7)
- Investment income tax changes apply to taxable years beginning after enactment (Sec. 8)
- Trust fund consolidation takes effect January 1 of the first calendar year beginning after enactment (Sec. 9)
II
118TH CONGRESS
1ST SESSION
S. 393
To enhance Social Security benefits and ensure the long-term solvency of
the Social Security program.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 13, 2023
Mr. SANDERS (for himself, Ms. WARREN, Mr. WHITEHOUSE, Mr. MERKLEY,
Mr. VAN HOLLEN, Mr. PADILLA, Mrs. GILLIBRAND, Mr. BOOKER, Ms.
SMITH, and Mr. MARKEY) introduced the following bill; which was read
twice and referred to the Committee on Finance
A BILL
To enhance Social Security benefits and ensure the long-
term solvency of the Social Security program.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
3
(a) SHORT TITLE.—This Act may be cited as the
4
‘‘Social Security Expansion Act’’.
5
(b) TABLE OF CONTENTS.—The table of contents of
6
this Act is as follows:
7
Sec. 1. Short title; table of contents.
Sec. 2. Across-the-board benefit increase.
Sec. 3. Computation of cost-of-living increases.
Sec. 4. Increase in minimum benefit for lifetime low earners based on years in
the workforce.
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•S 393 IS
Sec. 5. Extended benefit eligibility for children who are full-time students.
Sec. 6. Payroll tax on remuneration up to contribution and benefit base and
more than $250,000.
Sec. 7. Tax on net earnings from self-employment up to contribution and ben-
efit base and more than $250,000.
Sec. 8. Tax on investment gain.
Sec. 9. Social Security Trust Fund established.
SEC. 2. ACROSS-THE-BOARD BENEFIT INCREASE.
1
(a) INCREASE OF FIRST BEND POINT PERCENT-
2
AGE.—Section 215(a)(1)(A)(i) of the Social Security Act
3
(42 U.S.C. 415(a)(1)(A)(i)) is amended by striking ‘‘90
4
percent’’ and inserting ‘‘95 percent’’.
5
(b) ADJUSTMENT TO BEND POINT AMOUNT.—
6
(1) IN GENERAL.—Section 215(a)(1)(B) of the
7
Social Security Act (42 U.S.C. 415(a)(1)(B)) is
8
amended—
9
(A) by redesignating clause (iii) as clause
10
(iv); and
11
(B) by inserting after clause (ii) the fol-
12
lowing new clause:
13
‘‘(iii) For an individual who is eligible for an
14
old-age or disability insurance benefit (or who dies
15
before becoming eligible for such a benefit) in any
16
calendar year after 2023, the amount determined for
17
the individual under clause (ii) of this subparagraph
18
for purposes of subparagraph (A)(i)(I) shall be in-
19
creased by 22 percent.’’.
20
(2) CONFORMING AMENDMENT.—Clause (iv) of
21
section 215(a)(1)(B) of the Social Security Act (42
22
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•S 393 IS
U.S.C. 415(a)(1)(B)), as redesignated by paragraph
1
(1), is amended by inserting ‘‘(after the application
2
of clause (iii), when applicable)’’ after ‘‘clause (ii)’’.
3
(c) EFFECTIVE DATE.—
4
(1) IN GENERAL.—The amendments made by
5
this section shall take effect on January 1, 2024,
6
and shall apply with respect to monthly insurance
7
benefits payable under title II of the Social Security
8
Act (42 U.S.C. 401 et seq.) for months in calendar
9
years beginning on or after such date.
10
(2) RECOMPUTATION OF PRIMARY INSURANCE
11
AMOUNTS.—
12
(A) IN
GENERAL.—Notwithstanding sec-
13
tion 215(f) of the Social Security Act (42
14
U.S.C. 415(f)), the Commissioner of Social Se-
15
curity
shall
recompute
primary
insurance
16
amounts to the extent necessary to carry out
17
the amendments to this section.
18
(B) RULE
OF
APPLICATION.—In recom-
19
puting the primary insurance amount of an in-
20
dividual who initially became eligible for old-age
21
or disability insurance benefits before January
22
1, 2024, the Commissioner of Social Security
23
shall apply the increase described in clause (iii)
24
of section 215(a)(1)(B) of the Social Security
25
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•S 393 IS
Act (as added by subsection (b)(1)(B)) to the
1
amount determined under clause (ii) of such
2
section 215(a)(1)(B) for the calendar year in
3
which the individual initially became eligible for
4
such benefits.
5
SEC. 3. COMPUTATION OF COST-OF-LIVING INCREASES.
6
(a) IN GENERAL.—Section 215(i)(1) of the Social Se-
7
curity Act (42 U.S.C. 415(i)(1)) is amended by adding
8
at the end the following new subparagraph:
9
‘‘(H) the term ‘Consumer Price Index’ means
10
the Consumer Price Index for Elderly Consumers
11
(CPI–E, as published by the Bureau of Labor Sta-
12
tistics of the Department of Labor).’’.
13
(b) APPLICATION TO PRE-1979 LAW.—
14
(1) IN GENERAL.—Section 215(i)(1) of the So-
15
cial Security Act as in effect in December 1978, and
16
as applied in certain cases under the provisions of
17
such Act as in effect after December 1978, is
18
amended by adding at the end the following new
19
subparagraph:
20
‘‘(D) the term ‘Consumer Price Index’ means
21
the Consumer Price Index for Elderly Consumers
22
(CPI–E, as published by the Bureau of Labor Sta-
23
tistics of the Department of Labor).’’.
24
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•S 393 IS
(2) CONFORMING CHANGE.—Section 215(i)(4)
1
of the Social Security Act (42 U.S.C. 415(i)(4)) is
2
amended—
3
(A) by striking ‘‘and by section 9001’’ and
4
inserting ‘‘, section 9001’’; and
5
(B) by inserting ‘‘and section 3 of the So-
6
cial Security Expansion Act,’’ after ‘‘1986,’’.
7
(c) NO EFFECT ON ADJUSTMENTS UNDER OTHER
8
LAWS.—Section 215(i) of the Social Security Act (42
9
U.S.C. 415(i)) is amended by adding at the end the fol-
10
lowing:
11
‘‘(6) Any provision of law (other than in this title,
12
title VIII, or title XVI) which provides for adjustment of
13
an amount based on a change in benefit amounts resulting
14
from a determination made under this subsection shall be
15
applied and administered without regard to the amend-
16
ments made by section 3 of the Social Security Expansion
17
Act, and, for purposes of making such an adjustment
18
under such a provision, this subsection as in effect on the
19
day before the date of enactment of such Act shall con-
20
tinue to apply.’’.
21
(d) PUBLICATION OF CONSUMER PRICE INDEX FOR
22
ELDERLY CONSUMERS.—The Bureau of Labor Statistics
23
of the Department of Labor shall prepare and publish the
24
index authorized by section 191 of the Older Americans
25
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•S 393 IS
Amendments Act of 1987 (29 U.S.C. 2 note) for each cal-
1
endar month, beginning with July of the calendar year fol-
2
lowing the calendar year in which this Act is enacted, and
3
such index shall be known as the ‘‘Consumer Price Index
4
for Elderly Consumers’’.
5
(e) EFFECTIVE DATE.—The amendments made by
6
subsection (a) shall apply to determinations made with re-
7
spect to cost-of-living computation quarters (as defined in
8
section 215(i)(1)(B) of the Social Security Act (42 U.S.C.
9
415(i)(1)(B))) ending on or after September 30 of the sec-
10
ond calendar year following the calendar year in which this
11
Act is enacted.
12
SEC. 4. INCREASE IN MINIMUM BENEFIT FOR LIFETIME
13
LOW EARNERS BASED ON YEARS IN THE
14
WORKFORCE.
15
(a) IN GENERAL.—Section 215(a)(1) of the Social
16
Security Act (42 U.S.C. 415(a)(1)) is amended—
17
(1) by redesignating subparagraph (D) as sub-
18
paragraph (E); and
19
(2) by inserting after subparagraph (C) the fol-
20
lowing new subparagraph:
21
‘‘(D)(i) Effective with respect to the benefits of indi-
22
viduals who become eligible for old-age insurance benefits
23
or disability insurance benefits (or die before becoming so
24
eligible) after 2023, no primary insurance amount com-
25
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•S 393 IS
puted under subparagraph (A) may be less than the great-
1
er of—
2
‘‘(I) the minimum monthly amount computed
3
under subparagraph (C); or
4
‘‘(II) in the case of an individual who has more
5
than 10 years of work (as defined in clause (iv)(I)),
6
the alternative minimum amount determined under
7
clause (ii).
8
‘‘(ii)(I) The alternative minimum amount determined
9
under this clause is the applicable percentage of 1⁄12 of
10
the annual dollar amount determined under clause (iii) for
11
the year in which the amount is determined.
12
‘‘(II) For purposes of subclause (I), the applicable
13
percentage is the percentage specified in connection with
14
the number of years of work, as set forth in the following
15
table:
16
‘‘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
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•S 393 IS
‘‘If the number of years
The applicable
of work is:
percentage is:
28 ......................................................................................
112.50 percent
29 ......................................................................................
118.75 percent
30 or more ........................................................................
125.00 percent.
‘‘(iii) The annual dollar amount determined under
1
this clause is—
2
‘‘(I) for calendar year 2024, the poverty guide-
3
line for 2023; and
4
‘‘(II) for any calendar year after 2024, the an-
5
nual dollar amount for 2023 multiplied by the ratio
6
of—
7
‘‘(aa) the national average wage index (as
8
defined in section 209(k)(1)) for the second cal-
9
endar year preceding the calendar year for
10
which the determination is made, to
11
‘‘(bb) the national average wage index (as
12
so defined) for 2022.
13
‘‘(iv) For purposes of this subparagraph—
14
‘‘(I) the term ‘year of work’ means, with re-
15
spect to an individual, a year to which 4 quarters of
16
coverage have been credited based on such individ-
17
ual’s wages and self-employment income; and
18
‘‘(II) the term ‘poverty guideline for 2023’
19
means the annual poverty guideline for 2023 (as up-
20
dated annually in the Federal Register by the De-
21
partment of Health and Human Services under the
22
authority of section 673(2) of the Omnibus Budget
23
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•S 393 IS
Reconciliation Act of 1981) as applicable to a single
1
individual.’’.
2
(b)
RECOMPUTATION.—Notwithstanding
section
3
215(f)(1) of the Social Security Act, the Commissioner of
4
Social Security shall recompute primary insurance
5
amounts originally computed for months prior to Novem-
6
ber 2018 to the extent necessary to carry out the amend-
7
ments made by this section.
8
(c) CONFORMING AMENDMENT.—Section 209(k)(1)
9
of such Act (42 U.S.C. 409(k)(1)) is amended by inserting
10
‘‘215(a)(1)(E),’’ after ‘‘215(a)(1)(D),’’.
11
SEC. 5. EXTENDED BENEFIT ELIGIBILITY FOR CHILDREN
12
WHO ARE FULL-TIME STUDENTS.
13
(a) IN GENERAL.—
14
(1) IN GENERAL.—Section 202(d) of the Social
15
Security Act (42 U.S.C. 402(d)) is amended—
16
(A) in paragraph (1)—
17
(i) in subparagraph (B)—
18
(I) by striking ‘‘or (ii)’’ and in-
19
serting ‘‘(ii)’’; and
20
(II) by inserting ‘‘or (iii) was the
21
child of an individual entitled to dis-
22
ability insurance benefits or of an in-
23
dividual who dies a fully or currently
24
insured individual and was a full-time
25
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•S 393 IS
student at an educational institution
1
and had not attained the age of 22,’’
2
after ‘‘22,’’;
3
(ii) in subparagraph (E)—
4
(I) by striking ‘‘and (ii)’’ and in-
5
serting ‘‘(ii)’’; and
6
(II) by inserting ‘‘and (iii) is not
7
a full-time student at an educational
8
institution during any part of such
9
month (in the case of a child who is
10
the child of an individual entitled to
11
disability insurance benefits or of an
12
individual who dies a fully or cur-
13
rently insured individual)’’ before the
14
comma at the end;
15
(iii) in subparagraph (F), by striking
16
clauses (i) and (ii) and inserting the fol-
17
lowing:
18
‘‘(i) in the case of a child who is the child
19
of an individual entitled to old-age insurance
20
benefits—
21
‘‘(I) the first month during no part of
22
which the child is a full-time elementary or
23
secondary school student, or
24
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•S 393 IS
‘‘(II) the month in which the child at-
1
tains the age of 19, and
2
‘‘(ii) in the case of a child who is the
[Text truncated for display. Full text available on Congress.gov.]