Strengthen Social Security by Taxing Dynastic Wealth Act
Sponsored By: Senator Van Hollen, Chris [D-MD]
Introduced
Summary
Consolidates Social Security financing into a single Social Security Trust Fund. This bill would also restore earlier estate and gift tax brackets and redirect specified payroll and estate/gift tax receipts into that unified Trust Fund starting in 2027.
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- Families and estates: Estates and gifts would be subject to 2009-style estate tax brackets with a top rate of 45% above certain thresholds and a redefined basic exclusion of $3.5 million for a key subsection. The bill also tightens gift-tax and deceased spousal unused exclusion rules.
- Social Security beneficiaries and workers: It would create one Social Security Trust Fund by moving existing OASI and DI securities and balances into it and by appropriating to the Fund amounts equal to 100% of specified payroll taxes, self-employment taxes, and estate and gift taxes as certified and estimated by Treasury and the Commissioner of Social Security.
- Federal agencies and budget rules: The bill would rename OASI and DI references across many statutes, make the Trustees a continuous Board, and align budget and sequestration cross-references to the single Social Security Trust Fund.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Consolidated Social Security Trust Fund
If enacted, the bill would create a single Social Security Trust Fund and move OASI and DI assets into it on January 1, 2027. Beginning with the first fiscal year after January 1, 2027, the government would appropriate amounts equal to specified payroll taxes, specified self-employment taxes, and estate and gift taxes each year into that Fund, with Treasury estimates and later adjustments. The Fund would invest those amounts the same way as existing Trust Fund assets, and Title II benefit payments would be required to come only from the new Fund. If the Fund lacks enough assets for a month, the Treasury must transfer a set shortfall amount on the first day of that month and the Fund would pay interest to the general fund equal to the Fund's earnings. The Trustees' yearly report would also add separate actuarial analysis for disabled, retired, and survivor beneficiaries, and existing trustee terms and many statutory references would carry forward to the new Fund.
Higher estate and gift taxes for wealthy
If enacted, this bill would raise estate and gift tax burdens for many very wealthy households starting January 1, 2027. The basic exclusion used in one key computation would be set at $3,500,000 for estates and gifts after December 31, 2026. The bill replaces the top estate tax row with three brackets: 41% between $1,000,000 and $1,250,000, 43% between $1,250,000 and $1,500,000, and 45% over $1,500,000 (with the listed base amounts used in the formulas). The bill would also cap the deceased spousal unused exclusion (DSUE) and require gift-credit calculations as if the basic exclusion were $1,000,000, which narrows spousal portability and can raise tax bills for large transfers.
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.
View on Congress.gov