Social Security Expansion Act
This bill increases Social Security benefits, expands Social Security payroll taxes, and makes other changes to the Social Security program.
Specifically, the bill changes the way Social Security benefits are calculated by increasing the primary insurance amount applicable to average monthly earnings that fall below a specified amount, and increasing bend points for individuals who become eligible for Social Security after 2025. (Bend points are dollar amounts at which earnings are segmented for the purpose of calculating an individual’s primary insurance amount. The share of an individual’s earnings that are replaced by Social Security decreases at each escalating bend point.)
The bill also revises the method of calculating cost-of-living adjustments to account for the spending of individuals over the age of 62 and establishes a new minimum benefit for certain low earners. Further, the bill permits full-time students who are the children of deceased or disabled workers to collect Social Security or railroad retirement child’s benefits until they reach age 22.
With respect to taxes, the bill extends payroll taxes on wages, salaries, and self-employment earnings to income above $250,000. (In 2025, the maximum amount subject to Social Security payroll tax is $176,100.) The bill also increases the net investment income tax and subjects active trade or business income to this tax.
Finally, the bill combines the existing Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund into a single Social Security Trust Fund.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1700 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1700
To enhance Social Security benefits and ensure the long-term solvency
of the Social Security program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2025
Ms. Hoyle of Oregon (for herself, Ms. Schakowsky, Mr. Carter of
Louisiana, Mr. Casar, Ms. Chu, Mr. Cohen, Mr. Deluzio, Ms. Lois Frankel
of Florida, Ms. Jayapal, Mr. Khanna, Mr. McGovern, Ms. Moore of
Wisconsin, Mr. Nadler, Ms. Norton, Ms. Pingree, Mr. Pocan, Mrs.
Ramirez, Ms. Salinas, Ms. Tlaib, and Ms. Tokuda) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on Education and Workforce, and
Transportation and Infrastructure, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
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 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 ``Social Security
Expansion Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
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.
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
benefit 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.
(a) Increase of First Bend Point Percentage.--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) Adjustment To Bend Point Amount.--
(1) In general.--Section 215(a)(1)(B) of the Social
Security Act (42 U.S.C. 415(a)(1)(B)) is amended--
(A) by redesignating clause (iii) as clause (iv);
and
(B) by inserting after clause (ii) the following
new clause:
``(iii) For an individual who is eligible for an old-age or
disability insurance benefit (or who dies before becoming
eligible for such a benefit) in any calendar year after 2025,
the amount determined for the individual under clause (ii) of
this subparagraph for purposes of subparagraph (A)(i)(I) shall
be increased by 18 percent.''.
(2) Conforming amendment.--Clause (iv) of section
215(a)(1)(B) of the Social Security Act (42 U.S.C.
415(a)(1)(B)), as redesignated by paragraph (1), is amended by
inserting ``(after the application of clause (iii), when
applicable)'' after ``clause (ii)''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on January 1, 2026, and shall apply with respect to
monthly insurance benefits payable under title II of the Social
Security Act (42 U.S.C. 401 et seq.) for months in calendar
years beginning on or after such date.
(2) Recomputation of primary insurance amounts.--
(A) In general.--Notwithstanding section 215(f) of
the Social Security Act (42 U.S.C. 415(f)), the
Commissioner of Social Security shall recompute primary
insurance amounts to the extent necessary to carry out
the amendments to this section.
(B) Rule of application.--In recomputing the
primary insurance amount of an individual who initially
became eligible for old-age or disability insurance
benefits before January 1, 2026, the Commissioner of
Social Security shall apply the increase described in
clause (iii) of section 215(a)(1)(B) of the Social
Security Act (as added by subsection (b)(1)(B)) to the
amount determined under clause (ii) of such section
215(a)(1)(B) for the calendar year in which the
individual initially became eligible for such benefits.
SEC. 3. COMPUTATION OF COST-OF-LIVING INCREASES.
(a) In General.--Section 215(i)(1) of the Social Security Act (42
U.S.C. 415(i)(1)) is amended by adding at the end the following new
subparagraph:
``(H) the term `Consumer Price Index' means the Consumer
Price Index for Elderly Consumers (CPI-E, as published by the
Bureau of Labor Statistics of the Department of Labor).''.
(b) Application to Pre-1979 Law.--
(1) In general.--Section 215(i)(1) of the Social Security
Act as in effect in December 1978, and as applied in certain
cases under the provisions of such Act as in effect after
December 1978, is amended by adding at the end the following
new subparagraph:
``(D) the term `Consumer Price Index' means the Consumer
Price Index for Elderly Consumers (CPI-E, as published by the
Bureau of Labor Statistics of the Department of Labor).''.
(2) Conforming change.--Section 215(i)(4) of the Social
Security Act (42 U.S.C. 415(i)(4)) is amended--
(A) by striking ``and by section 9001'' and
inserting ``, section 9001''; and
(B) by inserting ``and section 3 of the Social
Security Expansion Act,'' after ``1986,''.
(c) No Effect on Adjustments Under Other Laws.--Section 215(i) of
the Social Security Act (42 U.S.C. 415(i)) is amended by adding at the
end the following:
``(6) Any provision of law (other than in this title, title VIII,
or title XVI) which provides for adjustment of an amount based on a
change in benefit amounts resulting from a determination made under
this subsection shall be applied and administered without regard to the
amendments made by section 3 of the Social Security Expansion Act, and,
for purposes of making such an adjustment under such a provision, this
subsection as in effect on the day before the date of enactment of such
Act shall continue to apply.''.
(d) Publication of Consumer Price Index for Elderly Consumers.--The
Bureau of Labor Statistics of the Department of Labor shall prepare and
publish the index authorized by section 191 of the Older Americans
Amendments Act of 1987 (29 U.S.C. 2 note) for each calendar month,
beginning with July of the calendar year following the calendar year in
which this Act is enacted, and such index shall be known as the
``Consumer Price Index for Elderly Consumers''.
(e) Effective Date.--The amendments made by subsection (a) shall
apply to determinations made with respect to cost-of-living computation
quarters (as defined in section 215(i)(1)(B) of the Social Security Act
(42 U.S.C. 415(i)(1)(B))) ending on or after September 30 of the second
calendar year following the calendar year in which this Act is enacted.
SEC. 4. 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 2025, 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 2026, the poverty guideline for
2025; and
``(II) for any calendar year after 2026, the annual dollar
amount for 2026 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 2024.
``(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 2025' means the
annual poverty guideline for 2025 (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 2025 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. 5. EXTENDED BENEFIT ELIGIBILITY FOR CHILDREN WHO ARE FULL-TIME
STUDENTS.
(a) In General.--
(1) In general.--Section 202(d) of the Social Security Act
(42 U.S.C. 402(d)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (B)--
(I) by striking ``or (ii)'' and
inserting ``(ii)''; and
(II) by inserting ``or (iii) was
the child of an individual entitled to
disability insurance benefits or of an
individual who dies a fully or
currently insured individual and was a
full-time student at an educational
institution and had not attained the
age of 22,'' after ``22,'';
(ii) in subparagraph (E)--
(I) by striking ``and (ii)'' and
inserting ``(ii)''; and
(II) by inserting ``and (iii) is
not a full-time student at an
educational institution during any part
of such month (in the case of a child
who is the child of an individual
entitled to disability insurance
benefits or of an individual who dies a
fully or currently insured
individual)'' before the comma at the
end;
(iii) in subparagraph (F), by striking
clauses (i) and (ii) and inserting the
following:
``(i) in the case of a child who is the child of an
individual entitled to old-age insurance benefits--
``(I) the first month during no part of
which the child is a full-time elementary or
secondary school student, or
``(II) the month in which the child attains
the age of 19, and
``(ii) in the case of a child who is the child of
an individual entitled to disability insurance benefits
or of an individual who dies a fully or currently
insured individual--
``(I) the first month during no part of
which the child is a full-time student at an
educational institution, or
``(II) the month in which the child attains
the age of 22,''; and
(iv) in subparagraph (G), by striking
clauses (ii) and (iii) and inserting the
following:
``(ii) in the case of a child who is the child of
an individual entitled to old-age insurance benefits--
``(I) the first month during no part of
which the child is a full-time elementary or
secondary school student, or
``(II) the month in which the child attains
the age of 19, and
``(iii) in the case of a child who is the child of
an individual entitled to disability insurance benefits
or of an individual who dies a fully or currently
insured individual--
``(I) the first month during no part of
which the child is a full-time student at an
educational institution, or
``(II) the month in which the child attains
the age of 22,'';
(B) in paragraph (6)--
(i) in subparagraph (A)--
(I) by striking ``or (ii)'' and
inserting ``(ii)''; and
(II) by inserting ``or (iii) is the
child of an individual entitled to
disability insurance benefits or of an
individual who dies a fully or
currently insured individual and is a
full-time student at an educational
institution and has not attained the
age of 22,'' after ``22,''; and
(ii) by striking subparagraphs (D) and (E)
and inserting the following:
``(D) the earlier of--
``(i) in the case of a child who is the child of an
individual entitled to old-age insurance benefits--
``(I) the first month during no part of
which the child is a full-time elementary or
secondary school student; or
``(II) the month in which the child attains
the age of 19; and
``(ii) in the case of a child who is the child of
an individual entitled to disability insurance benefits
or of an individual who dies a fully or currently
insured individual--
``(I) the first month during no part of
which the child is a full-time student at an
educational institution; or
``(II) the month in which the child attains
the age of 22,
but only if the child is not under a disability (as so
defined) in such earlier month; or
``(E) if the child was under a disability (as so defined),
the termination month (as defined in paragraph (1)(G)(i)),
subject to section 223(e), or (if later) the earlier of--
``(i) in the case of a child who is the child of an
individual entitled to old-age insurance benefits--
``(I) the first month during no part of
which the child is a full-time elementary or
secondary school student; or
``(II) the month in which the child attains
the age of 19; and
``(ii) in the case of a child who is the child of
an individual entitled to disability insurance benefits
or of an individual who dies a fully or currently
insured individual--
``(I) the first month during no part of
which the child is a full-time student at an
educational institution; or
``(II) the month in which the child attains
the age of 22.''; and
(C) in paragraph (7), by adding at the end the
following new paragraphs:
``(E) The term `full-time student at an educational
institution' means an individual who is in full-time attendance
as a student at an elementary school (but only in the case of
an individual who has not attained the age of 19) or a
secondary school or an institution described in section 102 of
the Higher Education Act of 1965 (20 U.S.C. 1002), as
determined by the Commissioner of Social Security (in
accordance with regulations prescribed by the Commissioner) in
the light of the standards and practices of the schools and
institutions involved, except that no individual shall be
considered a `full-time student at an educational institution'
if the individual is paid by his employer while attending a
school or institution at the request, or pursuant to a
requirement, of his employer. An individual shall not be
considered a `full-time student at an educational institution'
for the purpose of this section while that individual is
confined in a jail, prison, or other penal institution or
correctional facility, pursuant to the individual's conviction
of an offense (committed after the effective date of this
sentence) which constituted a felony under applicable law. An
individual who is determined to be a full-time student at an
educational institution shall be deemed to be such a student
throughout the month with respect to which such determination
is made.
``(F) Except to the extent provided in such regulations, an
individual shall be deemed to be a full-time student at a
school or educational institution during any period of
nonattendance at a school or institution at which he has been
in full-time attendance if (i) such period is 4 calendar months
or less, and (ii) the individual shows to the satisfaction of
the Commissioner of Social Security that the individual intends
to continue to be in full-time attendance at a secondary school
or institution described in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002) immediately following such period.
An individual who does not meet the requirement of clause (ii)
with respect to such period of nonattendance shall be deemed to
have met such requirement (as of the beginning of such period)
if he is in full-time attendance at such a school or
institution immediately following such period.
``(G) A child who attains age 22 at a time when the child
is a full-time student of an educational institution (as
defined in subparagraph (E) and without application of
subparagraph (F)) but has not (at such time) completed the
requirements for, or received, a diploma or equivalent
certificate from a secondary school (as defined in subparagraph
(C)(i)) or, if such child is a student at an educational
institution described in section 102 of the Higher Education
Act of 1965, a diploma, degree, or equivalent degree from such
an institution, shall be deemed (for purposes of determining
whether the child's entitlement to benefits under this
subsection has terminated under paragraph (1)(F) and for
purposes of determining his initial entitlement to such
benefits under clause (iii) of paragraph (1)(B)) not to have
attained such age until the first day of the first month
following the end of the quarter or semester in which he is
enrolled at such time (or, if the secondary school or
educational institution in which he is enrolled is not operated
on a quarter or semester system, until the first day of the
first month following the completion of the course in which the
child is so enrolled or until the first day of the third month
beginning after such time, whichever first occurs).''.
(2) Effective date.--The amendments made by this subsection
shall apply to child's insurance benefits that are payable for
months beginning on or after January 1, 2026.
(b) Railroad Retirement Act.--
(1) Section 2(d) of the Railroad Retirement Act of 1974 (45
U.S.C. 232(2)(d)) is amended--
(A) in clause (iii) of paragraph (1), by striking
``will be less than nineteen years of age and a full-
time elementary or secondary school student'' and
inserting ``will be less than 22 years of age and a
full-time student at an educational institution (as
defined in section 202(d)(7)(E) of the Social Security
Act)''; and
(B) in paragraph (4)--
(i) by striking ``(defining the terms
`full-time elementary or secondary school
student' and `elementary or secondary
school')'';
(ii) by striking ``nineteen'' and inserting
``22'';
(iii) by striking ``full-time elementary or
secondary school student'' and inserting
``full-time student at an educational
institution'';
(iv) by striking ``subparagraph (A) of
paragraph (7) of section 202(d) of the Social
Security Act and without the application of
subparagraph (B)'' and inserting ``subparagraph
(E) of section 202(d)(7) of the Social Security
Act, without regard to subparagraph (F) of such
section'';
(v) by striking ``a diploma or equivalent
certificate from a secondary school (as defined
in section 202(d)(7)(c)(i) of the Social
Security Act)'' and inserting ``a diploma,
degree, or equivalent certificate from a
secondary school or educational institution
described in section 202(d)(7)(E) of the Social
Security Act''; and
(vi) by striking ``elementary or secondary
school in which he is enrolled'' and inserting
``school or institution in which the child is
enrolled''.
(2) Section 5(c)(7) of the Railroad Retirement Act of 1974
(45 U.S.C. 235(c)(7)) is amended--
(A) by striking ``full-time elementary or secondary
school student'' and inserting ``full-time student at
an educational institution''; and
(B) by striking ``19'' and inserting ``22''.
(3) The amendments made by this subsection shall apply to
benefits under the Railroad Retirement Act of 1974 that are
payable for months beginning on or after January 1, 2026.
SEC. 6. PAYROLL TAX ON REMUNERATION UP TO CONTRIBUTION AND BENEFIT BASE
AND MORE THAN $250,000.
(a) In General.--Paragraph (1) of section 3121(a) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) in the case of taxes imposed by sections 3101(a) and
3111(a), for any calendar year in which the contribution and
benefit base (as determined under section 230 of the Social
Security Act) is less than $250,000, so much of the
remuneration (other than remuneration referred to in the
succeeding paragraphs of this subsection) with respect to
employment that has been paid to an individual by an employer
during the calendar year as exceeds such contribution and
benefit base but does not exceed $250,000;''.
(b) Conforming Amendments.--
(1) Successor employers.--Section 3121 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new subsection:
``(aa) Special Rules for Successor Employers.--For purposes of
subsection (a)(1), if an employer (hereinafter referred to as successor
employer) during any calendar year acquires substantially all the
property used in a trade or business of another employer (hereinafter
referred to as a predecessor), or used in a separate unit of a trade or
business of a predecessor, and immediately after the acquisition
employs in his trade or business an individual who immediately prior to
the acquisition was employed in the trade or business of such
predecessor, then, for the purpose of determining the amount of
remuneration paid by the successor employer under such subsection, any
remuneration (other than remuneration referred to in the paragraphs
succeeding paragraph (1) of subsection (a)) with respect to employment
paid (or considered under this subsection as having been paid) to such
individual by such predecessor during such calendar year and prior to
such acquisition shall be considered as having been paid by such
successor employer.''.
(2) Application to railroad retirement taxes.--Clause (i)
of section 3231(e)(2)(A) of such Code is amended to read as
follows:
``(i) In general.--For any calendar year in
which the applicable base is less than
$250,000, the term `compensation' does not
include so much of the remuneration paid during
any calendar year to an individual by an
employer for services rendered as an employee
to such employer as exceeds the applicable base
but does not exceed $250,000.''.
(c) Effective Date.--The amendments made by this section shall
apply to remuneration paid on or after January 1 of the first calendar
year that begins after the date of enactment of this Act.
SEC. 7. TAX ON NET EARNINGS FROM SELF-EMPLOYMENT UP TO CONTRIBUTION AND
BENEFIT BASE AND MORE THAN $250,000.
(a) In General.--Paragraph (1) of section 1402(b) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) in the case of the tax imposed by section 1401(a) for
any taxable year beginning in a calendar year in which the
contribution and benefit base (as determined under section 230
of the Social Security Act) is less than $250,000, the excess
(if any) of--
``(A) so much of the net earnings from self-
employment which is in excess of--
``(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, minus
``(ii) the amount of the wages paid to such
individual during such taxable years, over
``(B) the sum of--
``(i) the excess (if any) of--
``(I) the net earning from self-
employment reduced by the excess (if
any) of subparagraph (A)(i) over
subparagraph (A)(ii), over
``(II) $250,000, reduced by such
contribution and benefit base, plus
``(ii) the amount of the wages paid to such
individual during such taxable year in excess
of such contribution and benefit base and not
in excess of $250,000; or''.
(b) Effective Date.--The amendments made by this section shall
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.
SEC. 8. TAX ON INVESTMENT GAIN.
(a) Increase in Tax.--
(1) 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 ``16.2 percent''.
(2) Conforming amendment.--The heading for chapter 2A of
the Internal Revenue Code of 1986 is amended by striking
``UNEARNED INCOME MEDICARE CONTRIBUTION'' and inserting
``ADDITIONAL TAX ON UNEARNED INCOME IN LIEU OF SOCIAL SECURITY
AND MEDICARE TAXES''.
(b) Inclusion of Active Trade or Business Income.--
(1) In general.--Section 1411(c)(1)(A) of the Internal
Revenue Code of 1986 is amended--
(A) in clause (i), by striking ``, other than such
income which is derived in the ordinary course of a
trade or business not described in paragraph (2)'',
(B) in clause (ii), by striking ``described in
paragraph (2)'' and inserting ``(determined under rules
similar to the rules of paragraphs (5) and (6) of
section 469(c))'', and
(C) in clause (iii), by striking ``other than
property held in a trade or business not described in
paragraph (2)''.
(2) Denial of deduction for net operating losses.--Section
1411(c)(1)(B) of such Code is amended by inserting ``(other
than the deduction for net operating losses provided in section
172)'' after ``net gain''.
(3) Conforming amendments.--
(A) Section 1411(c) of such Code is amended by
striking paragraphs (2), (3), and (4) and by
redesignating paragraphs (5) and (6) as paragraphs (2)
and (3), respectively.
(B) Section 1411(c)(3) of such Code, as
redesignated by subparagraph (A), is amended to read as
follows:
``(3) Special rule.--Net investment income shall not
include--
``(A) any item taken into account in determining
self-employment income for such taxable year on which a
tax is imposed by section 1401, or
``(B) any item taken into account in determining
wages received with respect to employment for such
taxable year on which a tax is imposed by section
3101.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of enactment of this
Act.
SEC. 9. SOCIAL SECURITY TRUST FUND ESTABLISHED.
(a) In General.--Section 201(a) of the Social Security Act (42
U.S.C. 401(a)) is amended to read as follows:
``(a) There is hereby created on the books of the Treasury of the
United States a trust fund to be known as the `Social Security Trust
Fund'. The Social Security Trust Fund shall consist of the securities
held by the Secretary of the Treasury for the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund and the amount standing to the credit of the Federal Old-Age
and Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund on the books of the Treasury on January 1 of the first
calendar year beginning after the date of the enactment of section 9 of
the Social Security Expansion Act, which securities and amount the
Secretary of the Treasury is authorized and directed to transfer to the
Social Security Trust Fund, and, in addition, such gifts and bequests
as may be made as provided in subsection (i)(1), and such amounts as
may be appropriated to, or deposited in, the Social Security Trust Fund
as hereinafter provided. There is hereby appropriated to the Social
Security Trust Fund for the first fiscal year that begins after the
date of the enactment of section 9 of the Social Security Expansion
Act, and for each fiscal year thereafter, out of any moneys in the
Treasury not otherwise appropriated, amounts equivalent to 100 percent
of--
``(1) the taxes imposed by chapter 21 (other than sections
3101(b) and 3111(b)) of the Internal Revenue Code of 1986 with
respect to wages (as defined in section 3121 of such Code)
reported to the Secretary of the Treasury pursuant to subtitle
F of the Internal Revenue Code of 1986, as determined by the
Secretary of the Treasury by applying the applicable rates of
tax under such chapter (other than sections 3101(b) and
3111(b)) to such wages, which wages shall be certified by the
Commissioner of Social Security on the basis of the records of
wages established and maintained by such Commissioner in
accordance with such reports;
``(2) the taxes imposed by chapter 2 (other than section
1401(b)) of the Internal Revenue Code of 1986 with respect to
self-employment income (as defined in section 1402 of such
Code) reported to the Secretary of the Treasury on tax returns
under subtitle F of such Code, as determined by the Secretary
of the Treasury by applying the applicable rate of tax under
such chapter (other than section 1401(b)) to such self-
employment income, which self-employment income shall be
certified by the Commissioner of Social Security on the basis
of the records of self-employment income established and
maintained by the Commissioner of Social Security in accordance
with such returns; and
``(3) 62 percent of the taxes imposed under section 1411 of
the Internal Revenue Code of 1986.
The amounts appropriated by paragraphs (1), (2), and (3) shall be
transferred from time to time from the general fund in the Treasury to
the Social Security Trust Fund, such amounts to be determined on the
basis of estimates by the Secretary of the Treasury of the taxes,
specified in paragraphs (1), (2), and (3), paid to or deposited into
the Treasury; and proper adjustments shall be made in amounts
subsequently transferred to the extent prior estimates were in excess
of or were less than the taxes specified in such paragraphs. All
amounts transferred to the Social Security Trust Fund under the
preceding sentence shall be invested by the Managing Trustee in the
same manner and to the same extent as the other assets of the Trust
Fund. Notwithstanding the preceding sentence, in any case in which the
Secretary of the Treasury determines that the assets of the Trust Fund
would otherwise be inadequate to meet the Trust Fund's obligations for
any month, the Secretary of the Treasury shall transfer to the Trust
Fund on the first day of such month the total amount which would have
been transferred to the Trust Fund under this section as in effect on
October 1, 1990; and the Trust Fund shall pay interest to the general
fund on the amount so transferred on the first day of any month at a
rate (calculated on a daily basis, and applied against the difference
between the amount so transferred on such first day and the amount
which would have been transferred to the Trust Fund up to that day
under the procedures in effect on January 1, 1983) equal to the rate
earned by the investments of the Trust Fund in the same month under
subsection (d).''.
(b) Required Actuarial Analysis.--Section 201(c) of the Social
Security Act is amended by striking the fourth sentence in the matter
following paragraph (5) and inserting the following: ``Such report
shall also include actuarial analysis of the benefit cost with respect
to disabled beneficiaries and their auxiliaries, to retired
beneficiaries and their auxiliaries, and to survivor beneficiaries.''.
(c) Board of Trustees.--
(1) Board of trustees of social security trust fund.--
Section 201(c) of the Social Security Act, as amended by
subsection (b) of this section, is further amended in the
matter preceding paragraph (1) by striking ``the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund (hereinafter in this title
called the `Trust Funds')'' and inserting ``the Social Security
Trust Fund (in this title referred to as the `Trust Fund')''.
(2) Continuity of board of trustees.--The Board of Trustees
of the Social Security Trust Fund created by the amendment made
by subsection (a) shall be a continuous body with the Board of
Trustees of the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund in
operation prior to the effective date of such amendment.
Individuals serving as members of the Board of Trustees of the
Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund as of the effective
date of such amendment shall serve the remainder of their term
as members of the Board of Trustees of the Social Security
Trust Fund.
(d) Conforming Amendments Related to Social Security Trust Fund.--
(1) Amendment to section heading.--The section heading for
section 201 of the Social Security Act is amended to read as
follows: ``social security trust fund''.
(2) Board of trustees.--Section 201(c) of such Act, as
amended by subsections (b) and (c)(1), is further amended--
(A) in the matter preceding paragraph (1), by
striking ``Board of Trustees of the Trust Funds'' and
inserting ``Board of Trustees of the Trust Fund'';
(B) in paragraph (1), by striking ``Trust Funds''
and inserting ``Trust Fund'';
(C) in paragraph (2)--
(i) by striking ``Trust Funds'' and
inserting ``Trust Fund''; and
(ii) by striking ``their'' and inserting
``its'';
(D) in paragraph (3), by striking ``either of the
Trust Funds'' and inserting ``the Trust Fund'';
(E) in paragraph (5)--
(i) by striking ``managing the Trust
Funds'' and inserting ``managing the Trust
Fund''; and
(ii) by striking ``Trust Funds are'' and
inserting ``Trust Fund is'';
(F) in the matter following paragraph (5), by
striking ``Trust Funds'' each place it appears and
inserting ``Trust Fund''; and
(G) in the second sentence in the matter following
paragraph (5), by striking ``whether the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund, individually and
collectively, are'' and inserting ``whether the Social
Security Trust Fund is''.
(3) Investments.--Section 201 of such Act is amended in
subsections (d) and (e) by striking ``Trust Funds'' each place
it appears and inserting ``Trust Fund''.
(4) Crediting of interest and proceeds to trust funds.--
Section 201(f) of such Act is amended--
(A) by striking ``the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability
Insurance Trust Fund shall be credited to and form a
part of the Federal Old-Age and Survivors Insurance
Trust Fund and the Disability Insurance Trust Fund,
respectively'' and inserting ``the Social Security
Trust Fund shall be credited to and form a part of the
Social Security Trust Fund'';
(B) by striking ``either of the Trust Funds'' and
inserting ``the Trust Fund''; and
(C) by striking ``such Trust Fund'' and inserting
``the Trust Fund''.
(5) Administrative costs.--Section 201(g) of such Act is
amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``Of
the amounts authorized to be made available out
of the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance
Trust Fund under the preceding sentence'' and
all that follows through ``(Public Law 103-
296).''; and
(ii) in subparagraph (B)(i)--
(I) by striking subclauses (II) and
(III) and inserting the following:
``(II) the portion of such costs which should have
been borne by the Social Security Trust Fund,''; and
(II) by redesignating subclauses
(IV) and (V) as subclauses (III) and
(IV);
(B) in paragraph (2)--
(i) by striking ``Trust Funds'' and
inserting ``Trust Fund''; and
(ii) by striking the last sentence; and
(C) in paragraph (4), by striking ``Trust Funds''
each place it appears and inserting ``Trust Fund''.
(6) Benefit payments.--Section 201(h) of such Act is
amended to read as follows:
``(h) All benefit payments required to be made under this title
shall be made only from the Social Security Trust Fund.''.
(7) Gifts.--Section 201(i) of such Act is amended--
(A) in paragraph (1), by striking ``the Federal
Old-Age and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund'' and inserting ``the
Social Security Trust Fund''; and
(B) in paragraph (2)(B), by striking ``the Federal
Old-Age and Survivors Insurance Trust Fund'' and
inserting ``the Social Security Trust Fund''.
(8) Travel expenses.--Section 201(j) of such Act is amended
by striking ``the Federal Old-Age and Survivors Insurance Trust
Fund, or the Federal Disability Insurance Trust Fund (as
determined appropriate by the Commissioner of Social
Security)'' and inserting ``the Social Security Trust Fund''.
(9) Demonstration projects.--Section 201(k) of such Act is
amended by striking ``the Federal Disability Insurance Trust
Fund and the Federal Old-Age and Survivors Insurance Trust
Fund, as determined appropriate by the Commissioner of Social
Security'' and inserting ``the Social Security Trust Fund''.
(10) Benefit checks.--Section 201(m) of such Act is
amended--
(A) in paragraph (2), by striking ``each of the
Trust Funds'' and inserting ``the Social Security Trust
Fund'';
(B) in paragraph (3), by striking ``one of the
Trust Funds'' and inserting ``the Trust Fund''; and
(C) by striking ``such Trust Fund'' each place it
appears and inserting ``the Trust Fund''.
(11) Conforming repeals.--
(A) In general.--Section 201 of such Act is amended
by striking subsections (b), (l), and (n).
(B) Redesignations.--Section 201 of such Act is
further amended--
(i) by redesignating subsections (c)
through (j) as subsections (b) through (i),
respectively;
(ii) by redesignating subsection (k) as
subsection (j); and
(iii) by redesignating subsection (m) as
subsection (k).
(C) References to redesignated sections.--
(i) Section 201(a) of such Act, as amended
by subsection (a) of this section, is further
amended--
(I) by striking ``subsection
(i)(1)'' and inserting ``subsection
(h)(1)''; and
(II) by striking ``subsection (d)''
and inserting ``subsection (c)''.
(ii) Section 1131(b)(1) of such Act is
amended by striking ``section 201(g)(1)'' and
inserting ``section 201(f)(1)''.
(e) Other Conforming Amendments to Social Security Act.--
(1) Title ii.--Title II of the Social Security Act (42
U.S.C. 401 et seq.) is amended--
(A) in section 202(x)(3)(B)(iii), by striking ``the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund, as
appropriate,'' and inserting ``the Social Security
Trust Fund'';
(B) in section 206(d)(5), by striking ``the Federal
Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund, as
appropriate'' and inserting ``the Social Security Trust
Fund'';
(C) in section 206(e)(3)(B), by striking ``the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund'' and
inserting ``the Social Security Trust Fund'';
(D) in section 208(b)(5)(A), by striking ``the
Federal Old-Age and Survivors Insurance Trust Fund, or
the Federal Disability Insurance Trust Fund, as
appropriate'' and inserting ``the Social Security Trust
Fund'';
(E) in section 215(i)(1)(F)--
(i) in clause (i)--
(I) by striking ``the combined
balance in the Federal Old-Age and
Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust
Fund'' and inserting ``the balance in
the Social Security Trust Fund''; and
(II) by striking ``and reduced by
the outstanding amount of any loan
(including interest thereon)
theretofore made to either such Fund
from the Federal Hospital Insurance
Trust Fund under section 201(l)''; and
(ii) in clause (ii)--
(I) by striking ``the Federal Old-
Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance
Trust Fund'' and inserting ``the Social
Security Trust Fund''; and
(II) by striking ``(other than
payments'' and all that follows through
``from that Account'';
(F) in section 217(g)(2), by inserting after the
first sentence the following: ``For purposes of any
such revision of the amount determined under paragraph
(1) that occurs in a year that begins after the year in
which the Social Security Expansion Act is enacted, any
reference in such paragraph to the Federal Old-Age and
Survivors Insurance Trust Fund or the Federal
Disability Insurance Trust Fund shall be deemed to be a
reference to the Social Security Trust Fund.'';
(G) in section 221(e)--
(i) by striking ``Trust Funds'' each place
it appears and inserting ``Trust Fund''; and
(ii) by striking the last sentence;
(H) in section 221(f), by striking ``Trust Funds''
and inserting ``Trust Fund'';
(I) in section 222(d)--
(i) in the section heading, by striking
``Trust Funds'' and inserting ``Trust Fund'';
(ii) in paragraph (1), by striking ``to the
end that savings will accrue to the Trust Funds
as a result of rehabilitating such individuals,
there are authorized to be transferred from the
Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust
Fund'' and inserting ``to the end that savings
will accrue to the Trust Fund as a result of
rehabilitating such individuals, there are
authorized to be transferred from the Social
Security Trust Fund''; and
(iii) by amending paragraph (4) to read as
follows:
``(4) The Commissioner of Social Security shall determine according
to such methods and procedures as the Commissioner may deem appropriate
the total amount to be reimbursed for the cost of services under this
subsection.'';
(J) in section 228(g)--
(i) in the section heading, by striking
``Federal Old-Age and Survivors Insurance Trust
Fund'' and inserting ``Social Security Trust
Fund''; and
(ii) in the matter preceding paragraph (1),
by striking ``Federal Old-Age and Survivors
Insurance Trust Fund'' and inserting ``Social
Security Trust Fund'';
(K) in section 231(c), by striking ``Trust Funds''
each place it appears and inserting ``Trust Fund''; and
(L) in section 234(a)(1), by striking ``Trust
Funds'' and inserting ``Trust Fund''.
(2) Title vii.--Title VII of the Social Security Act (42
U.S.C. 901 et seq.) is amended--
(A) in section 703(j), by striking ``Federal
Disability Insurance Trust Fund, the Federal Old-Age
and Survivors Insurance Trust Fund,'' and inserting
``Social Security Trust Fund'';
(B) in section 708(c), by striking ``the `OASDI
trust fund ratio' under section 201(l),'' after
``computing'';
(C) in section 709--
(i) in subsection (a), by striking
``Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust
Fund'' and inserting ``Social Security Trust
Fund''; and
(ii) in subsection (b)--
(I) in paragraph (1), by striking
``section 201(l) or''; and
(II) in paragraph (2), by striking
``Federal Old-Age and Survivors
Insurance Trust Fund and the Federal
Disability Insurance Trust Fund'' and
inserting ``Social Security Trust
Fund''; and
(D) in section 710--
(i) in subsection (a), by striking
``Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust
Fund'' and inserting ``Social Security Trust
Fund''; and
(ii) in subsection (b)--
(I) by striking ``any Trust Fund
specified in subsection (a)'' and
inserting ``the Social Security Trust
Fund''; and
(II) by striking ``payments from
any such Trust Fund'' and inserting
``payments from the Social Security
Trust Fund''.
(3) Title xi.--Title XI of the Social Security Act (42
U.S.C. 1301 et seq.) is amended--
(A) in section 1106(b), by striking ``the Federal
Old-Age and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund'' and inserting ``the
Social Security Trust Fund'';
(B) in section 1129(e)(2)(A), by striking ``the
Federal Old-Age and Survivors Insurance Trust Fund or
the Federal Disability Insurance Trust Fund, as
determined appropriate by the Secretary'' and inserting
``the Social Security Trust Fund'';
(C) in sections 1131(b)(2) and 1140(c)(2), by
striking ``the Federal Old-Age and Survivors Insurance
Trust Fund'' and inserting ``the Social Security Trust
Fund'';
(D) in section 1145(c)--
(i) by striking paragraphs (1) and (2) and
inserting the following:
``(1) the Social Security Trust Fund;''; and
(ii) by redesignating paragraphs (3) and
(4) as paragraphs (2) and (3), respectively;
and
(E) in section 1148(j)(1)(A)--
(i) in the first sentence, by striking
``the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance
Trust Fund'' and inserting ``the Social
Security Trust Fund''; and
(ii) by striking the second sentence.
(4) Title xviii.--Title XVIII of the Social Security Act
(42 U.S.C. 1395) is amended--
(A) in section 1817(g), by striking ``Federal Old-
Age and Survivors Insurance Trust Fund and from the
Federal Disability Insurance Trust Fund'' and inserting
``Social Security Trust Fund'';
(B) in section 1840(a)(2), by striking ``Federal
Old-Age and Survivors Insurance Trust Fund or the
Federal Disability Insurance Trust Fund'' and inserting
``Social Security Trust Fund''; and
(C) in section 1841(f), by striking ``Federal Old-
Age and Survivors Insurance Trust Fund and from the
Federal Disability Insurance Trust Fund'' and inserting
``Social Security Trust Fund''.
(f) Conforming Amendments Outside of Social Security Act.--
(1) Budget.--
(A) Off-budget exemption.--Section 405(a) of the
Congressional Budget Act of 1974 (2 U.S.C. 655(a)) is
amended by striking ``Federal Old-Age and Survivors
Insurance and Federal Disability Insurance Trust
Funds'' and inserting ``Social Security Trust Fund''.
(B) Sequestration exemption.--Section 255(g)(1)(A)
of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended by
striking ``Payments to Social Security Trust Funds''
and inserting ``Payments to the Social Security Trust
Fund''.
(2) Tax.--
(A) Taxable wages.--Section 3121(l)(4) of the
Internal Revenue Code of 1986 is amended by striking
``Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund'' and
inserting ``Social Security Trust Fund''.
(B) Overpayments.--
(i) Section 6402(d)(3)(C) of the Internal
Revenue Code of 1986 is amended by striking
``Federal Old-Age and Survivors Insurance Trust
Fund or the Federal Disability Insurance Trust
Fund, whichever is certified to the Secretary
as appropriate by the Commissioner of Social
Security'' and inserting ``Social Security
Trust Fund''.
(ii) Subsection (f)(2)(B) of section 3720A
of title 31, United States Code, is amended by
striking ``Federal Old-Age and Survivors
Insurance Trust Fund or the Federal Disability
Insurance Trust Fund, whichever is certified to
the Secretary of the Treasury as appropriate by
the Commissioner of Social Security'' and
inserting ``Social Security Trust Fund''.
(3) False claims penalties.--Subsection (g)(2) of section
3806 of title 31, United States Code, is amended--
(A) in subparagraph (B)--
(i) by striking ``Secretary of Health and
Human Services'' and inserting ``Commissioner
of Social Security''; and
(ii) by striking ``Federal Old-Age and
Survivors Insurance Trust Fund'' and inserting
``Social Security Trust Fund''; and
(B) in subparagraph (C)--
(i) by striking ``Secretary of Health and
Human Services'' and inserting ``Commissioner
of Social Security''; and
(ii) by striking ``Federal Disability
Insurance Trust Fund'' and inserting ``Social
Security Trust Fund''.
(4) Railroad retirement board.--Section 7 of the Railroad
Retirement Act of 1974 (45 U.S.C. 231f) is amended--
(A) in subsection (b)(2), by striking ``Federal
Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund'' and inserting
``Social Security Trust Fund'';
(B) in subsection (c)(2)--
(i) by striking ``Secretary of Health,
Education, and Welfare'' each time it appears
and inserting ``Commissioner of Social
Security''; and
(ii) by striking ``Federal Old-Age and
Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund,'' each time it
appears and inserting ``Social Security Trust
Fund''; and
(C) in subsection (c)(4), by striking ``Federal
Old-Age and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund,'' and inserting
``Social Security Trust Fund''.
(g) Rule of Construction.--Effective beginning on January 1 of the
first calendar year beginning after the date of the enactment of this
section, any reference in law to the ``Federal Old-Age and Survivors
Insurance Trust Fund'' or the ``Federal Disability Insurance Trust
Fund'' is deemed to be a reference to the Social Security Trust Fund.
(h) Effective Date.--The amendments made by this section shall take
effect on January 1 of the first calendar year beginning after the date
of the enactment of this section.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
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