This bill makes two significant changes to Social Security. First, it gradually eliminates the cap on Social Security payroll taxes, starting in 2026, so that all wages above the current threshold will be taxed by 2030—this increases revenue into the Social Security trust fund by taxing higher earners more fully. Second, beginning in 2026, it changes how Social Security cost-of-living adjustments are calculated by using a new index specifically designed to measure price changes experienced by elderly consumers rather than the general population, which could result in different annual benefit increases. Together, these changes are intended to strengthen Social Security's long-term financial health while potentially adjusting benefits to better reflect seniors' actual spending patterns.
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