H.R.1700 - Social Security Expansion Act (119th Congress)
Summary
H.R. 1700, the Social Security Expansion Act, proposes significant changes to the Social Security system. The bill aims to enhance benefits and ensure long-term solvency through various measures, including increased benefits, changes to cost-of-living adjustments, and increased payroll taxes.
Key provisions include an across-the-board benefit increase, a revised formula for cost-of-living increases using the CPI-E (Consumer Price Index for Elderly Consumers), and an increase in the minimum benefit for lifetime low earners. The bill also extends benefit eligibility for children who are full-time students and introduces a payroll tax on remuneration up to the contribution and benefit base and more than $250,000.
Finally, the bill establishes a new Social Security Trust Fund and increases taxes on investment gains to fund these expansions.
Expected Effects
If enacted, this bill would substantially increase Social Security benefits for many recipients. It would also shift the tax burden to higher earners and investment income.
The change to CPI-E could result in larger cost-of-living adjustments for seniors. The creation of a dedicated Social Security Trust Fund aims to ensure the program's long-term financial stability.
Potential Benefits
- Increased benefits for current and future Social Security recipients.
- Improved cost-of-living adjustments that more accurately reflect the spending patterns of seniors.
- Enhanced financial security for lifetime low earners.
- Extended benefits for children in full-time education up to age 22.
- Dedicated funding stream through increased taxes on high earners and investment gains.
Potential Disadvantages
- Increased payroll taxes on earnings above $250,000 could negatively impact high-income earners.
- Higher taxes on investment gains may discourage investment and economic activity.
- The long-term solvency of the Social Security Trust Fund remains uncertain and depends on various economic factors.
- Potential for unintended consequences from the shift to CPI-E, requiring careful monitoring.
- Some may argue that the expansion of benefits is fiscally irresponsible given existing national debt.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's provisions related to taxation align with the power granted to Congress in Article I, Section 8, Clause 1 of the Constitution to lay and collect taxes for the general welfare. The establishment of a Social Security Trust Fund and the management of Social Security benefits fall under the implied powers necessary to execute the enumerated powers.
The expansion of benefits and eligibility criteria could be viewed as promoting the general welfare, as stated in the Preamble of the Constitution. However, the specific details of implementation and potential impacts on individual liberties and economic activity would require further scrutiny.
There is nothing in the document that appears to violate the US Constitution.
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).