This bill would change the Internal Revenue Code to stop including Social Security benefits in a person's gross income for federal income tax. It adds a termination so section 86 would not apply for any taxable year beginning after the bill becomes law. The bill also directs the Treasury to appropriate, each fiscal year, amounts equal to any reductions in transfers to each fund under the Social Security Act or the Railroad Retirement Act of 1974 caused by removing benefits from taxable income. The bill includes a statement that tax increases should not be used to provide that revenue.
If you get Social Security benefits, those benefits would no longer be counted as part of your federal taxable income for tax years starting after the law takes effect. The text does not give numbers or examples of how individual tax bills would change.
The bill directs the Treasury to appropriate money equal to the reduction in transfers to Social Security and railroad retirement funds for each fiscal year. The bill text does not include dollar amounts, cost estimates, or a detailed fiscal impact.
The bill text itself says that tax increases should not be used to provide the revenue needed to make the trust funds whole. Sponsors listed in the bill are Senators Tommy Tuberville and Tim Sheehy. The text does not include additional stated reasons or supporting arguments.
No publicly available information.