Bill > S358

This bill proposes to modify how Social Security benefits are taxed by increasing the threshold amounts for including these benefits in taxable income. Specifically, the bill would raise the base amount for calculating taxable Social Security benefits to $34,000 for individual taxpayers and $68,000 for joint returns, with a special provision for married individuals filing separately. The bill includes an inflation adjustment mechanism that would automatically increase these thresholds annually based on the cost of living, starting in 2026. Additionally, the legislation includes a provision to ensure that Social Security Trust Funds are not financially harmed by these changes by appropriating funds to offset any potential losses. To help fund this tax relief, the bill also introduces a mechanism to rescind a proportional amount from non-security discretionary appropriations in fiscal year 2027 and subsequent years, effectively reallocating funds to support retiree tax relief. The changes would take effect for taxable years beginning after December 31, 2025, and the Office of Management and Budget would be required to publish annual reports detailing the rescissions made under this act.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/358/all-info