Bill > HR2909

This bill, called the "You Earned It, You Keep It Act," makes several significant changes to how Social Security benefits and taxes are calculated. First, it eliminates the current taxation of Social Security benefits, meaning recipients would no longer pay income tax on their Social Security income. Second, the bill introduces a new way of calculating Social Security taxes and benefits for earnings over $250,000, starting in 2026. For workers earning more than $250,000 annually, the additional earnings will be included in the Social Security benefit calculation at a rate of 2%, potentially increasing future retirement benefits. The bill also addresses how wages from multiple employers are taxed and creates special rules to ensure that employees don't overpay Social Security taxes when working for multiple employers. Additionally, the bill includes provisions to ensure that Social Security Trust Funds are not financially harmed by these changes and includes safeguards to protect beneficiaries of Supplemental Security Income (SSI), Medicaid, and the Children's Health Insurance Program (CHIP) from potential negative impacts. The changes are designed to be phased in gradually, with full implementation beginning in 2026.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2909/all-info