Social Security benefits would increase, and high earners would pay more taxes to strengthen the program.
This bill would boost Social Security payments for many, including an across-the-board raise and a higher minimum for low earners. It would also extend benefits for some student dependents. To help pay for these changes, the bill would increase taxes on high incomes and certain investment earnings.
Today, Social Security benefits are calculated using a specific formula, and yearly cost-of-living adjustments (COLAs) are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Child's insurance benefits for students generally stop at age 19. Payroll taxes apply up to a certain income limit, and investment income is taxed at 3.8 percent. The Social Security program uses two separate trust funds. If this bill becomes law, Social Security benefits would increase across-the-board, and COLAs would use the Consumer Price Index for Elderly Consumers (CPI-E). Minimum benefits for low earners would also go up. Child's insurance benefits for certain full-time students would continue until age 22. Payroll and self-employment taxes would apply to earnings above $250,000 (in addition to earnings up to the current limit). The tax on investment gains would increase to 16.2 percent and cover more types of income. Finally, the two existing Social Security trust funds would combine into one "Social Security Trust Fund."
S 770 · 119th Congress · February 27, 2025 · AI Summary by gemini-2.5-flash · 5/10
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16 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.