Social Security benefits would rise under new House bill

What does this do?

This bill would increase monthly Social Security payments for current and future retirees and disabled workers by changing how benefits are calculated. It would also update the formula used for annual cost-of-living increases to one that tracks how older Americans actually spend money, which would generally produce larger yearly raises. It creates a stronger minimum benefit for long-term low-wage workers, extends benefits for college students up to age 22 who have a disabled or deceased parent, and merges the two existing Social Security trust funds into one.

Who does it affect?

People who receive or will receive Social Security retirement or disability benefits would see higher payments. Higher-income workers, business owners, and investors would face new or increased taxes under this bill.

Why does it matter?

Raising benefits would increase the amount of money Social Security pays out each year. The tax changes are designed to bring in more money to keep the program financially stable over time.

What does it cost, and who pays?

• Expands SS payroll tax to exempt wages
• Investment tax rises 3.8%→16.2% for SS