Social Security Expansion Act
Key claim: The Social Security Expansion Act (HR1700) would increase Social Security benefits (including a new minimum benefit and student benefits to age 22), apply payroll taxes to earnings above $250,000, expand the net investment income tax, and merge the OASI and DI trust funds into a single Social Security Trust Fund.
Abstract
(HR1700 · 119th Congress) 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. Latest action (2025-02-27): Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
Why this matters
The Social Security Expansion Act is a significant proposed restructuring of a major entitlement’s financing, shifting more of the tax burden onto high earners (wages above $250k and investment income) to fund higher benefits for lower-income retirees and students. It ties together two distinct tax-code changes — payroll tax base expansion and NIIT broadening — that are often discussed separately, and would also consolidate the OASI and DI trust funds. Tracking it clarifies the tax-policy trade-offs at the center of ongoing Social Security solvency debates.