S.770 - Social Security Expansion Act (119th Congress)
Summary
The Social Security Expansion Act aims to enhance Social Security benefits and ensure the program's long-term solvency. It proposes several key changes, including an across-the-board benefit increase, adjustments to cost-of-living calculations using the Consumer Price Index for Elderly Consumers (CPI-E), and an increase in the minimum benefit for lifetime low earners based on years in the workforce. The act also extends benefit eligibility for children who are full-time students up to age 22 in certain cases.
Expected Effects
The bill introduces new payroll taxes on remuneration above $250,000 and taxes on investment gains to fund these expansions. It also establishes a Social Security Trust Fund. If enacted, the bill would significantly increase Social Security benefits for many recipients, particularly low-income earners and students, while also increasing taxes on higher earners and investment income.
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 low-income workers with a longer work history.
- Extended benefits for students, allowing them to continue their education without losing support.
- Long-term solvency of the Social Security program.
Potential Disadvantages
- Increased taxes on high-income earners and investment income, potentially impacting investment and economic activity.
- Potential for increased government spending and debt if revenue projections are not met.
- Possible administrative challenges in implementing the new benefit calculations and tax provisions.
- Concerns about the impact on business owners and self-employed individuals due to changes in payroll and self-employment taxes.
- The shift to CPI-E could affect other government programs that use the standard CPI for adjustments.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's provisions related to taxation and spending fall under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8). The establishment of a Social Security Trust Fund and the management of Social Security benefits are within the scope of Congress's authority to regulate commerce and provide for the general welfare.
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).