Bill > S2716

This bill, titled the "You Earned It, You Keep It Act," proposes several significant changes to Social Security and tax laws. First, it would repeal the current taxation of Social Security benefits, meaning recipients would no longer have to pay income tax on their Social Security income. Second, the bill introduces a new mechanism for calculating Social Security benefits after 2025, which would include earnings over $250,000 in the benefit calculation formula. Specifically, individuals would receive an additional 2% credit for earnings exceeding $250,000, potentially increasing future Social Security payments for high-income earners. The bill also modifies how wages and self-employment income are taxed, creating new limitations on Social Security and Medicare taxes for income above $250,000. To ensure the Social Security Trust Funds are not financially harmed by these changes, the bill includes provisions to appropriate funds from the Treasury to make up for any revenue losses. The changes would primarily take effect for calendar years after 2025 and would apply to new Social Security beneficiaries starting in 2026. Additionally, the bill includes provisions to ensure that beneficiaries of Supplemental Security Income (SSI), Medicaid, and the Children's Health Insurance Program (CHIP) are not adversely affected by these modifications.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2716/all-info