S.478: Social Security Expansion Act

Overview

The Social Security Expansion Act (S.478) would increase Social Security benefits, expand the number of recipients receiving benefits, and extend the solvency of the Old-Age, Survivors, and Disability Insurance (OASDI) Trust Fund by 35 years.

The Social Security Expansion Act would begin taxing wages over $250,000 at 12.4 percent (split 50/50 between employee and employer). Currently, only income below $133,000 is subject to the Social Security payroll tax. Additionally, the bill would raise the surtax on investment income over $250,000 from 3.8 percent to 10 percent.

The legislation would also adjust the Primary Insurance Amount formula to raise retirement benefits for low-income individuals, and create a minimum annual benefit that is equal to 125 percent of the Federal Poverty Level. The bill would change the cost of living index formula to one that is more weighted to the inflationary needs of older Americans. The bill also would reinstate the Supplemental Security Income (SSI) benefits for children under the age of 22 who have parents or guardians that are disabled or deceased.

Finally, the bill would combine the currently separate Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds into a single Social Security Trust Fund.

H.R. 1170 is the House companion bill.

Source

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Our Stance

Support

Priority

High

Bill Number

S.478

Date Introduced

February 13, 2019

Committee

Senate Finance Committee

Bill Status

Introduced or Prefiled