[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1904 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1904

To protect our Social Security system and improve benefits for current 
                        and future generations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 2015

Mr. Blumenthal introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To protect our Social Security system and improve benefits for current 
                        and future generations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security 2100 Act''.

                    TITLE I--STRENGTHENING BENEFITS

SEC. 101. ACROSS-THE-BOARD BENEFIT INCREASE.

    (a) In General.--Section 215(a)(1)(A)(i) of the Social Security Act 
(42 U.S.C. 415(a)(1)(A)(i)) is amended by striking ``90 percent'' and 
inserting ``93 percent''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply with respect to monthly insurance benefits payable for 
        any month after December 2015.
            (2) Recomputation of primary insurance amounts.--
        Notwithstanding section 215(f) of the Social Security Act, the 
        Commissioner of Social Security shall recompute primary 
        insurance amounts originally computed for months prior to 
        January 2016 to the extent necessary to carry out the 
        amendments made by this section.

SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES.

    (a) In General.--Section 215(i)(1) of the Social Security Act (42 
U.S.C. 415(i)(1)) is amended by adding at the end the following new 
subparagraph:
            ``(H) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published by the 
        Bureau of Labor Statistics of the Department of Labor).''.
    (b) Application to Pre-1979 Law.--
            (1) In general.--Section 215(i)(1) of the Social Security 
        Act as in effect in December 1978, and as applied in certain 
        cases under the provisions of such Act as in effect after 
        December 1978, is amended by adding at the end the following 
        new subparagraph:
            ``(D) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published by the 
        Bureau of Labor Statistics of the Department of Labor).''.
            (2) Conforming change.--Section 215(i)(4) of the Social 
        Security Act (42 U.S.C. 415(i)(4)) is amended by inserting 
        ``and by section 102 of the Social Security 2100 Act'' after 
        ``1986''.
    (c) No Effect on Adjustments Under Other Laws.--Section 215(i) of 
the Social Security Act (42 U.S.C. 415(i)) is amended by adding at the 
end the following:
    ``(6) Any provision of law (other than in this title, title VIII, 
or title XVI) which provides for adjustment of an amount based on a 
change in benefit amounts resulting from a determination made under 
this subsection shall be applied and administered without regard to the 
amendments made by section 102 of the Social Security 2100 Act.''.
    (d) Publication of Consumer Price Index for Elderly Consumers.--The 
Bureau of Labor Statistics of the Department of Labor shall prepare and 
publish the index authorized by section 191 of the Older Americans 
Amendments Act of 1987 (29 U.S.C. 2 note) for each calendar month, 
beginning with July of the calendar year following the calendar year in 
which this Act is enacted, and such index shall be known as the 
``Consumer Price Index for Elderly Consumers''.
    (e) Effective Date.--The amendments made by subsection (a) shall 
apply to determinations made with respect to cost-of-living computation 
quarters (as defined in section 215(i)(1)(B) of the Social Security Act 
(42 U.S.C. 415(i)(1)(B))) ending on or after September 30 of the second 
calendar year following the calendar year in which this Act is enacted.

SEC. 103. INCREASE IN MINIMUM BENEFIT FOR LIFETIME LOW EARNERS BASED ON 
              YEARS IN THE WORKFORCE.

    (a) In General.--Section 215(a)(1) of the Social Security Act (42 
U.S.C. 415(a)(1)) is amended--
            (1) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
    ``(D)(i) Effective with respect to the benefits of individuals who 
become eligible for old-age insurance benefits or disability insurance 
benefits (or die before becoming so eligible) after 2015, no primary 
insurance amount computed under subparagraph (A) may be less than the 
greater of--
            ``(I) the minimum monthly amount computed under 
        subparagraph (C); or
            ``(II) in the case of an individual who has more than 10 
        years of work (as defined in clause (iv)(I)), the alternative 
        minimum amount determined under clause (ii).
    ``(ii)(I) The alternative minimum amount determined under this 
clause is the applicable percentage of \1/12\ of the annual dollar 
amount determined under clause (iii) for the year in which the amount 
is determined.
    ``(II) For purposes of subclause (I), the applicable percentage is 
the percentage specified in connection with the number of years of 
work, as set forth in the following table:

``If the number of years                                 The applicable
  of work is:                                            percentage is:
        11...........................................     6.25 percent 
        12...........................................    12.50 percent 
        13...........................................    18.75 percent 
        14...........................................    25.00 percent 
        15...........................................    31.25 percent 
        16...........................................    37.50 percent 
        17...........................................    43.75 percent 
        18...........................................    50.00 percent 
        19...........................................    56.25 percent 
        20...........................................    62.50 percent 
        21...........................................    68.75 percent 
        22...........................................    75.00 percent 
        23...........................................    81.25 percent 
        24...........................................    87.50 percent 
        25...........................................    93.75 percent 
        26...........................................   100.00 percent 
        27...........................................   106.25 percent 
        28...........................................   112.50 percent 
        29...........................................   118.75 percent 
        30 or more...................................   125.00 percent.
    ``(iii) The annual dollar amount determined under this clause is--
            ``(I) for calendar year 2016, the poverty guideline for 
        2015; and
            ``(II) for any calendar year after 2016, the annual dollar 
        amount for 2016 multiplied by the ratio of--
                    ``(aa) the national average wage index (as defined 
                in section 209(k)(1)) for the second calendar year 
                preceding the calendar year for which the determination 
                is made, to
                    ``(bb) the national average wage index (as so 
                defined) for 2014.
    ``(iv) For purposes of this subparagraph--
            ``(I) the term `year of work' means, with respect to an 
        individual, a year to which 4 quarters of coverage have been 
        credited based on such individual's wages and self-employment 
        income; and
            ``(II) the term `poverty guideline for 2015' means the 
        annual poverty guideline for 2015 (as updated annually in the 
        Federal Register by the Department of Health and Human Services 
        under the authority of section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981) as applicable to a single 
        individual.''.
    (b) Recomputation.--Notwithstanding section 215(f)(1) of the Social 
Security Act, the Commissioner of Social Security shall recompute 
primary insurance amounts originally computed for months prior to 
November 2015 to the extent necessary to carry out the amendments made 
by this section.
    (c) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C. 
409(k)(1)) is amended by inserting ``215(a)(1)(E),'' after 
``215(a)(1)(D),''.

SEC. 104. INCREASE IN THRESHOLD AMOUNTS AND RATE FOR INCLUSION OF 
              SOCIAL SECURITY BENEFITS IN INCOME.

    (a) In General.--Subsection (a) of section 86 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(a) In General.--Gross income for the taxable year of any 
taxpayer described in subsection (b) (notwithstanding section 207 of 
the Social Security Act) includes social security benefits in an amount 
equal to the lesser of--
            ``(1) 85 percent of the social security benefits received 
        during the taxable year, or
            ``(2) one-half of the excess described in subsection 
        (b)(1).''.
    (b) Base Amount.--Subsection (c) of section 86 of such Code is 
amended to read as follows:
    ``(c) Base Amount.--For purposes of this section, the term `base 
amount' means--
            ``(1) except as otherwise provided in this paragraph, 
        $50,000,
            ``(2) $100,000 in the case of a joint return, and
            ``(3) zero in the case of a taxpayer who--
                    ``(A) is married as of the close of the taxable 
                year (within the meaning of section 7703) but does not 
                file a joint return for such year, and
                    ``(B) does not live apart from his spouse at all 
                times during the taxable year.''.
    (c) Hospital Insurance Trust Fund Held Harmless.--Section 121(e)(1) 
of the Social Security Amendments of 1986 (42 U.S.C. 401 note) is 
amended by adding at the end the following new subparagraph:
            ``(C) The amounts appropriated to the hospital insurance 
        trust fund by subparagraph (B) shall be determined, and 
        transferred from the general fund, at such times and in such 
        manner so as to replicate, to the extent possible, the 
        appropriations and transfers which would have occurred with 
        respect to such trust fund had subsections (a) and (b) of 
        section 104 of the Social Security 2100 Act not been 
        enacted.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

                 TITLE II--STRENGTHENING THE TRUST FUND

SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOYMENT INCOME ABOVE 
              CONTRIBUTION AND BENEFIT BASE AFTER 2015.

    (a) Determination of Wages Above Contribution and Benefit Base 
After 2015.--
            (1) Amendments to the internal revenue code.--
                    (A) In general.--Paragraph (1) of section 3121(a) 
                of the Internal Revenue Code of 1986 is amended by 
                inserting after ``such calendar year.'' the following: 
                ``The preceding sentence shall apply only to calendar 
                years for which the contribution and benefit base (as 
                so determined) is less than $400,000, and, for such 
                calendar years, only to the extent remuneration paid to 
                such employee by such employer with respect to 
                employment does not exceed $400,000.''.
                    (B) Conforming amendment.--Paragraph (1) of section 
                3121(a) of the Internal Revenue Code of 1986 is amended 
                by striking ``Act) to'' and inserting ``Act), or in 
                excess of $400,000, to''.
            (2) Amendment to the social security act.--Section 
        209(a)(1)(I) of the Social Security Act (42 U.S.C. 
        409(a)(1)(I)) is amended by inserting before the semicolon at 
        the end the following: ``except that this subparagraph shall 
        apply only to calendar years for which the contribution and 
        benefit base (as so determined) is less than $400,000, and, for 
        such calendar years, only to the extent remuneration paid to 
        such employee by such employer with respect to employment does 
        not exceed $400,000''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to remuneration paid in calendar years 
        after 2015.
    (b) Determination of Self-Employment Income Above Contribution and 
Benefit Base After 2015.--
            (1) Amendments to the internal revenue code.--
                    (A) In general.--Paragraph (1) of section 1402(b) 
                of the Internal Revenue Code of 1986 is amended to read 
                as follows:
            ``(1) in the case of the tax imposed by section 1401(a), an 
        amount equal to--
                    ``(A) $400,000, reduced (but not below zero) by
                    ``(B) the sum of--
                            ``(i) the part of the net earnings from 
                        self-employment (if any) which is not in excess 
                        of--
                                    ``(I) the amount equal to the 
                                contribution and benefit base (as 
                                determined under section 230 of the 
                                Social Security Act) which is effective 
                                for the calendar year in which such 
                                taxable year begins, minus
                                    ``(II) the amount of the wages paid 
                                to such individual during such taxable 
                                year, plus
                            ``(ii) the amount of the wages paid to such 
                        individual during such taxable year which is in 
                        excess of the amount in clause (i)(I); or''.
                    (B) Phaseout.--Subsection (b) of section 1402 of 
                the Internal Revenue Code of 1986 is amended by adding 
                at the end the following: ``Paragraph (1) shall apply 
                only to taxable years beginning in calendar years for 
                which the contribution and benefit base (as determined 
                under section 230 of the Social Security Act) is less 
                than $400,000.''.
            (2) Amendments to the social security act.--
                    (A) In general.--Section 211(b)(1) of the Social 
                Security Act (42 U.S.C. 411(b)) is amended--
                            (i) in subparagraph (I)--
                                    (I) by inserting ``and before 
                                2015'' after ``1974''; and
                                    (II) by striking ``or'' at the end; 
                                and
                            (ii) by adding at the end the following:
                    ``(J) For any taxable year beginning in any 
                calendar year after 2015, an amount equal to--
                            ``(i) $400,000, reduced (but not below 
                        zero) by
                            ``(ii) the sum of--
                                    ``(I) the part of the net earnings 
                                from self-employment (if any) which is 
                                not in excess of--
                                            ``(aa) the amount equal to 
                                        the contribution and benefit 
                                        base (as determined under 
                                        section 230) which is effective 
                                        for the calendar year in which 
                                        such taxable year begins, minus
                                            ``(bb) the amount of the 
                                        wages paid to such individual 
                                        during such taxable year, plus
                                    ``(II) the amount of the wages paid 
                                to such individual during such taxable 
                                year which is in excess of the amount 
                                in subclause (I)(aa); or''.
                    (B) Phaseout.--Section 211(b) of the Social 
                Security Act (42 U.S.C. 411(b)) is amended by adding at 
                the end the following: ``Paragraph (1) shall apply only 
                to taxable years beginning in calendar years for which 
                the contribution and benefit base (as determined under 
                section 230) is less than $400,000.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to net earnings from self-employment derived, and 
        remuneration paid, in calendar years after 2015.

SEC. 202. INCLUSION OF EARNINGS OVER $400,000 IN SOCIAL SECURITY 
              BENEFIT FORMULA.

    (a) Inclusion of Earnings Over $400,000 in Determination of Primary 
Insurance Amounts.--Section 215(a)(1)(A) of the Social Security Act (42 
U.S.C. 415(a)(1)(A)) is amended--
            (1) in clause (ii), by striking ``and'' at the end;
            (2) in clause (iii), by inserting ``and'' at the end; and
            (3) by inserting after clause (iii) the following:
            ``(iv) 2 percent of the individual's excess average indexed 
        monthly earnings (as defined in subsection (b)(5)(A)).''.
    (b) Definition of Excess Average Indexed Monthly Earnings.--Section 
215(b) of the Social Security Act (42 U.S.C. 415(b)) is amended--
            (1) by striking ``wages'' and ``self-employment income'' 
        each place such terms appear and inserting ``basic wages'' and 
        ``basic self-employment income'', respectively; and
            (2) by adding at the end the following:
    ``(5)(A) An individual's excess average indexed monthly earnings 
shall be equal to the amount of the individual's average indexed 
monthly earnings that would be determined under this subsection by 
substituting `excess wages' for `basic wages' and `excess self-
employment income' for `basic self-employment income' each place such 
terms appear in this subsection (except in this paragraph).
    ``(B) For purposes of this subsection--
            ``(i) the term `basic wages' means that portion of the 
        wages of an individual paid in a year that does not exceed the 
        contribution and benefit base for the year;
            ``(ii) the term `basic self-employment income' means that 
        portion of the self-employment income of an individual credited 
        to a year that does not exceed an amount equal to the 
        contribution and benefit base for the year minus the amount of 
        the wages paid to the individual in the year;
            ``(iii) the term `excess wages' means that portion of the 
        wages of an individual paid in a year after 2015 in excess of 
        the higher of $400,000 or the contribution and benefit base for 
        the year; and
            ``(iv) the term `excess self-employment income' means that 
        portion of the self-employment income of an individual credited 
        to a year after 2015 in excess of the higher of $400,000 or 
        such contribution and benefit base.''.
    (c) Conforming Amendment.--Section 215(e)(1) of the Social Security 
Act (42 U.S.C. 415(e)(1)) is amended by inserting ``and before 2016'' 
after ``1974''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to individuals who initially become eligible (within 
the meaning of section 215(a)(3)(B) of the Social Security Act) for 
old-age or disability insurance benefits under title II of the Social 
Security Act, or who die (before becoming eligible for such benefits), 
in any calendar year after 2015.

SEC. 203. INCREASE IN SOCIAL SECURITY TAX RATE.

    (a) Tax on Employees.--The table in subsection (a) of section 3101 
of the Internal Revenue Code of 1986 is amended to read as follows:

``In cases of wages                                     The rate of tax
  received during:                                            shall be:
        1990 or any calendar year before 2018........     6.20 percent 
        2018.........................................     6.25 percent 
        2019.........................................     6.30 percent 
        2020.........................................     6.35 percent 
        2021.........................................     6.40 percent 
        2022.........................................     6.45 percent 
        2023.........................................     6.50 percent 
        2024.........................................     6.55 percent 
        2025.........................................     6.60 percent 
        2026.........................................     6.65 percent 
        2027.........................................     6.70 percent 
        2028.........................................     6.75 percent 
        2029.........................................     6.80 percent 
        2030.........................................     6.85 percent 
        2031.........................................     6.90 percent 
        2032.........................................     6.95 percent 
        2033.........................................     7.00 percent 
        2034.........................................     7.05 percent 
        2035.........................................     7.10 percent 
        2036.........................................     7.15 percent 
        2037.........................................     7.20 percent 
        2038.........................................     7.25 percent 
        2039.........................................     7.30 percent 
        2040.........................................     7.35 percent 
        any calendar year after 2040 and before 2080.     7.40 percent 
        2080.........................................     7.45 percent 
        2081.........................................     7.50 percent 
        2082.........................................     7.55 percent 
        2083.........................................     7.60 percent 
        2084.........................................  7.65 percent.''.
    (b) Tax on Employers.--The table in subsection (a) of section 3111 
of the Internal Revenue Code of 1986 is amended to read as follows:

``In cases of wages                                     The rate of tax
  received during:                                            shall be:
        1990 or any calendar year before 2018........     6.20 percent 
        2018.........................................     6.25 percent 
        2019.........................................     6.30 percent 
        2020.........................................     6.35 percent 
        2021.........................................     6.40 percent 
        2022.........................................     6.45 percent 
        2023.........................................     6.50 percent 
        2024.........................................     6.55 percent 
        2025.........................................     6.60 percent 
        2026.........................................     6.65 percent 
        2027.........................................     6.70 percent 
        2028.........................................     6.75 percent 
        2029.........................................     6.80 percent 
        2030.........................................     6.85 percent 
        2031.........................................     6.90 percent 
        2032.........................................     6.95 percent 
        2033.........................................     7.00 percent 
        2034.........................................     7.05 percent 
        2035.........................................     7.10 percent 
        2036.........................................     7.15 percent 
        2037.........................................     7.20 percent 
        2038.........................................     7.25 percent 
        2039.........................................     7.30 percent 
        2040.........................................     7.35 percent 
        any calendar year after 2040 and before 2080.     7.40 percent 
        2080.........................................     7.45 percent 
        2081.........................................     7.50 percent 
        2082.........................................     7.55 percent 
        2083.........................................     7.60 percent 
        2084.........................................  7.65 percent.''.
    (c) Self-Employment Income.--The table in subsection (a) of section 
1401 of the Internal Revenue Code of 1986 is amended to read as 
follows:

``In cases of wages                                     The rate of tax
  received during:                                            shall be:
        1990 or any calendar year before 2018........    12.40 percent 
        2018.........................................    12.50 percent 
        2019.........................................    12.60 percent 
        2020.........................................    12.70 percent 
        2021.........................................    12.80 percent 
        2022.........................................    12.90 percent 
        2023.........................................    13.00 percent 
        2024.........................................    13.10 percent 
        2025.........................................    13.20 percent 
        2026.........................................    13.30 percent 
        2027.........................................    13.40 percent 
        2028.........................................    13.50 percent 
        2029.........................................    13.60 percent 
        2030.........................................    13.70 percent 
        2031.........................................    13.80 percent 
        2032.........................................    13.90 percent 
        2033.........................................    14.00 percent 
        2034.........................................    14.10 percent 
        2035.........................................    14.20 percent 
        2036.........................................    14.30 percent 
        2037.........................................    14.40 percent 
        2038.........................................    14.50 percent 
        2039.........................................    14.60 percent 
        2040.........................................    14.70 percent 
        any calendar year after 2040 and before 2080.    14.80 percent 
        2080.........................................    14.90 percent 
        2081.........................................    15.00 percent 
        2082.........................................    15.10 percent 
        2083.........................................    15.20 percent 
        2084......................................... 15.30 percent.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to remuneration received, and taxable years beginning, after 
December 31, 2015.

SEC. 204. REALLOCATION OF PAYROLL TAX REVENUE FROM THE OLD-AGE AND 
              SURVIVORS INSURANCE TRUST FUND TO THE FEDERAL DISABILITY 
              INSURANCE TRUST FUND.

            (1) Wages.--Section 201(b)(1) of the Social Security Act 
        (42 U.S.C. 401(b)(1)) is amended by striking ``and (R) 1.80 per 
        centum of the wages (as so defined) paid after December 31, 
        1999, and so reported'' and inserting ``(R) 1.80 per centum of 
        the wages (as so defined) paid after December 31, 1999, and 
        before January 1, 2015, and so reported, (S) 2.8 per centum of 
        the wages (as so defined) paid after December 31, 2014, and 
        before January 1, 2016, and so reported, (T) 2.4 per centum of 
        the wages (as so defined) paid after December 31, 2015, and 
        before January 1, 2017, and so reported, (U) 2.2 per centum of 
        the wages (as so defined) paid after December 31, 2016, and 
        before January 1, 2020, and so reported, (V) 2.0 per centum of 
        the wages (as so defined) paid after December 31, 2019, and 
        before January 1, 2026, and so reported, and (W) 1.8 per centum 
        of the wages (as so defined) paid after December 31, 2025, and 
        so reported''.
            (2) Self-employment income.--Section 201(b)(2) of such Act 
        (42 U.S.C. 401(b)(2)) is amended by striking ``and (R) 1.80 per 
        centum of the amount of self-employment income (as so defined) 
        so reported for any taxable year beginning after December 31, 
        1999'' and inserting ``(R) 1.80 per centum of the amount of 
        self-employment income (as so defined) so reported for any 
        taxable year beginning after December 31, 1999, and before 
        January 1, 2015, (S) 2.8 per centum of the amount of self-
        employment income (as so defined) so reported for any taxable 
        year beginning after December 31, 2014, and before January 1, 
        2016, (T) 2.4 per centum of the amount of self-employment 
        income (as so defined) so reported for any taxable year 
        beginning after December 31, 2015, and before January 1, 2017, 
        (U) 2.2 per centum of the amount of self-employment income (as 
        so defined) so reported for any taxable year beginning after 
        December 31, 2016, and before January 1, 2020, (V) 2.0 per 
        centum of the amount of self-employment income (as so defined) 
        so reported for any taxable year beginning after December 31, 
        2019, and before January 1, 2026, and (W) 1.8 per centum of the 
        amount of self-employment income (as so defined) so reported 
        for any taxable year beginning after December 31, 2025''.
            (3) Effective date.--The amendments made by this section 
        shall apply with respect to wages paid after December 31, 2014, 
        and self-employment income for taxable years beginning after 
        such date.
                                 <all>