Bill > HR8717

This bill, titled the "You Earned It, You Keep It Act," proposes the following key provisions: 1. It repeals the inclusion of Social Security benefits in gross income for federal income tax purposes, effectively making Social Security benefits tax-free. To offset the revenue loss, the bill appropriates funds from the Treasury to the Social Security and Railroad Retirement trust funds. 2. It sets a $250,000 cap on the amount of wages subject to Social Security payroll taxes (OASDI taxes) for calendar years when the Social Security contribution and benefit base is less than $250,000. This effectively eliminates the payroll tax on wages above that level. 3. It similarly limits the amount of self-employment income subject to the OASDI portion of the self-employment tax to the first $250,000 (or the Social Security contribution and benefit base, if higher) for tax years beginning after 2022. 4. It includes earnings over $250,000 in the Social Security benefit formula, providing a 2% credit for such "excess" earnings when calculating primary insurance amounts. 5. The bill also includes provisions to hold Supplemental Security Income (SSI), Medicaid, and Children's Health Insurance Program (CHIP) beneficiaries harmless from the changes made by the act.