Denver, Colorado – Two Democratic representatives, Angie Craig from Minnesota, and Yadira Caraveo from Colorado, have introduced a new legislative proposal known as the “You Earned It, You Keep It Act.” This act aims to eliminate federal taxation on Social Security benefits starting in 2025.
Caraveo emphasized that the proposed legislation would be funded by raising the cap for individuals earning more than $250,000 annually. She emphasized the importance of ensuring that hard-working individuals can enjoy a secure retirement without being burdened by excessive taxes on their Social Security benefits.
In addition to repealing federal taxation on Social Security benefits, the bill also seeks to alleviate the financial strain facing seniors due to historic inflation. This move is intended to provide direct benefits to middle-class retirees while not impacting their monthly benefits. Nancy Altman, president of Social Security Works, a group advocating for the interests of older Americans, expressed support for the bill. She believes that requiring the wealthiest individuals to contribute to Social Security at the same rate as everyone else will strengthen the program and provide a tax break to millions of low-income seniors.
Altman also highlighted a similar provision in the Social Security 2100 Act proposed by Rep. John Larson. This provision exempts certain beneficiaries from paying income tax on their Social Security benefits if their annual incomes fall below a specific threshold.
The introduction of the “You Earned It, You Keep It Act” highlights the ongoing efforts to address the financial challenges facing retirees and the importance of ensuring that the Social Security program remains sustainable for future generations. As the debate surrounding Social Security reform continues, the proposed legislation raises important questions about tax policy and retirement security in the United States.