[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3517 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3517
To amend title II of the Social Security Act to make various reforms to
Social Security, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 20, 2025
Ms. Moore of Wisconsin introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend title II of the Social Security Act to make various reforms to
Social Security, and for other purposes.
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 Enhancement and
Protection Act of 2025''.
SEC. 2. INCREASE IN SPECIAL MINIMUM BENEFIT FOR LIFETIME LOW EARNERS
BASED ON YEARS IN THE WORKFORCE.
Section 215(a)(1)(C) of the Social Security Act (42 U.S.C.
415(a)(1)(C)) is amended to read as follows:
``(C)(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 2025, no primary
insurance amount computed under subparagraph (A) may be less than the
applicable percentage of \1/12\ of the annual dollar amount determined
under clause (iv) for the year in which the amount is determined.
``(ii) For purposes of clause (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 The applicable
years of work is: percentage is:
11........................................... 36.7 percent
12........................................... 40.0 percent
13........................................... 43.3 percent
14........................................... 46.7 percent
15........................................... 50.0 percent
16........................................... 53.3 percent
17........................................... 56.7 percent
18........................................... 60.0 percent
19........................................... 63.3 percent
20........................................... 66.7 percent
21........................................... 70.0 percent
22........................................... 73.3 percent
23........................................... 76.7 percent
24........................................... 80.0 percent
25........................................... 83.3 percent
26........................................... 86.7 percent
27........................................... 90.0 percent
28........................................... 93.3 percent
29........................................... 96.7 percent
30 or more................................... 100.0 percent.
``(iii) The annual dollar amount determined under this clause is--
``(I) for calendar year 2026, the poverty guideline for
2025; and
``(II) for any calendar year after 2026, the annual dollar
amount for 2026 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 2024.
``(iv) For purposes of this subparagraph--
``(I) the term `number of years of work' means, with
respect to an individual, the sum of--
``(aa) \1/4\ of the total number of quarters of
coverage credited to such individual (disregarding any
fraction); and
``(bb) the number of years (not exceeding 5) in all
of which the individual provided care for a child under
6 years of age who resided in the individual's home;
and
``(II) the term `poverty guideline for 2025' means the
annual poverty guideline for 2025 (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''.
SEC. 3. ESTABLISHMENT OF AN INCREASED BENEFIT FOR BENEFICIARIES ON
ACCOUNT OF LONG-TERM ELIGIBILITY.
(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 on Account of Long-Term
Eligibility.--(1) In the case of an individual who is a qualified
beneficiary for a calendar year after 2025, the amount of any monthly
insurance benefit of such qualified beneficiary under this section or
section 223 for any month in such calendar year shall be increased in
accordance with paragraph (3).
``(2)(A) For purposes of this subsection, the term `qualified
beneficiary' for a calendar year means an individual in any case in
which such calendar year begins at least 16 years after the applicable
date of eligibility for such individual.
``(B) For purposes of this subsection, the applicable date of
eligibility for an individual is the date on which the individual on
whose wages and self-employment income the monthly insurance benefit is
based initially became eligible (or died before becoming eligible) for
old-age insurance benefits under subsection (a) or disability insurance
benefits under section 223.
``(3)(A) The increase required under paragraph (1) with respect to
the monthly insurance benefit of an individual who is a qualified
beneficiary for a calendar year shall be equal to the applicable
percentage (specified for such benefit in subparagraph (B)) of the full
increase amount for such calendar year (determined under subparagraph
(C)).
``(B) The applicable percentage specified for a monthly insurance
benefit under this subparagraph for a calendar year is the percentage
specified, in connection with the number of years ending after the
applicable date of eligibility for such individual and before such
calendar year, in the following table:
The applicable
``If the number of years is: percentage is:
16........................................... 20 percent
17........................................... 40 percent
18........................................... 60 percent
19........................................... 80 percent
20 or larger................................. 100 percent.
``(C)(i) Except as provided in clause (ii), the full increase
amount determined under this subparagraph for a calendar year in
connection with the monthly insurance benefit of a qualified
beneficiary is a dollar amount equal to 5 percent of the amount of the
benefit if--
``(I) such benefit were based on the primary insurance
amount determined for January of such calendar year of a
putative individual;
``(II) on January 1 of the calendar year in which occurred
the applicable eligibility date with respect to such
individual, such putative individual were fully insured,
attained retirement age (as defined in section 216(l)(2)) and
were otherwise eligible for, and applied for, old-age insurance
benefits; and
``(III) such putative individual's average indexed monthly
earnings taken into account in determining such primary
insurance amount were equal to \1/12\ of the national average
wage index (as defined in section 209(k)(1)) for the second
year prior to such calendar year.
``(ii)(I) In the case of a monthly insurance benefit under
subsection (b) or (c), the full increase amount determined under this
subparagraph shall be one-half the amount determined under clause (i);
or
``(II) in the case of a monthly insurance benefit under subsection
(d), (g), or (h), the full increase amount determined under this
subparagraph shall be the percentage of the amount determined under
clause (i) equal to the ratio which the amount of such benefit bears to
the primary insurance amount (before the application of section 203(a))
of the individual on whose wages and self-employment income the monthly
insurance benefit is based.
``(4) In the case of a qualified beneficiary who is entitled to two
or more monthly insurance benefits under this title for the same
month--
``(A) the earliest applicable date of eligibility for such
beneficiary with respect to such benefits shall be treated as
the applicable date of eligibility for such beneficiary for the
purposes of this subsection; and
``(B) such beneficiary shall be entitled to an increase
with respect only to one such benefit.
``(5) This subsection shall be applied to monthly insurance
benefits after any increase under subsection (w) and any applicable
reductions and deductions under this title.
``(6) In any case in which an individual is entitled to benefits
under both this section and section 223, the increase under this
subsection shall be paid from the Federal Old-Age and Survivors
Insurance Trust Fund.''.
(b) Conforming Amendments.--
(1) Section 202 of such Act (42 U.S.C. 402) is amended--
(A) in the last sentence of subsection (a), by
striking ``subsection (q) and subsection (w)'' and
inserting ``subsections (q), (w), and (aa)'';
(B) in subsection (b)(2), by striking ``subsection
(q)'' and inserting ``subsections (q) and (aa)'';
(C) in subsection (c)(2), by striking ``subsection
(q)'' and inserting ``subsections (q) and (aa)'';
(D) in subsection (d)(2), by adding at the end the
following: ``This paragraph shall apply subject to
subsection (aa).'';
(E) in subsection (e)(2)(A), by striking
``subsection (q) and subparagraph (D) of this
paragraph'' and inserting ``subsection (q), subsection
(aa), and subparagraph (D) of this paragraph'';
(F) in subsection (f)(2)(A), by striking
``subsection (q) and subparagraph (D) of this
paragraph'' and inserting ``subsection (q), subsection
(aa), and subparagraph (D) of this paragraph'';
(G) in subsection (g)(2), by striking ``Such'' and
inserting ``Except as provided in subsection (aa),
such'';
(H) in subsection (h)(2)(A), by inserting ``and
subsection (aa)'' after ``subparagraphs (B) and (C)'';
and
(I) in section 223(a)(2), by striking ``section
202(q)'' and inserting ``subsections (q) and (aa) of
section 202''.
(2) Section 209(k)(1) of such Act (402 U.S.C. 409(k)(1)) is
amended by inserting ``202(aa)(3)(C)(i)(II),'' before
``203(f)(8)(B)(ii)''.
SEC. 4. EXTENSION OF CHILD'S BENEFIT FOR FULL-TIME POST-SECONDARY
SCHOOL STUDENTS UNDER AGE 26.
(a) In General.--Section 202(d)(1)(B) of the Social Security Act
(42 U.S.C. 402(d)(1)(B)) is amended to read as follows:
``(B) at the time such application was filed was unmarried
and--
``(i) had not attained the age of 18,
``(ii) was a full-time elementary or secondary
school student and had not attained the age of 19,
``(iii) was a full-time post-secondary school
student and had not attained the age of 26, or
``(iv) is under a disability (as defined in section
223(d)) which began before he attained the age of 22,
and''.
(b) Definition of Full-Time Post-Secondary School Student.--
(1) In general.--Section 202(d)(7) of such Act (42 U.S.C.
402(d)(7)) is amended--
(A) in subparagraph (A)--
(i) by inserting ``and a `full-time post-
secondary school student' is an individual who
is in full-time attendance as a student at a
post-secondary educational institution'' before
``, as determined by the Commissioner'';
(ii) by inserting ``or a `full-time post-
secondary school student''' before ``if he is
paid by his employer'';
(iii) by inserting ``or a post-secondary
educational institution, as applicable,''
before ``at the request'';
(iv) by inserting ``or a `full-time post-
secondary school student''' before ``for the
purpose of this section''; and
(v) by inserting ``or a full-time post-
secondary school student'' before ``shall be
deemed''; and
(B) in subparagraph (B)--
(i) by inserting ``or a full-time post-
secondary school student'' after ``student'';
(ii) by inserting ``or a post-secondary
educational institution, as applicable'' before
``at which he has been''; and
(iii) by striking ``an elementary or
secondary school'' in each of the second and
third places in which such term appears and
inserting ``such a school''.
(2) Transition from elementary or secondary school.--
Section 202(d)(7)(B) of such Act (42 U.S.C. 402(d)(7)(B)) is
amended by adding at the end the following sentence: ``An
individual who has been in full-time attendance at an
elementary or secondary school shall, during a succeeding
period of nonattendance at such school, be deemed to be a full-
time secondary-school student if (i) such period is 4 calendar
months or less, and (ii) the individual shows to the
satisfaction of the Commissioner that he intends to be in full-
time attendance at a post-secondary educational institution
immediately following such period.''
(c) Definition of Post-Secondary Educational Institution.--Section
202(d)(7)(C) of such Act (42 U.S.C. 402(d)(7)(C)) is amended by adding
at the end the following:
``(iii) A `post-secondary educational institution' is an
institution described in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002).''.
(d) Conforming Amendments.--
(1) Section 202(d)(1)(E) of such Act (42 U.S.C.
402(d)(1)(E)) is amended by inserting ``or a full-time post-
secondary school student'' after ``student''.
(2) Section 202(d)(1)(F) of such Act (42 U.S.C.
402(d)(1)(F)) is amended by striking ``the earlier of--'' and
all that follows through ``the age of 19,'' and inserting the
following: ``the earlier of--
``(i) the first month during no part of
which the child is a full-time elementary or
secondary school student or a full-time post-
secondary school student,
``(ii) the month in which the child attains
the age of 19, but only if the child is not a
full-time post-secondary school student during
any part of such month, or
``(iii) the month in which the child
attains the age of 26,''.
(3) Section 202(d)(1)(G) of such Act (42 U.S.C.
402(d)(1)(G)) is amended by striking ``(if later)'' and all
that follows through the ``the age of 19,'' and inserting the
following: ``(if later) the earlier of--
``(i) the first month during no part of
which the child is a full-time elementary or
secondary school student or a full-time post-
secondary school student,
``(ii) the month in which the child attains
the age of 19, but only if the child is not a
full-time post-secondary school student during
any part of such month, or
``(iii) the month in which the child
attains the age of 26,''.
(4) Section 202(d)(6)(A) of such Act (42 U.S.C.
402(d)(6)(A)) is amended to read as follows:
``(A)(i) is a full-time elementary or secondary
school student and has not attained the age of 19,
``(ii) is a full-time post-secondary school student
and has not attained the age of 26, or
``(iii) is under a disability (as defined in
section 223(d)) and has not attained the age of 22,
or''.
(5) Section 202(d)(6)(D) of such Act (42 U.S.C.
402(d)(6)(D)) is amended to read as follows:
``(D) the earlier of--
``(i) the first month during no part of
which the child is a full-time elementary or
secondary school student or a full-time post-
secondary school student,
``(ii) the month in which the child attains
the age of 19, but only if the child is not a
full-time post-secondary school student during
any part of such month, or
``(iii) the month in which the child
attains the age of 26,
but only if he is not under a disability (as so
defined) in such earlier month; or''.
(6) Section 202(d)(6)(E) of such Act (42 U.S.C.
402(d)(6)(E)) is amended by striking ``(if later)'' and all
that follows to the end and inserting the following: ``(if
later) the earlier of--
``(i) the first month during no part of
which the child is a full-time elementary or
secondary school student or a full-time post-
secondary school student,
``(ii) the month in which the child attains
the age of 19, but only if the child is not a
full-time post-secondary school student during
any part of such month, or
``(iii) the month in which the child
attains the age of 26.''.
(e) Effective Date.--The amendments made by this section apply with
respect to applications for child's insurance benefits under section
202(d) of the Social Security Act (42 U.S.C. 402(d)) filed in any
calendar year after 2025.
SEC. 5. DETERMINATION OF TAXABLE WAGES AND SELF-EMPLOYMENT INCOME ABOVE
CONTRIBUTION AND BENEFIT BASE AFTER 2025.
(a) Determination of Taxable Wages Above Contribution and Benefit
Base After 2025.--
(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 determined
in accordance with the following table:
The applicable
``In the case of: percentage is:
Calendar year 2026........................... 90 percent
Calendar year 2027........................... 80 percent
Calendar year 2028........................... 70 percent
Calendar year 2029........................... 60 percent
Calendar year 2030........................... 50 percent
Calendar year 2031........................... 40 percent
Calendar year 2032........................... 30 percent
Calendar year 2033........................... 20 percent
Calendar year 2034........................... 10 percent
Calendar years after 2035.................... 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)--
(i) by inserting ``and before 2026'' after
``1974''; and
(ii) by inserting ``and'' after the
semicolon;
(B) in subsection (a)(1), 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 2025 with respect to which such
contribution and benefit base is effective, is paid to such
individual during such calendar year;''; and
(C) 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 determined in accordance with
the following table:
The applicable
``In the case of: percentage is:
Calendar year 2025........................... 90 percent
Calendar year 2027........................... 80 percent
Calendar year 2028........................... 70 percent
Calendar year 2029........................... 60 percent
Calendar year 2030........................... 50 percent
Calendar year 2031........................... 40 percent
Calendar year 2032........................... 30 percent
Calendar year 2033........................... 20 percent
Calendar year 2034........................... 10 percent
Calendar years after 2035.................... 0 percent.''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to remuneration paid in calendar years
after 2025.
(b) Determination of Taxable Self-Employment Income Above
Contribution and Benefit Base After 2025.--
(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
paragraph shall be determined in accordance with the following
table:
The applicable
``In the case of: percentage is:
Calendar year 2026........................... 90 percent
Calendar year 2027........................... 80 percent
Calendar year 2028........................... 70 percent
Calendar year 2029........................... 60 percent
Calendar year 2030........................... 50 percent
Calendar year 2031........................... 40 percent
Calendar year 2032........................... 30 percent
Calendar year 2033........................... 20 percent
Calendar year 2034........................... 10 percent
Calendar years after 2035.................... 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
2026'' 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 2025, 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 determined in accordance with the following table:
The applicable
``In the case of: percentage is:
Calendar year 2026........................... 90 percent
Calendar year 2027........................... 80 percent
Calendar year 2028........................... 70 percent
Calendar year 2029........................... 60 percent
Calendar year 2030........................... 50 percent
Calendar year 2031........................... 40 percent
Calendar year 2032........................... 30 percent
Calendar year 2033........................... 20 percent
Calendar year 2034........................... 10 percent
Calendar years after 2035.................... 0 percent.''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to taxable years beginning in calendar
years after 2025.
(c) Computing Average Indexed Monthly Earnings.--Section 215(e) of
the Social Security Act (42 U.S.C. 415(e)) is amended--
(1) in paragraph (1)--
(A) by striking ``and'' after ``before 1975,'';
(B) by inserting ``and before 2026'' after ``after
1974''; and
(C) by inserting ``, and the applicable percentage
of the excess over an amount equal to the contribution
and benefit base (as determined under section 230) in
the case of any calendar year after 2025 with respect
to which such contribution and benefit base is
effective,'' after ``benefit base is effective,''; and
(2) by adding at the end the following:
``(3) For purposes of paragraph (1), the applicable
percentage for a year shall be determined in accordance with
the following table:
The applicable
``In the case of: percentage is:
Calendar year 2026........................... 90 percent
Calendar year 2027........................... 80 percent
Calendar year 2028........................... 70 percent
Calendar year 2029........................... 60 percent
Calendar year 2030........................... 50 percent
Calendar year 2031........................... 40 percent
Calendar year 2032........................... 30 percent
Calendar year 2033........................... 20 percent
Calendar year 2034........................... 10 percent
Calendar years after 2035.................... 0 percent.''.
(d) Conforming Amendment.--Section 215(i)(2)(C)(i) of the Social
Security Act (42 U.S.C. 415(i)(2)(C)(i)) is amended by striking ``the
Commissioner's estimate of the extent to which the cost of such
increase would be met by an increase in the contribution and benefit
base under section 230 and the estimated amount of the increase in such
base,''.
SEC. 6. NEW BEND POINT FOR AMOUNTS ABOVE CONTRIBUTION AND BENEFIT BASE.
(a) In General.--Section 215(a)(1) of the Social Security Act (42
U.S.C. 415(a)(1)) is amended--
(1) in subparagraph (A)--
(A) in clause (ii), by striking ``and'';
(B) in clause (iii), by striking the comma at the
end and inserting the following: ``but do not exceed
the amount established for purposes of this clause by
subparagraph (B), and''; and
(C) by inserting after clause (iii) the following:
``(iv) 3 percent of the individual's average indexed
monthly earnings to the extent that such earnings exceed the
amount established for purposes of clause (iii),''; and
(2) in subparagraph (B)--
(A) by inserting ``and before 2026'' after ``1979''
in clause (ii);
(B) by redesignating clause (iii) as clause (v);
(C) by inserting after clause (ii) the following:
``(iii) 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
2026--
``(I) the amounts established for purposes of
clauses (i) and (ii) of subparagraph (A) shall be the
amounts so established under clause (ii) of this
subparagraph for such calendar year; and
``(II) the amount established for purposes of
clause (iii) of subparagraph (A) shall be the amount of
the contribution and benefit base with respect to
remuneration paid (and taxable years beginning) in
calendar year 2026.
``(iv) 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 so established shall equal the
product of the corresponding amount established
with respect to the calendar year 2026 under
clause (iii) of this subparagraph and the
quotient obtained by dividing--
``(I) 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
``(II) the national average wage
index (as so defined) for 2024.''; and
(D) in clause (v), as so redesignated by
subparagraph (A) of this paragraph, by inserting ``and
clause (iv)'' after ``clause (ii)''.
(b) 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)) 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 2025.
SEC. 7. INCREASE IN EMPLOYMENT TAX RATE.
(a) Wages.--
(1) Employees.--Subsection (a) of section 3101 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Old-Age, Survivors, and Disability Insurance.--
``(1) In general.--In addition to other taxes, there is
hereby imposed on the income of every individual a tax equal to
the applicable percentage of the wages (as defined in section
3121(a)) received by him with respect to employment (as defined
in section 3121(b)).
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means the percentage
determined under the following table:
The applicable
``In case of wages received during: percentage
shall be:
2026......................................... 6.25 percent
2027......................................... 6.30 percent
2028......................................... 6.35 percent
2029......................................... 6.40 percent
2030......................................... 6.45 percent
2031 or thereafter........................... 6.50 percent.''.
(2) Employers.--Subsection (a) of section 3111 of such Code
is amended to read as follows:
``(a) Old-Age, Survivors, and Disability Insurance.--
``(1) In general.--In addition to other taxes, there is
hereby imposed on every employer an excise tax, with respect to
having individuals in his employ, equal to the applicable
percentage of the wages (as defined in section 3121(a)) paid by
him with respect to employment (as defined in section 3121(b)).
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means the percentage
determined under the following table:
The applicable
``In case of a taxable year percentage
beginning during calendar year: shall be:
2026......................................... 6.25 percent
2027......................................... 6.30 percent
2028......................................... 6.35 percent
2029......................................... 6.40 percent
2030......................................... 6.45 percent
2031 or thereafter........................... 6.50 percent.''.
(b) Self-Employment.--Subsection (a) of section 1401 of such Code
is amended to read as follows:
``(a) Old-Age, Survivors, and Disability Insurance.--
``(1) In addition to other taxes, there shall be imposed
for each taxable year, on the self-employment income of every
individual, a tax equal to the applicable percentage of the
amount of the self-employment income for such taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means the percentage
determined under the following table:
The applicable
``In case of a taxable year percentage
beginning during calendar year: shall be:
2026......................................... 12.5 percent
2027......................................... 12.6 percent
2028......................................... 12.7 percent
2029......................................... 12.8 percent
2030......................................... 12.9 percent
2031 or thereafter........................... 13.0 percent.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to remuneration received, and taxable years
beginning after, December 31, 2025.
SEC. 8. NON-APPLICATION OF INCREASE IN SOCIAL SECURITY BENEFITS FOR
MEANS-TESTED PROGRAMS.
Any increase in monthly insurance benefits under title II of the
Social Security Act as a result of the amendments made by this Act
shall not be regarded as income or resources for any month after
December 2025, for purposes of determining the eligibility of the
recipient (or the recipient's spouse or family) for benefits or
assistance, or the amount or extent of benefits or assistance, under
any Federal program or under any State or local program financed in
whole or in part with Federal funds.
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