Social Security Expansion: Increased Benefits, Caregiver Credits, and Investment Tax Hike.
This Act aims to enhance retirement security by increasing Social Security benefits for current and future recipients while strengthening the system's finances. Key changes include raising the tax on investment income for high earners, introducing deemed wages for family caregivers, and boosting minimum benefits for lifetime low earners. Furthermore, the waiting period for disability benefits is eliminated, providing faster financial assistance to those in need.
Key points
The Net Investment Income Tax increases from 3.8% to 6.8% for high earners, with the additional revenue directed to Social Security trust funds.
Introduction of 'deemed wages' for individuals providing care for dependent relatives (children under 16 or chronically dependent individuals), allowing them to build Social Security credits and increase future benefits.
Elimination of the 5-month waiting period for Disability Insurance Benefits and surviving spouse benefits, ensuring quicker access to financial support.
Increase in the minimum Social Security benefit for individuals who worked throughout their lives but had low earnings, based on the number of years in the workforce.
Adoption of a new inflation index (Consumer Price Index for Elderly Consumers) for calculating annual cost-of-living adjustments (COLA), intended to better reflect the living costs of seniors.
A 5% benefit increase for long-term eligible individuals (those aged 82 or who have received benefits for 240 months).
Expired
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