Bill > S770

This bill proposes comprehensive reforms to the Social Security program aimed at expanding benefits and ensuring its long-term financial sustainability. The key provisions include increasing the first bend point percentage for benefit calculations from 90% to 95%, which will provide a larger initial benefit for recipients. The bill introduces a new method for calculating cost-of-living adjustments using the Consumer Price Index for Elderly Consumers (CPI-E), which more accurately reflects the spending patterns of senior citizens. It also establishes a new minimum benefit for low-income workers that increases based on years worked, with potential benefits ranging from 6.25% to 125% of the poverty guideline. The legislation extends benefit eligibility for children who are full-time students up to age 22, expanding support for families. To fund these expansions, the bill introduces new taxes, including increasing the Medicare investment income tax from 3.8% to 16.2%, implementing payroll taxes on earnings above the current contribution and benefit base, and applying self-employment taxes to higher income levels. Additionally, the bill consolidates the existing Old-Age and Survivors Insurance and Disability Insurance Trust Funds into a single Social Security Trust Fund, streamlining the administrative structure and potentially improving the program's long-term financial management.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/770/all-info