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Social Security Enhancement: Increased Benefits and Tax Adjustments

This act introduces several changes to the Social Security system, aiming to increase benefits for low-income earners and long-term beneficiaries. It also modifies the taxation rules for income above a certain threshold and raises Social Security contribution rates. The goal is to improve the system's financial stability and enhance support for citizens.
Key points
Increased minimum benefits for low-wage earners, based on years in the workforce, effective from 2026.
Introduction of an increased benefit for Social Security beneficiaries who have been eligible for at least 16 years, gradually increasing to 100% after 20 years.
Extension of child's benefits for full-time post-secondary school students up to age 26, instead of the previous age 19.
Gradual taxation of income above the current Social Security contribution base, starting at 90% in 2026 and phasing out to 0% after 2035.
Gradual increase in Social Security tax rates for employees, employers, and self-employed individuals, reaching 6.50% for employees/employers and 13.0% for self-employed from 2031 onwards.
Increases in Social Security benefits will not affect eligibility for other federal or federally funded assistance programs.
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Additional Information
Print number: 119_HR_3517
Sponsor: Rep. Moore, Gwen [D-WI-4]
Process start date: 2025-05-20