Bill > S458

This bill proposes to eliminate federal income tax on Social Security benefits by amending Section 86 of the Internal Revenue Code. Specifically, the bill would remove the current requirement that a portion of Social Security benefits be included in a recipient's gross income for tax purposes, effectively making all Social Security benefits tax-free for seniors starting in the tax year following the bill's enactment. To ensure that Social Security Trust Funds are not financially harmed by this change, the bill includes a provision to appropriate equivalent funds from the U.S. Treasury to replace the lost tax revenue. Congress also indicates its intention that these replacement funds will not be generated through tax increases, though the mechanism for funding is not explicitly detailed. The bill, titled the "Senior Citizens Tax Elimination Act", aims to provide tax relief for senior citizens by eliminating the taxation of their Social Security income, which could potentially increase disposable income for retirees.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/458/all-info