Safeguarding American Families and Expanding Social Security Act of 2025
Summary
The "Safeguarding American Families and Expanding Social Security Act of 2025" aims to bolster the Social Security system by increasing benefits and ensuring its long-term stability. It proposes changes to taxable wage determination, adjustments to the primary insurance amount formula, and modifications to cost-of-living increases. The bill also introduces a Consumer Price Index for Elderly Consumers to better reflect the spending habits of older Americans.
Expected Effects
The bill would lead to higher Social Security benefits for both current and future recipients. It would also change how cost-of-living adjustments are calculated, potentially providing more accurate increases for seniors. Higher earners would likely contribute more to the system through changes in taxable wage calculations.
Potential Benefits
- Increased Social Security benefits for current and future beneficiaries.
- A more accurate cost-of-living adjustment for elderly consumers.
- Strengthened long-term solvency of the Social Security system.
- Recomputation of benefits for those who became eligible before 2026, potentially increasing their payments.
- Inclusion of surplus earnings in benefit determinations, leading to higher payments for some.
Most Benefited Areas:
Potential Disadvantages
- Higher taxes on earnings above the contribution and benefit base, affecting high-income earners.
- Potential for increased government spending, which could impact the national debt.
- The changes to the primary insurance amount formula may not benefit all beneficiaries equally.
- The introduction of a new Consumer Price Index could create confusion or controversy.
- The long-term effects of the changes are uncertain and depend on various economic factors.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's provisions generally align with the Constitution's mandate to "promote the general Welfare" (Preamble). Congress has the power to tax and spend for the general welfare, as outlined in Article I, Section 8. The specific mechanisms for adjusting Social Security benefits and taxable wages fall under Congress's legislative authority.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).