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No Tax on Social Security and Railroad Retirement Benefits

This bill aims to eliminate income tax on Social Security benefits and Tier 1 railroad retirement benefits. This means individuals receiving these benefits will no longer pay federal income tax on them, increasing their disposable income. The bill also ensures that Social Security trust funds will not be negatively impacted, as any lost revenue will be covered by general Treasury funds.
Key points
Social Security benefits and Tier 1 railroad retirement benefits will no longer be taxed.
Individuals receiving these benefits will have more money available as they won't pay income tax on them.
Social Security trust funds will be protected from financial loss, with shortfalls covered by the general fund.
The changes will apply to tax years beginning after the bill becomes law.
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Additional Information
No Tax on Social Security Act of 2021
Print number: HR 4453
Sponsor: Rep. Gosar, Paul A. [R-AZ-4]
Process start date: 2021-07-16