S. 770 · 119th Congress · Senate
Social Security Expansion Act
Introduced 2025-02-27 · Sponsored by Bernie Sanders (I-VT) · Last updated 2026-03-31
Last action (2025-02-27): Referred to the Committee on Finance.
Summary
Would extend Social Security solvency by applying the payroll tax to income over $250,000 (currently capped at $176,100). Uses the new revenue to increase benefits by $200/month, switch to the CPI-E inflation index for seniors, and extend the trust fund by approximately 50 years.
The Good
Addresses the solvency crisis directly
The Social Security trust fund is projected to be depleted by 2035, which would trigger automatic 17% benefit cuts for all recipients. This bill extends solvency through approximately 2085 by creating a new revenue stream.
Increases benefits for current recipients
The $200/month increase would bring the average monthly benefit from approximately $1,900 to $2,100. For seniors living primarily on Social Security, this represents a meaningful improvement in quality of life.
Only affects incomes above $250,000
The payroll tax increase applies only to earnings over $250,000, meaning roughly 93% of workers see no change. The current payroll tax cap at $176,100 means high earners pay a lower effective rate than middle-income workers.
The Bad
Significant tax increase on high earners and employers
The 12.4% combined payroll tax on income above $250,000 represents a substantial new burden. Since employers pay half, this also increases labor costs for businesses with high-wage employees, potentially affecting hiring and compensation decisions.
Creates a gap in the payroll tax structure
Income between $176,100 and $250,000 would remain untaxed, creating an unusual donut hole in the tax base. This adds complexity and could face legal challenges about equitable treatment.
Low chance of passage in current Congress
The bill has no Republican cosponsors and has been referred to the Senate Finance Committee without a hearing scheduled. Similar proposals have been introduced in multiple prior Congresses without advancing.
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