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Strengthening Social Security: Higher Benefits, COLA Changes, and Tax Adjustments

This Act aims to strengthen the Social Security system by increasing future benefits for retirees and survivors and changing how annual cost-of-living adjustments are calculated. It introduces taxation on incomes above the current contribution cap to boost system funding. These changes are designed to provide higher benefits, especially for low and middle-income individuals and surviving spouses.
Key points
Higher Annual Raises (COLA): Annual cost-of-living adjustments will be calculated using a new inflation index (CPI-E) focused on elderly consumers, effective for computations starting September 2024.
Taxation of Earnings Above Cap: The bill phases out the exemption for wages above the current contribution base between 2025 and 2029, eventually subjecting all such earnings to Social Security taxes.
Improved Survivor Benefits: A new formula is introduced to calculate survivor benefits for widows and widowers in two-income households, capped at the benefit level of an average wage earner.
Increased Benefits for Lower Earners: The benefit calculation formula (bend points) is adjusted to provide higher retirement payments, effective for individuals becoming eligible starting in 2029.
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Additional Information
Print number: 118_HR_3261
Sponsor: Rep. Sánchez, Linda T. [D-CA-38]
Process start date: 2023-05-11
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Strengthening Social Security Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3261.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-05-11.

What are the main provisions?

Key points include:

  • Higher Annual Raises (COLA): Annual cost-of-living adjustments will be calculated using a new inflation index (CPI-E) focused on elderly consumers, effective for computations starting September 2024.
  • Taxation of Earnings Above Cap: The bill phases out the exemption for wages above the current contribution base between 2025 and 2029, eventually subjecting all such earnings to Social Security taxes.
  • Improved Survivor Benefits: A new formula is introduced to calculate survivor benefits for widows and widowers in two-income households, capped at the benefit level of an average wage earner.
  • Increased Benefits for Lower Earners: The benefit calculation formula (bend points) is adjusted to provide higher retirement payments, effective for individuals becoming eligible starting in 2029.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Sánchez, Linda T. [D-CA-38].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Work and Welfare.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Benefits Economy