Social Security Changes: Benefit Boosts and New Taxes Proposed
This bill proposes increasing Social Security benefits for current and future recipients, including raising the minimum benefit for long-term low earners and extending benefits for students up to age 22. Funding for these changes would come from applying Social Security taxes to earnings over $250,000 and increasing the tax on certain investment income.
Key points
Proposed across-the-board increase in Social Security benefits starting in 2027.
Changes how annual cost-of-living adjustments (inflation) are calculated, potentially leading to larger increases for seniors.
Increases the minimum benefit amount for individuals who worked many years but had low earnings.
Extends benefit eligibility for children of disabled or deceased workers up to age 22 if they are full-time students.
Applies Social Security payroll tax to earnings above $250,000 per year.
Increases the tax rate on certain investment income from 3.8% to 10%.
Expired
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