Minnesota Democratic Representative Angie Craig has reintroduced legislation aimed at eliminating federal taxes on Social Security benefits for seniors. The bill, known as the You Earned it, You Keep it Act, is designed to extend full benefits for two decades and reduce the federal debt by a significant amount, according to the analysis it cited.
Initially introduced in August 2022, the bill would be funded by raising the Social Security payroll tax cap so that higher-earning workers would continue to contribute to Social Security. The Social Security’s Office of the Chief Actuary found that two provisions within the bill would extend the ability of the Old Age, Survivors, and Disability Insurance (OASDI) program to pay scheduled benefits for an additional 20 years.
According to the analysis, the proposed bill would move the date of projected depletion of the combined OASI and DI Trust Fund reserves from 2034 to 2054, assuming enactment of the proposal. Additionally, it claimed that the Act would reduce the federal debt by $8.9 trillion over 75 years.
Representative Craig expressed her support for the bill stating, “This bill is a win-win—it’s a tax cut for seniors and a way to ensure more Americans can depend on the Social Security benefits they’ve earned. And on top of that, it’s fiscally responsible.” She emphasized the need to put money back into the pockets of middle-class Americans and highlighted how the You Earned It, You Keep It Act would help achieve this goal.
Several other representatives, including Ro Khanna, Yadira Caraveo, Don Davis, Mary Peltola, Andrea Salinas, and Hillary Scholten, were original co-sponsors of the bill. The organization Social Security Works also endorsed Rep. Craig’s bill.
The reintroduction of the legislation by Representative Craig showcases the ongoing efforts to address the financial well-being of seniors and the impact of Social Security benefits on the federal debt. As the bill gains support and continues to be scrutinized, its potential to provide relief for seniors and contribute to the country’s fiscal responsibility remains a topic of interest and debate in Congress.