Safeguarding American Families and Expanding Social Security Act of 2026

This bill proposes changes to the Social Security system that would affect workers and retirees by allowing a portion of earnings above the current cap to be taxed and counted toward future benefits. It introduces a temporary mechanism where 80% of income exceeding the contribution base is taxable in 2026, with this percentage decreasing by 20 points annually until it reaches zero in 2030. Additionally, the legislation increases the benefit formula to include 5% of earnings above the cap and adjusts how cost-of-living increases are calculated by using a new index specifically for elderly consumers. These changes aim to expand the amount of income considered for benefit calculations while modifying how future benefit amounts are adjusted for inflation.