H.R. 3517

[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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