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119-s-4196119th CongressWALLET

Strengthen Social Security by Taxing Dynastic Wealth Act

Sponsored By: Senator Van Hollen, Chris [D-MD]

Introduced

Summary

This bill would target concentrated inherited wealth and bolster Social Security by _taxing dynastic wealth_ and creating a unified Social Security Trust Fund.

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  • Families and estates face higher estate taxes and tighter gift rules. The basic exclusion becomes $3.5 million and the top estate tax rate rises to 45%. It also changes how the deceased spousal unused exclusion is calculated, generally capping that spousal benefit.
  • Workers and beneficiaries would see Social Security accounting changed. The bill would combine the Old‑Age and Survivors Insurance and Disability Insurance assets into a single Social Security Trust Fund and require annual transfers equal to 100% of specified payroll and self‑employment taxes starting for the fiscal year after January 1, 2027.
  • Federal administration and law would be updated to match the change. Numerous statutes and budget rules would be edited to rename the two trust funds as the Social Security Trust Fund and keep the existing Board of Trustees in place.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Single Social Security Trust Fund

This bill would create one consolidated Social Security Trust Fund starting January 1, 2027. Each fiscal year after that, it would appropriate into that fund amounts equal to 100% of specified payroll, self-employment, and related taxes. It would transfer existing OASI and DI assets into the new fund and require Title II benefit payments to be made only from it. It would also set monthly shortfall transfer rules, interest for Treasury transfers, investment rules, and expanded actuarial reporting.

Higher estate and gift taxes

This bill would lower the lifetime estate and gift tax exclusion to $3,500,000 for deaths and gifts after December 31, 2026. It would add three top estate tax brackets: 41% and 43% for mid ranges, and 45% on amounts above $1,500,000 (for example, estates over $1,500,000 would pay $555,800 plus 45% of the excess). It would cap a deceased spousal unused exclusion at $1,000,000 and change how portability is computed. It would also change the gift tax credit calculation by treating the basic exclusion as $1,000,000 for that purpose.

Sponsors & CoSponsors

Sponsor

Van Hollen, Chris [D-MD]

MD • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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