Short title; table of contents

(a)

Short title

This Act may be cited as the

Safeguarding American Families and Expanding Social Security Act of 2021

.(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Determination of taxable wages and self-employment income above contribution and benefit base after 2021.

Sec. 3. Adjustments to primary insurance amount formula and inclusion of surplus earnings for benefit determinations.

Sec. 4. Increase in benefit amounts for long-term eligible individuals.

Sec. 5. Computation of cost-of-living increases for Social Security benefits; consumer price index for elderly consumers.

Sec. 6. Deemed wages for caregivers of dependent relatives.

Sec. 7. Increase in minimum benefit for lifetime low earners based on years in the workforce.

Sec. 8. Elimination of disability waiting period for disability insurance benefits and surviving spouse benefits.

Sec. 9. Tax on investment gain.

Sec. 10. Holding SSI, Medicaid, and CHIP beneficiaries harmless.

Determination of taxable wages and self-employment income above contribution and benefit base after 2021

(a)

Determination of taxable wages above contribution and benefit base after 2021

(1)

Amendments to the Internal Revenue Code of 1986

Section 3121 of the Internal Revenue Code of 1986 is amended—(A)in subsection (a)(1), by inserting the applicable percentage (determined under subsection (c)(1)) of before that part of the remuneration; and(B)in subsection (c), by striking (c) Included and excluded service.—For purposes of this chapter, if and inserting the following:

(c)

Special rules for wages and employment

(1)

Applicable percentage of remuneration in determining taxable wages

For purposes of subsection (a)(1), the applicable percentage for a calendar year shall be equal to—(A)for 2022, 80 percent;(B)for 2023 through 2025, the applicable percentage under this paragraph for the previous year, decreased by 20 percentage points; and(C)for 2026 and each year thereafter, 0 percent.(2)

Included and excluded service

For purposes of this chapter, if

(2)

Amendments to the Social Security Act

Section 209 of the Social Security Act (42 U.S.C. 409) is amended—(A)in subsection (a)(1)—(i)in subparagraph (I)—(I)by inserting and before 2022 after 1974; and(II)by inserting and after the semicolon;(ii)by adding at the end the following new subparagraph:

(J)The applicable percentage (determined under subsection (l)) of that part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to the contribution and benefit base (determined under section 230) with respect to employment has been paid to an individual during any calendar year after 2021 with respect to which such contribution and benefit base is effective, is paid to such individual during such calendar year;

; and

(B)by adding at the end the following new subsection:

(l)For purposes of subsection (a)(1)(J), the applicable percentage for a calendar year shall be equal to—(1)for 2022, 80 percent;(2)for 2023 through 2025, the applicable percentage under this subsection for the previous year, decreased by 20 percentage points; and(3)for 2026 and each year thereafter, 0 percent.

(3)

Effective date

The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2021.(b)

Determination of taxable self-Employment income above contribution and benefit base after 2021

(1)

Amendments to the Internal Revenue Code of 1986

Section 1402 of the Internal Revenue Code of 1986 is amended—(A)in subsection (b)(1), by striking that part of the net earnings and all that follows through minus and inserting the following: an amount equal to the applicable percentage (as determined under subsection (d)(2)) of that part of the net earnings from self-employment which is in excess of the difference (not to be less than zero) between (i) an 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, and; and(B)in subsection (d)—(i)by striking (d) Employee and wages.—The term and inserting the following:

(d)

Rules and definitions

(1)

Employee and wages

The term

; and

(ii)by adding at the end the following:

(2)

Applicable percentage of net earnings from self-employment in determining taxable self-employment income

For purposes of subsection (b)(1), the applicable percentage for a taxable year beginning in any calendar year referred to in such subsection shall be equal to—(A)for 2022, 80 percent;(B)for 2023 through 2025, the applicable percentage under this paragraph for the previous year, decreased by 20 percentage points; and(C)for 2026 and each year thereafter, 0 percent.

(2)

Amendments to the Social Security Act

Section 211 of the Social Security Act (42 U.S.C. 411) is amended—(A)in subsection (b)—(i)in paragraph (1)(I)—(I)by striking or after the semicolon; and(II)by inserting and before 2022 after 1974;(ii)by redesignating paragraph (2) as paragraph (3); and(iii)by inserting after paragraph (1) the following:

(2)For any taxable year beginning in any calendar year after 2021, an amount equal to the applicable percentage (as determined under subsection (l)) of that part of net earnings from self-employment which is in excess of the difference (not to be less than zero) between—(A)an amount equal to the contribution and benefit base (as determined under section 230) that is effective for such calendar year, and(B)the amount of the wages paid to such individual during such taxable year; or

; and

(B)by adding at the end the following:

(l)For purposes of subsection (b)(2), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be equal to—(1)for 2022, 80 percent;(2)for 2023 through 2025, the applicable percentage under this subsection for the previous year, decreased by 20 percentage points; and(3)for 2026 and each year thereafter, 0 percent.

(3)

Effective date

The amendments made by this subsection shall apply with respect to taxable years beginning after calendar year 2021.

Adjustments to primary insurance amount formula and inclusion of surplus earnings for benefit determinations

(a)

Increase in percentage factor for lowest portion of earnings used to determine primary insurance amounts

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 95 percent.(b)

Inclusion of surplus average indexed monthly earnings in determination of primary insurance amounts

(1)

In general

Section 215(a)(1)(A) of the Social Security Act (42 U.S.C. 415(a)(1)(A)) is amended—(A)in clauses (i), (ii), and (iii), by inserting basic before average indexed monthly earnings each place it appears;(B)in clause (ii), by striking and at the end;(C)in clause (iii), by adding and at the end; and(D)by inserting after clause (iii) the following new clause:

(iv)5 percent of the individual’s surplus average indexed monthly earnings,

(2)

Bend point adjustments

Section 215(a)(1)(B) of such Act (42 U.S.C. 415(a)(1)(B)) is amended—(A)in clause (i), by inserting For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in the calendar year 2022, the amount established for purposes of clause (ii) of subparagraph (A) shall be $6,300. after the period; (B)in clause (ii)—(i)by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively; (ii)by striking For individuals and inserting (I) Subject to subclause (II), for individuals; and(iii)by adding at the end the following new subclause:

(II)For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in any calendar year after 2022, the amount established for purposes of clause (ii) of subparagraph (A) shall equal the product of the amount established with respect to calendar year 2022 under clause (i) of this subparagraph and the quotient obtained by dividing—(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, by(bb)the national average wage index (as so defined) for 2020.

;

(C)by redesignating clause (iii) as clause (iv); and(D)by inserting after clause (ii) the following new clause:

(iii)For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits) in any calendar year after 2026, the amount determined under clause (ii) of this subparagraph for purposes of subparagraph (A)(i) for such calendar year shall be increased by—(I)for calendar year 2027, 1 percent;(II)for each of calendar years 2028 through 2040, the percent determined under this clause for the preceding year increased by 1 percentage point; and(III)for calendar year 2041 and each year thereafter, 15 percent.

(3)

Recomputation of benefits for existing beneficiaries

Section 215(f) of the Social Security Act (42 U.S.C. 415(f)) is amended by adding at the end the following new paragraph:

(10)

Recomputation of primary insurance amount for individuals who became eligible for benefits before 2022

(A)The Commissioner of Social Security shall recompute the primary insurance amounts applicable to beneficiaries whose benefits are based on a primary insurance amount that was computed under this section effective prior to January 2022. Such recomputation shall be effective January 2022.(B)In recomputing the primary insurance amount applicable to a beneficiary under this paragraph, the Commissioner of Social Security shall calculate the primary insurance amount of the individual under subsection (a)(1) as in effect on the date that such primary insurance amount was initially computed, except that the Commissioner shall substitute for the amount that applied under subparagraph (B)(ii) of such subsection on such date an amount equal to the product of—(i)the amount that applied under such subparagraph on such date; and(ii)the ratio of— (I)6,300; to(II)6,002.(C)Each amount determined under subparagraph (B) shall be rounded to the nearest $1, except that any amount so established which is a multiple of $0.50 but not of $1 shall be rounded to the next higher $1.(D)If a primary insurance amount applicable to a beneficiary, as recomputed under this paragraph, is lower than the primary insurance amount applicable to such beneficiary as it was originally computed, such higher primary insurance amount shall continue to apply to such beneficiary.

(c)

Basic AIME and surplus AIME

(1)

Basic AIME

Section 215(b)(1) of such Act (42 U.S.C. 415(b)(1)) is amended—(A)by inserting basic before average; and(B)in subparagraph (A), by striking paragraph (3) and inserting paragraph (3)(A) and by inserting before the comma the following: to the extent such total does not exceed the contribution and benefit base for the applicable year.(2)

Surplus AIME

(A)

In general

Section 215(b)(1) of such Act (as amended by paragraph (1)) is amended—(i)by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;(ii)by striking An individual's and inserting (A) An individual's; and(iii)by adding at the end the following new subparagraph:

(B)(i)An individual’s surplus average indexed monthly earnings shall be equal to the quotient obtained by dividing—(I)the total (after adjustment under paragraph (3)(B)) of such individual’s surplus earnings (determined under clause (ii)) for such individual’s benefit computation years (determined under paragraph (2)), by(II)the number of months in those years.(ii)For purposes of clause (i) and paragraph (3)(B), an individual’s surplus earnings for a benefit computation year are the total of such individual’s wages paid in and self-employment income credited to such benefit computation year, to the extent such total (before adjustment under paragraph (3)(B)) exceeds the contribution and benefit base for such year.

(B)

Conforming amendment

The heading for section 215(b) of such Act is amended by striking

Average Indexed Monthly Earnings

and inserting

Basic Average Indexed Monthly Earnings; Surplus Average Indexed Monthly Earnings

.(3)

Adjustment of surplus earnings for purposes of determining surplus AIME

Section 215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is amended—(A)in subparagraph (A)— (i)by striking subparagraph (B) and inserting subparagraph (C) and; (ii)by inserting and determination of basic average indexed monthly income under paragraph (1)(A) after paragraph (2);(B)by redesignating subparagraph (B) as subparagraph (C); and(C)by inserting after subparagraph (A) the following new subparagraph:

(B)For purposes of determining under paragraph (1)(B) an individual’s surplus average indexed monthly earnings, the individual’s surplus earnings for a benefit computation year shall be deemed to be equal to the product of—(i)the individual’s surplus earnings for such year (as determined without regard to this subparagraph), and(ii)the quotient described in subparagraph (A)(ii).

(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 2026.

Increase in benefit amounts for long-term eligible individuals

(a)

In general

Section 202 of the Social Security Act (42 U.S.C. 402) is amended by adding at the end the following new subsection:

(aa)

Increase in benefit amounts for long-term eligible individuals

(1)

In general

The amount of a monthly benefit which is payable to an individual for a month under subsections (a) through (h) or section 223(a) (as determined without regard to this subsection) shall be increased by 5 percent if the individual is a long-term eligible individual during any part of such month.(2)

Long-term eligible individual defined

(A)

In general

The term long-term eligible individual means an individual who—(i)is entitled to a monthly benefit under subsections (a) through (h) or section 223(a); and(ii)has attained 82 years of age or 240 benefit months (as defined in subparagraph (B)), whichever is earlier.(B)

Benefit month

(i)

In general

For purposes of subparagraph (A), the term benefit month means a month for which an individual—(I)has attained age 19; and(II)is entitled to a monthly benefit under subsections (a) through (h) of section 202 or section 223(a).(ii)

Exclusions

Such term excludes any month in which an individual is—(I)entitled to a benefit under this section or section 223(a) that is not payable or reduced to zero by application of subsection (k), (n), (t), (u), (v), or (x) of this section; or(II)subject to a penalty under section 1129A.(3)

Disregard of increase for purposes of family maximum

The amount of any increase under this subsection to a monthly benefit amount of a long-term eligible individual shall be disregarded for purposes of applying section 203(a).

(b)

Conforming amendments

(1)Section 202 of the Social Security Act (42 U.S.C. 402) is amended—(A)in subsection (a), by striking subsection (q) and subsection (w) and inserting subsections (q), (w), and (aa);(B)in subsections (b)(2) and (c)(2), by striking subsections (k)(5) and (q) and inserting subsections (k)(5), (q), and (aa);(C)in subsection (d)(2), by striking Such child's each place it appears and inserting Subject to subsection (aa), such child's;(D)in subsections (e)(2)(A) and (f)(2)(A), by inserting subsection (aa), after subsection (q),;(E)in subsection (g)(2), by striking Such mother's or father's and inserting Subject to subsection (aa), such mother's or father's; and(F)in subsection (h)(2)(A), by inserting subsection (aa) and before subparagraphs (B) and (C).(2)Section 223(a)(2) of the Social Security Act (42 U.S.C. 423(a)(2)) is amended—(A)in the matter preceding subparagraph (A), by striking section 202(q) and inserting subsections (q) and (aa) of section 202; and(B)in subparagraph (B), by striking clause (ii) and inserting subdivision (ii) or (iii) of the matter following subparagraph (E).(c)

Effective date

The amendments made by this section shall apply to benefits payable for months in any calendar year after 2026.

Computation of cost-of-living increases for Social Security benefits; consumer price index for elderly consumers

(a)

Computation of cost-of-Living increases

(1)

In general

Section 215(i) of the Social Security Act (42 U.S.C. 415(i)) is amended—(A)in paragraph (1)(G), by inserting before the period the following: , and, with respect to any monthly insurance benefit payable under this title, effective for adjustments under this subsection to the primary insurance amount on which such benefit is based (or to any such benefit under section 227 or 228), the applicable Consumer Price Index shall be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be adjusted under this subsection using such Index; and(B)in paragraph (4)— (i)by striking and by section 9001 and inserting , by section 9001; and (ii)by striking 1986, and inserting 1986, and by section 5(a) of the Safeguarding American Families and Expanding Social Security Act of 2021,.(2)

Conforming amendments in applicable former law

Section 215(i)(1)(C) of the Social Security Act, as in effect in December 1978 and applied in certain cases under the provisions of such Act in effect after December 1978, is amended by inserting before the period the following: , and, with respect to any monthly insurance benefit payable under this title, effective for adjustments under this subsection to the primary insurance amount on which such benefit is based (or to any such benefit under section 227 or 228), the applicable Consumer Price Index shall be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be adjusted under this subsection using such Index.(3)

Effective date

The amendments made by this subsection shall apply to determinations made by the Commissioner of Social Security under section 215(i)(2) of the Social Security Act (42 U.S.C. 415(i)(2)) with respect to cost-of-living computation quarters ending on or after September 30, 2022.(b)

Consumer price index for elderly consumers

(1)

In general

The Bureau of Labor Statistics of the Department of Labor shall prepare and publish an index for each calendar month to be known as the Consumer Price Index for Elderly Consumers that indicates changes over time in expenditures for consumption which are typical for individuals in the United States who have attained early retirement age (as defined under section 216(l)(2) of the Social Security Act (42 U.S.C. 416(l)(2)) for purposes of an old-age, wife's, or husband's insurance benefit).(2)

Effective date

Paragraph (1) shall apply with respect to calendar months ending on or after June 30 of the calendar year in which this Act is enacted.(3)

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out the provisions of this subsection.

Deemed wages for caregivers of dependent relatives

(a)

In general

Title II of the Social Security Act is amended by adding after section 234 (42 U.S.C. 434) the following new section:

235.

Deemed wages for caregivers of dependent relatives

(a)

Definitions

For purposes of this section—(1)(A)Subject to subparagraph (B), the term qualifying month means, in connection with an individual, any month—(i)beginning after the date of enactment of the Safeguarding American Families and Expanding Social Security Act of 2021; and(ii)during which such individual was engaged for not less than 80 hours in providing care to a dependent relative without monetary compensation.(B)The term qualifying month does not include any month ending after the date on which such individual attains retirement age (as defined in section 216(l)).(C)For purposes of subparagraph (A)(ii), assistance provided to a family caregiver of an eligible veteran under section 1720G of title 38, United States Code, shall not be considered monetary compensation for providing care to such eligible veteran.(2)The term dependent relative means, in connection with an individual—(A)a child, grandchild, sibling, niece, or nephew (of such individual or such individual’s spouse or domestic partner), or a child to which the individual or the individual’s spouse or domestic partner is standing in loco parentis, who is under the age of 16; or(B)a child, grandchild, niece, or nephew (of such individual or such individual’s spouse or domestic partner), a child to which the individual or the individual’s spouse or domestic partner is standing in loco parentis, a parent, grandparent, sibling, aunt, or uncle (of such individual or his or her spouse or domestic partner), or such individual’s spouse or domestic partner, if such child, grandchild, niece, nephew, parent, grandparent, sibling, aunt, uncle, spouse, or domestic partner is a chronically dependent individual.(3)(A)The term chronically dependent individual means an individual who—(i)is dependent on a daily basis on verbal reminding, physical cueing, supervision, or other assistance provided to the individual by another person in the performance of at least two of the activities of daily living (described in subparagraph (B)) or instrumental activities of daily living (described in subparagraph (C)); and(ii)without the assistance described in clause (i), could not perform such activities of daily living or instrumental activities of daily living.(B)The activities of daily living referred to in subparagraph (A) means basic personal everyday activities, including—(i)eating;(ii)bathing;(iii)dressing;(iv)toileting; and(v)transferring in and out of a bed or in and out of a chair.(C)The instrumental activities of daily living referred to in subparagraph (A) means activities related to living independently in the community, including—(i)meal planning and preparation;(ii)managing finances;(iii)shopping for food, clothing, or other essential items;(iv)performing essential household chores;(v)communicating by phone or other form of media; and(vi)traveling around and participating in the community.(b)

Deemed Wages of Caregiver

(1)(A)For purposes of determining entitlement to and the amount of any monthly benefit for any month after December 2019, or entitlement to and the amount of any lump-sum death payment in the case of a death after such month, payable under this title on the basis of the wages and self-employment income of any individual, and for purposes of section 216(i)(3), such individual shall be deemed to have been paid during each qualifying month (in addition to wages or self-employment income actually paid to or derived by such individual during such month) at an amount per month equal to—(i)in the case of a qualifying month during which no wages or self-employment income were actually paid to or derived by such individual—(I)50 percent of the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year in which such month occurs; or(II)if the dependent relative to which the individual provided care during such month was, at any time during such month, a child under the age of 6 or a chronically dependent individual, 100 percent of the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year in which such month occurs;(ii)in the case of a qualifying month in which an individual engages in employment or any trade or business carried on by the individual or by a partnership of which the individual is a member for not more than 80 hours, 50 percent of the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year in which such month occurs; and(iii)in the case of any other qualifying month, the excess of the amount determined under clause (i) over 1/2 of the wages or self-employment income actually paid to or derived by such individual during such month.(B)In any case in which there are more than 120 qualifying months for an individual, only the last 60 of such months shall be taken into account for purposes of this section.(2)Paragraph (1) shall not be applicable in the case of any monthly benefit or lump-sum death payment if a larger such benefit or payment, as the case may be, would be payable without its application.(c)

Rules and regulations

(1)Not later than one year after the date of the enactment of this section, the Commissioner of Social Security shall promulgate such regulations as are necessary to carry out this section and to prevent fraud and abuse with respect to the benefits under this section, including regulations establishing procedures for the application and certification requirements described in paragraph (2).(2)A qualifying month shall not be taken into account under this section with respect to an individual unless—(A)the individual submits to the Commissioner of Social Security an application for benefits under this section that includes—(i)the name and identifying information of the dependent relative with respect to whom the individual was engaged in providing care during such month;(ii)if the dependent relative is not a child under the age of 16, documentation from the physician of the dependent relative explaining why the dependent relative is a chronically dependent individual; and(iii)such other information as the Commissioner may require to verify the status of the dependent relative; and(B)for every qualifying month or period of up to 12 consecutive qualifying months that occurs after the first period of 12 consecutive qualifying months, the individual certifies, in such form and manner as the Commissioner shall require, that the information provided in the individual’s application for benefits under this section has not changed.

(b)

Conforming amendment

Section 209(k)(1) of such Act (42 U.S.C. 409(k)(1)) is amended—(1)by striking and before 230(b)(2) the first time it appears; and(2)by inserting and 235(b)(1)(A)(i), after 1977),.

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 2021, 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 yearsThe applicable of work is:percentage is:116.25 percent1212.50 percent1318.75 percent1425.00 percent1531.25 percent1637.50 percent1743.75 percent1850.00 percent1956.25 percent2062.50 percent2168.75 percent2275.00 percent2381.25 percent2487.50 percent2593.75 percent26100.00 percent27106.25 percent28112.50 percent29118.75 percent30 or more125.00 percent.

(iii)The annual dollar amount determined under this clause is—(I)for calendar year 2022, the poverty guideline for 2021; and(II)for any calendar year after 2022, the annual dollar amount for 2022 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 2020.(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 2021 means the annual poverty guideline for 2019 (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 2021 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),.

Elimination of disability waiting period for disability insurance benefits and surviving spouse benefits

(a)

Elimination of waiting period for disability insurance benefits

Section 223 of the Social Security Act (42 U.S.C. 423), as amended by section 4(b)(2), is amended— (1)in subsection (a)—(A)in paragraph (1), in the matter following subparagraph (E)—(i)by striking disability insurance benefit (i) for each month and all that follows through , or (iii) and inserting disability insurance benefit; and(ii)by striking , but only if and all that follows through under such disability; and(B)in paragraph (2), by striking as though he had attained age 62 in— and all that follows through such disability insurance benefits, and inserting as though the individual had attained age 62 in the first month for which the individual becomes entitled to such disability insurance benefits,; and(2)in subsection (c)— (A)in the subsection header, by striking

Definitions of Insured Status and Waiting Period

and inserting

Definition of Insured Status

; and(B)by striking paragraph (2). (b)

Elimination of waiting period for surviving spouse and surviving divorced spouse benefits

Section 202 of the Social Security Act (42 U.S.C. 402) is amended—(1)in subsection (e)—(A)in paragraph (1), in the matter following subparagraph (D), by striking beginning with— and all that follows through on such basis terminated, and inserting beginning with the first month in which she becomes so entitled to such insurance benefits;(B)by striking paragraph (5); and(C)by redesignating paragraphs (6) through (8) as paragraphs (5) through (7); and(2)in subsection (f)—(A)in paragraph (1), in the matter following subparagraph (D), by striking beginning with— and all that follows through on such basis terminated, and inserting beginning with the first month in which he becomes so entitled to such insurance benefits;(B)by striking paragraph (5); and(C)by redesignating paragraphs (6) through (8) as paragraphs (5) through (7).(c)

Effective date

The amendments made by this section shall apply with respect to applications for benefits filed on or after the date of the enactment of this Act.

Tax on investment gain

(a)

In general

Subsection (a) of section 1411 of the Internal Revenue Code of 1986 is amended by striking 3.8 percent each place it appears and inserting 6.8 percent.(b)

Conforming amendment

The heading for chapter 2A of the Internal Revenue Code of 1986 is amended by inserting

and Social Security

after

Medicare

.(c)

Trust funds

(1)

Technical amendments

Section 201 of the Social Security Act (42 U.S.C. 401) is amended—(A)in subsection (a)—(i)by striking clause each place it appears and inserting paragraph; and(ii)in the flush text at the end, by striking clauses each place it appears and inserting paragraphs; and(B)in subsection (g)(2), by striking clause each place it appears and inserting paragraph.(2)

Federal Old-age and Survivors Insurance Trust Fund

Subsection (a) of section 201 of the Social Security Act (42 U.S.C. 401), as amended by paragraph (1), is amended—(A)in paragraph (4), by striking the period at the end and inserting ; and;(B)by inserting after paragraph (4) the following new paragraph:

(5)44.1 percent of the taxes imposed under section 1411 of the Internal Revenue Code of 1986.

; and

(C)in the flush matter at the end, by striking paragraphs (3) and (4) each place it appears and inserting paragraphs (3), (4), and (5).(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2021.

10.

Holding SSI, Medicaid, and CHIP beneficiaries harmless

For purposes of determining the income of an individual to establish eligibility for, and the amount of, benefits payable under title XVI of the Social Security Act, eligibility for medical assistance under the State plan under title XIX (or a waiver of such plan), or eligibility for child health assistance under the State child health plan under title XXI (or a waiver of the plan), the amount of any benefit to which the individual is entitled under title II of such Act shall be deemed not to exceed the amount of the benefit that would be determined for such individual under such title as in effect on the day before the date of the enactment of this Act.