Senator introduces bill to eliminate taxes on Social Security benefits [View all]
Source: NBC News/CNBC
Sept. 4, 2025, 8:29 PM EDT / Source: CNBC
President Donald Trump’s “big beautiful bill” provides relief to certain Social Security beneficiaries who pay taxes on their benefits. But it doesn’t eliminate those levies entirely.
Now, Sen. Ruben Gallego, D-Arizona, introduced a bill on Thursday — titled the You Earn It, You Keep it Act — to eliminate taxes on Social Security benefits. A House version of the bill was introduced by Rep. Angie Craig, D-Minnesota, in April. Gallego’s bill would permanently eliminate federal taxes on Social Security benefits.
It would also expand the Social Security payroll tax to apply to annual earnings over $250,000. Currently, the maximum earnings subject to Social Security payroll taxes is $176,100 in 2025. Consequently, high earners may only pay into the program for part of the year.
“Despite decades of paying into the system, seniors are still forced to pay taxes on their hard-earned benefits — all while the ultra wealthy barely pay into the system,” Gallego said in a statement.
Read more: https://www.nbcnews.com/business/personal-finance/senator-introduces-new-bill-eliminate-taxes-social-security-benefits-rcna229157
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