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HR 72/S. 36 Protecting and Preserving Social Security Act
Topic Started: 16 Jun 2013, 12:14 AM (242 Views)
Heather Holson
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72 hours for debate

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Mr. BRENNINGER of New Mexico and Ms. POWER of Maine, with thanks to Mr. BEGICH of Alaska submits,

A BILL

To amend title II of the Social Security Act and the Internal Revenue Code of 1986 to make improvements in the old-age, survivors, and disability insurance program, to provide for cash relief for years for which annual COLAs do not take effect under certain cash benefit programs, and to provide for Social Security benefit protection.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) Short Title- This Act may cited as the ‘Protecting and Preserving Social Security Act’.

(b) Table of Contents- The table of contents of this Act is as follows:

Sec. 1. Short title and table of contents.

TITLE I--COST-OF-LIVING INCREASES

Sec. 101. Consumer price index for elderly consumers.

Sec. 102. Computation of cost-of-living increases.

TITLE II--CONTRIBUTION AND BENEFIT FAIRNESS

Sec. 201. Determination of wages and self-employment income above contribution and benefit base after 2013.

Sec. 202. Inclusion of surplus earnings in social security benefit formula.

TITLE I--COST-OF-LIVING INCREASES

SEC. 101. CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS.

(a) 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 are 62 years of age or older.

(b) Effective Date- Subsection (a) shall apply with respect to calendar months ending on or after July 31 of the calendar year following the calendar year in which this Act is enacted.

(c) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out the provisions of this section.

SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES.

(a) In General- Section 215(i) of the Social Security Act (42 U.S.C. 415(i)) is amended--

(1) in paragraph (1)(G), by inserting before the period the following: ‘, and, solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age 62, 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) occurring after such individual attains such age, the applicable Consumer Price Index shall be deemed to be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be deemed adjusted under this subsection using such Index’; and

(2) in paragraph (4), by striking ‘and by section 9001’ and inserting ‘, by section 9001’, and by inserting after ‘1986,’ the following: ‘and by section 102 of the Protecting and Preserving Social Security Act,’.

(b) Conforming Amendments in Applicable Former Law- Section 215(i)(1)(C) of such 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, solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age 62, 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) occurring after such individual attains such age, the applicable Consumer Price Index shall be deemed to be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be deemed adjusted under this subsection using such Index’.

(c) Effective Date- The amendments made by subsection (a) shall apply to determinations made with respect to cost-of-living computation quarters (as defined in section 215(i)(1)(B) of the Social Security Act (42 U.S.C. 415(i)(1)(B))) ending on or after September 30 of the second calendar year following the calendar year in which this Act is enacted.

TITLE II--CONTRIBUTION AND BENEFIT FAIRNESS

SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOYMENT INCOME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER 2013.

(a) Determination of Wages Above Contribution and Benefit Base After 2013-

(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 WAGES- For purposes of paragraph (1) of subsection (a), the applicable percentage for a calendar year, in connection with any calendar year referred to in such subparagraph, shall be the percentage determined in accordance with the following table for tax income filers with an annual income of $1,000,000 or more:

The applicable

‘In the case of:

percentage is:

Calendar year 2014

--86%

Calendar year 2015

--71%

Calendar year 2016

--57%

Calendar year 2017

--43%

Calendar year 2018

--29%

Calendar year 2019

--14%

Calendar years after 2019

--0%.

‘(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 2014’ 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 2013 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 subparagraph (J) of subsection (a)(1), the applicable percentage for a calendar year, in connection with any calendar year referred to in such subparagraph, shall be the percentage determined in accordance with the following table:

The applicable

‘In the case of:

percentage is:

Calendar year 2014

--86%

Calendar year 2015

--71%

Calendar year 2016

--57%

Calendar year 2017

--43%

Calendar year 2018

--29%

Calendar year 2019

--14%

Calendar years after 2019

--0%.’.

(3) EFFECTIVE DATE- The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2013.

(b) Determination of Self-Employment Income Above Contribution and Benefit Base After 2013-

(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 inserting ‘an amount equal to the applicable percentage (as determined under subsection (d)(2)) of’ before ‘that part of the net earnings from self-employment’; 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 SELF-EMPLOYMENT INCOME- For purposes of paragraph (1) of subsection (b), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be the percentage determined in accordance with the following table:

The applicable

‘In the case of:

percentage is:

Calendar year 2014

--86%

Calendar year 2015

--71%

Calendar year 2016

--57%

Calendar year 2017

--43%

Calendar year 2018

--29%

Calendar year 2019

--14%

Calendar years after 2019

--0%.’.

(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)(1)(I)--

(i) by striking ‘or’ after the semicolon; and

(ii) by inserting ‘and before 2014’ after ‘1974’;

(B) in subsection (b)--

(i) by redesignating paragraph (2) as paragraph (3); and

(ii) by inserting after paragraph (1) the following:

‘(2) For any taxable year beginning in any calendar year after 2013, 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 (A) an amount equal to the contribution and benefit base (determined under section 230) that is effective for such calendar year, minus (B) the amount of the wages paid to such individual during such taxable year; or’; and

(C) by adding at the end the following:

‘(l) For purposes of paragraph (2) of subsection (b), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph, shall be the percentage determined in accordance with the following table:

The applicable

‘In the case of:

percentage is:

Calendar year 2014

--86%

Calendar year 2015

--71%

Calendar year 2016

--57%

Calendar year 2017

--43%

Calendar year 2018

--29%

Calendar year 2019

--14%

Calendar years after 2019

--0%.’.

(3) EFFECTIVE DATE- The amendments made by this subsection shall apply with respect to taxable years beginning during or after calendar year 2014.

SEC. 202. INCLUSION OF SURPLUS EARNINGS IN SOCIAL SECURITY BENEFIT FORMULA.

(a) 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; and

(C) by inserting after clause (iii) the following new clauses:

‘(iv) 3 percent of the individual’s surplus average indexed monthly earnings to the extent such surplus average indexed monthly earnings do not exceed the excess of the amount established for purposes of this clause by subparagraph (B) over 1/12 of the contribution and benefit base for the last of such individual’s computation base years, and

‘(v) 0.25 percent of the sum of the individual’s surplus average indexed monthly earnings plus 1/12 of the contribution and benefit base for the last of such individual’s computation base years, to the extent such sum exceeds the amount established for purposes of clause (iv) by subparagraph (B).’.

(2) BEND POINT FOR SURPLUS EARNINGS- Section 215(a)(1)(B) of such Act (42 U.S.C. 415(a)(1)(B)) is amended--

(A) in clause (ii), by striking ‘the amounts so established’ and inserting ‘the amounts established for purposes of clauses (i) and (ii) of subparagraph (A)’;

(B) by redesignating clause (iii) as clause (v);

(C) in clause (v) (as redesignated), by inserting ‘or (iv)’ after ‘clause (ii)’; and

(D) by inserting after clause (ii) the following new clauses:

‘(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 2014, the amount established for purposes of clause (iv) of subparagraph (A) shall be $11,358.

‘(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 2014, the amount established for purposes of clause (iv) of subparagraph (A) shall equal the product of the amount established with respect to the calendar year 2014 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 2012.’.

(b) 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 inserting ‘(A)’ after ‘(b)(1)’; 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), by striking ‘subparagraph (B)’ and inserting ‘subparagraph (C)’ and by inserting ‘and determination of basic average indexed monthly income’ 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 (described in paragraph (2)(B)(ii)) 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).’.

(c) 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 2013.

(d) Unearned Income – All unearned income reported on an annual basis shall be subject to appropriate taxation in conjunction with current law.
SEC. 203. PROGRAM AMENDMENTS
(1) Any worker born before 1973 will maintain a retirement age of 65 at which full retirement benefits will be paid.
(2) Any worker born after 1973 will, for each year they pay into the Social Security Trust Fund have two months added to the retirement age until achieving a maximum retirement age of 67.

Plain English Summary
The Protecting and Preserving Social Security Act does the following --
Lifts Cap on high-income contributions -- Would get rid of the cap on high-income contributions for workers with annual income of more than $1,000,000.
Subjects unearned income to Social Security contributions.
For workers age 40 and younger, raises the retirement age to maximum age of 67 from current age of 65.
Adjusting CPI - Will make it so Social Security no longer uses the CPI-W (Cpi-worker), instead Social Security benefits would be inflated via the use of a new Consumer Price Index, the CPI-E, which stands for CPI-Elderly. This new CPI is focuses on the elderly and better balances the costs they have to purchase. (Medical, energy, etc)
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Landry
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Winter is Coming to the Red States
Madam Speaker,

I request unanimous consent, and I yield.
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Heather Holson
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Motion recognized. 24 hours for objections.
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Matt Urbana
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I object.
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Landry
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Winter is Coming to the Red States
Madam Speaker,

Does the gentleman care to give a reason for objecting to this bipartisan legislation that will provide over a century's worth of solvency to Social Security, or does he object for the mere purpose of obstructing?

I yield.
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Patrick Callaghan
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New England Republican >:D
Madame Speaker,

I rise not to object but to state my support for this legislation. Social Security is one of the greatest promises that we as a government have made to the people of this country. Unfortunately due to inaction by Congress and structural errors that promise has been in jeopardy not just in the present, but for generations to come. While I personally believe this Social Security system should be reformed to provide individuals with more control over their retirements, I believe this bill is a good solution for now and will allow us to have further discussions about this vital program in the future.

My parents worked hard their entire life and now are enjoying their retirement in comfort thanks to Social Security, the promise that they paid into their entire lives. I intend to vote Aye on this legislation as a personal vote for them and for those across my district that ave rightfully earned their retirement.

I yield.
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Heather Holson
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Objection noted. Debate continues.
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Matt Urbana
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Madam Speaker,

This is a despicable attempt to rob the successful of their hard earned money. Currently, the Social Security contribution is capped because those making more money do not receive significantly more benefits. However, this bill proposes to take more from these people while giving them no additional benefits. In fact, it takes away benefits by raising the retirement age.

Madam Speaker, this bill is an attack on our nation's job creators and our retirees to whom we owe a great deal. There is, surely, a better way to ensure the solvency of Social Security.

I yield.
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Melissa Sanchez
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Madam Speaker,

Does the Gentleman from Ohio have an alternative to raising the ceiling on the Social Security Tax?


I yield the floor, but reserve the balance of my time.

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Heather Holson
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Speaker Holson descends from the Rostrum

Madame Speaker,

This is one of the most important pieces of legislation that the House has taken up this year. It is imperative that we pass it. This bill will ensure that the United States will keep its promise to her seniors for decades to come. This bill will prevent a massive failure of Social Security and will protect millions of American seniors. I urge my colleagues to support this legislation.

I yield.

Retake the gavel
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Call
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I like potatos
Madam Speaker,

I also object to this bill, as I, like my colleague from Ohio, do not see this bill as a beneficial one. I think we need to raise the age for social security eligibility, and at least partially privatize social security as a whole.

However, I know many on both sides disagree with me on this. I just wanted to offer an alternative.


I Yield.
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Brenninger
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#Swaggy
Madame Speaker,

This bill is one of the most important measures taken up by this Congress this session. I urge my colleagues to vote in the affirmative, we as a nation have a promise to our seniors -- a promise that we will not leave them out in the cold during their old age. This bill fixes Social Security and ensures its livability for decades to come, this bill is the work of bipartisanship and is truly commonsense. It not only raises the cap but it also improves benefits offered to our seniors.

We are not a nation that breaks our promises.

I yield
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Melissa Sanchez
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Madam Speaker,

I ask for debate to be extended by 48 hours.
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Ambrose Griffith
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Madame Speaker,

I move to call the question.

I yield.
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Melissa Sanchez
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Madam Speaker,


I ask permission to revise and extend my remarks.

To an extent, I believe the Gentleman from Ohio has a point, although the one he has made may well not be the one that he has intended.

First, if one takes into account the increased length of life, the retirement age should be being adjusted to age 70.

Second, said adjustment to retirement age needs to take into account that some workers in occupations that are major physical stress may not be able to work until a new, longer retirement age.

Third, we must keep in mind that an adjustment to Social Security which improves its financial condition will also push the budget toward surplus. The last time this happened, we had a Republican who ran on a platform of "its your money" and promptly gave the money back, putting us in this spot now.

I do, however, request guidance on how to number a new addition. With all due respect to the authors, Madam Speaker, I can not figure out the numbering scheme of this legislation. It appears to start in Sections, then reverts to Titles, but the Titles don't run in numeric sequence.

I yield the floor at this time, but reserve the balance of my time.
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Melissa Sanchez
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Madam Speaker,

I regretfully object to the motion by the lady from Oregon. I had not yet yielded the floor.

I yield.
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Vissering
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I'm radioactive.
Madame Speaker,

I second the motion to call and yield.
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Anthony Rifenburg
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A Personal Campaign Machine - The Frank Underwood of VUSA
Madame Speaker,

I would like to announce my support for this bill. And echo the exact remarks made by my friend from Massachusetts.

I yield.
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Heather Holson
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With less than 24 hours left in debate the motion to call is dilatory.
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Melissa Sanchez
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Madam Speaker,

I rise to a Point of Order.


I currently show 30 hours remaining in debate, until slightly after 11 PM on the 18th. There is also a motiom made, but not yet seconded, to ectend debate.

I yield.
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