Section 1. Short Title
This Act may be cited as the “American Basic Income Guarantee Act” or ABIGA.
Section 2. Findings and Purpose
Findings:
1.1. Rapid technological advancement and global economic shifts have changed the nature of work and income security.
1.2. Many Americans face economic instability due to job displacement, wage stagnation, and the rising cost of living.
1.3. Providing a guaranteed basic income to every adult American citizen could alleviate poverty, stimulate the economy, and foster innovation and entrepreneurship.Purpose:
2.1. To establish a universal, unconditional basic income for all eligible American citizens as a foundational safety net.
2.2. To support individuals and families in meeting basic needs such as housing, food, healthcare, and education.
2.3. To reduce government administrative burdens and complexity by consolidating or simplifying certain means-tested programs.
2.4. To promote economic stability, encourage consumer spending, and enable Americans to invest in their futures.
Section 3. Definitions
For purposes of this Act:
- Basic Income Payment (BIP): A fixed monthly cash benefit distributed to eligible American citizens under this Act.
- Eligible American Citizen: Any U.S. citizen, aged eighteen (18) or older, who maintains primary residence in the United States.
- Means-Tested Program: Any existing federal or state social welfare program that restricts eligibility based on household income, assets, or other financial measures.
Section 4. Eligibility and Disbursement
Universal Eligibility:
1.1. Every American citizen aged eighteen (18) or older shall be entitled to receive the Basic Income Payment, unless otherwise disqualified under Section 4.2.
1.2. Eligibility shall not be conditioned on employment status, income level, family size, or marital status.Disqualifications:
2.1. Individuals who are incarcerated for felony offenses shall not receive payments during the period of incarceration.
2.2. Citizenship status must be verified using existing DHS and State Department protocols.Payment Structure:
3.1. The Basic Income Payment amount shall initially be set at a monthly rate determined by the Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, and adjusted annually for inflation.
3.2. Payments shall be disbursed on a monthly basis, via direct deposit to a verified bank account or through other secure methods approved by the Department of the Treasury.
Section 5. Funding
Allocation of Funds:
1.1. The Basic Income Payment shall be funded through a combination of revenue streams, including but not limited to:
- A modest increase in certain progressive tax rates above a high-income threshold;
- Reallocation of funds from consolidated or reduced means-tested programs, as deemed appropriate by Congress;
- Implementation of a modest financial transaction tax or similar measure.Reserve Fund:
2.1. A Reserve Fund shall be established to stabilize the Basic Income Payment during economic downturns. This fund shall receive a portion of revenue surpluses during periods of strong economic growth.Annual Budgetary Review:
3.1. Congress shall review the funding and sustainability of the Basic Income Payment during the annual budget cycle.
3.2. Adjustments to payment amounts or funding mechanisms shall be subject to the standard legislative process.
Section 6. Interactions with Existing Programs
Integration and Simplification:
1.1. Congress shall evaluate existing means-tested programs to determine whether they can be consolidated, reduced, or phased out without causing harm to the most vulnerable.
1.2. The Basic Income Payment is intended to partially replace some forms of government assistance, though individuals or households with special needs (e.g., disability, major medical expenses) may remain eligible for targeted benefits.No Double Counting:
2.1. If a means-tested benefit is reduced or eliminated, any savings realized may be directed toward sustaining or increasing the Basic Income Payment.
Section 7. Implementation
Administrative Agency:
1.1. The Secretary of the Treasury, in coordination with the Social Security Administration (SSA) and other relevant agencies, shall be responsible for administering the Basic Income Payment.
1.2. The Treasury shall maintain a database of all eligible citizens and facilitate the distribution of payments.Phase-In Period:
2.1. The program shall be phased in over a period of two (2) years to allow for the necessary logistical and infrastructural arrangements.
2.2. During the phase-in, pilot programs may be conducted to test payment mechanisms and resolve implementation challenges.
Section 8. Enforcement
Penalties for Fraud:
1.1. Any individual found to have willfully misrepresented information to collect a Basic Income Payment shall be subject to civil and criminal penalties, including repayment of improperly collected funds and possible fines.
1.2. Enforcement shall be overseen by the Inspector General of the Department of the Treasury.Program Integrity:
1.1. Regular audits of the Basic Income Payment system shall be performed by the Government Accountability Office (GAO) to ensure accurate disbursements and detect fraud or abuse.
Section 9. Oversight and Reporting
Annual Report:
1.1. The Secretary of the Treasury shall submit an annual report to Congress detailing:
- The total number of recipients and total amount disbursed;
- The program’s impact on poverty rates and median household income;
- Any recommendations for legislative or administrative improvements.Congressional Review:
2.1. Within five (5) years of full implementation, Congress shall conduct a comprehensive review of the Basic Income Payment’s impact on the economy, employment, public health, and other relevant indicators to determine if modifications are needed.
Section 10. Effective Date and Severability
Effective Date:
1.1. This Act shall take effect one hundred eighty (180) days after enactment, with the two-year phase-in beginning upon the effective date.
1.2. The Secretary of the Treasury shall issue any necessary regulations to implement this Act during the phase-in period.Severability:
2.1. If any provision of this Act, or its application to any person or circumstance, is held invalid by a court of competent jurisdiction, the remainder of this Act and the application of such provision to other persons or circumstances shall not be affected.
Note: This proposed law—ABIGA—is designed to provide a foundational income for all adult American citizens, reduce administrative overhead, and promote economic stability. In reality, detailed studies of its economic feasibility, inflationary impact, funding sources, and interactions with state and local governments would be necessary before any such legislation could be considered.
You said:
Below is a hypothetical bill drafted in the style of U.S. federal legislation. It proposes reforms to bolster Social Security by incorporating certain features observed in the Railroad Retirement system, along with other measures to ensure long-term solvency. Please note this is an illustrative example, not actual legislation or legal advice.
The Social Security Stabilization and Enhancement Act (SSSEA)
Section 1. Short Title
This Act may be cited as the “Social Security Stabilization and Enhancement Act” or SSSEA.
Section 2. Findings and Purpose
Findings:
1.1. Social Security is a cornerstone of financial security for millions of retired and disabled Americans.
1.2. The Social Security Trust Fund faces long-term funding challenges due to demographic shifts, increased longevity, and historical underfunding.
1.3. The Railroad Retirement system, which is partially modeled on Social Security but supplemented with additional funding mechanisms and features, has maintained a more stable reserve.
1.4. Strengthening Social Security’s revenue streams and adjusting benefit structures can ensure solvency for future generations.Purpose:
2.1. To stabilize and enhance the Social Security program’s Trust Funds by creating new funding sources and modifying existing revenue streams.
2.2. To provide more secure benefits, encourage workforce participation, and adjust eligibility rules in a fair, transparent manner.
2.3. To adopt best practices from the Railroad Retirement system, ensuring stability and adequacy of benefits.
Section 3. Definitions
For the purposes of this Act:
- Social Security Program: The Old-Age, Survivors, and Disability Insurance (OASDI) programs as administered by the Social Security Administration (SSA).
- Trust Fund: The Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund.
- Taxable Wage Base: The maximum amount of earned income subject to Social Security payroll taxes under 42 U.S.C. § 430.
- Railroad Retirement: The retirement program administered by the Railroad Retirement Board (RRB), which provides retirement and survivor benefits to eligible railroad workers.
Section 4. Adjustments to Taxable Wage Base and Contribution Rates
Incremental Increase of Taxable Wage Base:
1.1. The Secretary of the Treasury shall incrementally raise the Social Security taxable wage base over a five-year period to ensure higher-income earners contribute a fair share.
1.2. Beginning in the first year after enactment, the taxable wage base shall increase by an additional $25,000 over the current limit each year, until fully phased in, or until it reaches a threshold determined by an annual cost-of-living-based formula.Progressive Payroll Tax Adjustments:
1.1. For individuals earning above the newly adjusted wage base, an additional payroll surtax of 1% shall be applied to income exceeding the taxable wage base, up to a maximum of 3% phased in over three years.
1.2. The Secretary of the Treasury shall review these rates every five years and make recommendations to Congress for further adjustments to maintain long-term solvency.
Section 5. Enhanced Reserve and Investment Mechanisms
Creation of a Social Security Reserve Investment Board (SSRIB):
1.1. A new board, analogous to the Railroad Retirement Investment Board, shall oversee the portion of Trust Fund assets designated for investment in a diversified portfolio (e.g., low-risk bonds, conservative index funds).
1.2. The SSRIB shall be composed of representatives from the Treasury, the Social Security Administration, and experts in retirement fund management, appointed by the President and confirmed by the Senate.
1.3. The SSRIB shall report annually to Congress and the public on the performance, allocation, and management of these investments.Investment Policy Safeguards:
2.1. All investments must meet strict fiduciary standards to minimize risk and avoid conflicts of interest.
2.2. No more than a fixed percentage—initially set at 15%—of the Trust Fund reserves may be invested in equities (stock-index funds), ensuring diversification with government bonds and other stable instruments.
2.3. The Government Accountability Office (GAO) shall conduct periodic audits of the SSRIB’s activities and report findings to Congress.
Section 6. Benefit Computation and Adjustments
Cost-of-Living Adjustments (COLA) Alignment:
1.1. The formula for annual COLA shall be reviewed every three years to ensure it accurately reflects costs faced by senior citizens, including medical expenses.
1.2. An “Elder Index” factor, similar to the concept used in Railroad Retirement, may be incorporated to better track healthcare and living costs specific to retirees.Minimum Benefit Guarantee:
1.1. A new floor for Social Security benefits, set at a percentage of the federal poverty level, shall be created for workers with at least 30 years of covered earnings.
1.2. This measure is intended to reduce old-age poverty, similar to Railroad Retirement Tier 1 provisions.Delayed Retirement Credits:
1.1. To encourage extended workforce participation and reward those who work longer, the delayed retirement credit rate shall be increased by a fraction of one percent annually over five years, capping at an additional 10%.
1.2. The SSA shall conduct outreach to inform near-retirees about the financial advantages of deferring benefits.
Section 7. Disability Insurance Provisions
Separate Solvency for DI Trust Fund:
1.1. The Disability Insurance (DI) portion of the Trust Fund shall receive an incremental increase in payroll tax allocations (0.2%) phased in over three years, ensuring a dedicated revenue stream.
1.2. This increase shall reduce the need for interfund borrowing and provide sustainable benefits for disabled workers.Return-to-Work Incentives:
1.1. A pilot program mirroring the Railroad Retirement system’s partial disability approach shall be introduced, offering partial benefits to those able to work part-time without losing all disability coverage.
1.2. The SSA, in collaboration with the Department of Labor, shall establish workforce re-entry programs to assist disabled individuals who wish to transition back to gainful employment.
Section 8. Government Accountability and Oversight
Annual Actuarial Report:
1.1. The Chief Actuary of the SSA shall prepare an annual report assessing the solvency of the Trust Funds under the revised revenue, benefit, and investment structures.
1.2. This report shall be submitted to the President and to Congress for review and potential legislative action if the long-range actuarial balance falls below defined thresholds.Comptroller General Review:
1.1. The GAO shall conduct periodic reviews to evaluate the implementation of this Act, including any changes to the taxable wage base, new investments, and benefit computations.
1.2. The Comptroller General shall provide recommendations for any necessary statutory or regulatory revisions.
Section 9. Sunset and Reauthorization
- Reevaluation Period:
1.1. Ten (10) years after the effective date of this Act, Congress shall conduct a comprehensive review of the Social Security program to determine whether further adjustments are required.
1.2. If the program remains solvent at actuarially sound levels (75-year projections), provisions of this Act shall continue without modification. Otherwise, Congress shall propose reauthorizing or amending the Act.
Section 10. Effective Date and Severability
Effective Date:
1.1. This Act shall take effect one hundred eighty (180) days after its enactment.
1.2. The Secretary of the Treasury and the Commissioner of Social Security shall issue any necessary regulations to implement the provisions of this Act before the effective date.Severability:
2.1. If any provision of this Act, or its application to any person or circumstance, is held invalid, the remainder of this Act and the application of its provisions to other persons or circumstances shall not be affected.
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