This measure would change the Internal Revenue Code so Social Security benefits are no longer included in gross income for tax purposes. It adds a termination provision to section 86 so that section will not apply to any taxable year beginning after the date of enactment. The text also directs the Treasury to appropriate, for each fiscal year, to each Social Security or Railroad Retirement fund an amount equal to the reduction in transfers to that fund caused by this change. The text includes a statement that tax increases should not be used to provide that revenue.
If you receive Social Security benefits, those benefits would not be counted as taxable income for taxable years beginning after enactment. The change applies across Social Security and Railroad Retirement programs. The Treasury would reimburse affected trust funds for any reduction in transfers. No publicly available information on how the change will affect individual tax refunds, credits, or exact tax bills for specific taxpayers.
The text requires annual appropriations from the Treasury to each Social Security and Railroad Retirement fund equal to the reduction in transfers caused by removing Social Security benefits from gross income. The bill text and provided metadata do not include totals, cost estimates, or official budget scores. No publicly available information on overall fiscal impact or timing of payments beyond the appropriation direction.
No publicly available information in the bill text or provided metadata states proponents' arguments or detailed rationale.
No publicly available information in the bill text or provided metadata states opponents' arguments or detailed concerns.