You Earned It, You Keep It Act

This bill would end federal income tax on Social Security benefits for tax years beginning after it becomes law, and would use general Treasury money to replace the revenue the Social Security and Medicare trust funds would lose. Starting in 2026, it would apply the Social Security payroll tax to wages and self-employment income above $250,000, in addition to earnings up to the existing taxable limit. Workers with more than one employer whose combined wages exceed the limits would owe any extra payroll tax directly. Earnings above $250,000 would count toward a new added piece of the Social Security benefit formula for people who first become eligible after 2025. The bill also increases the national average wage index by set percentages after 2025 and keeps the benefit changes from affecting eligibility for SSI, Medicaid, and CHIP.

Full text and official record on Congress.gov

Sponsors

• Ruben Gallego Democrat sponsor
• 0 cosponsors