Shakopee, Minnesota – As senior citizens face challenges related to their finances, U.S. Representative Angie Craig has introduced a new bill called the “You Earned It, You Keep It Act”, aimed at eliminating the federal tax on Social Security benefits. With many seniors having to make tough decisions on their limited budgets, the legislation is designed to provide more financial relief to those on fixed incomes.
This move comes as retired individuals like Sally Hokkanen and her husband rely on Social Security and 401ks to make ends meet. The impact of inflation has significantly reduced their incomes, making it difficult to cover expenses. With the proposed bill, Hokkanen and others in similar situations are hopeful for a change that could alleviate some of their financial worries.
According to Craig, the bill would be financed by raising the cap on the Social Security payroll tax, ensuring that workers continue to contribute until they reach an income threshold of $250,000. This change is expected to ensure the sustainability of the Social Security trust fund until 2054 and potentially reduce the national debt by $9 trillion over 75 years.
The potential impact of the bill is significant, as it would mean an extra couple of thousand dollars a year for retirees like Hokkanen and her husband. This additional income could provide them with more opportunities to travel and enjoy their golden years.
The proposed “You Earned It, You Keep It Act” has the potential to make a positive impact on the lives of many senior citizens in Minnesota and across the nation. As the legislation moves forward, it offers hope for financial relief and a better quality of life for those who have dedicated their years to contributing to society.