Higher Tax Relief for Seniors: Increased Thresholds for Social Security Benefits Taxation.
This bill raises the income thresholds above which Social Security benefits are subject to federal income tax. This change means many retirees will pay less in federal taxes or avoid taxation on their benefits entirely. The new thresholds, set to take effect in the 2026 tax year, will be adjusted annually for inflation, protecting seniors from excessive taxation due to rising living costs. The cost of these tax cuts is intended to be offset by proportional reductions in non-security discretionary government spending.
Key points
Increased Income Thresholds for Social Security Taxation: New base amounts are set at $34,000 for single filers and $68,000 for married couples filing jointly.
Inflation Adjustment: These thresholds will be adjusted annually for the cost-of-living (inflation) starting in 2026, ensuring the tax relief keeps pace with rising costs.
Funding Mechanism: The cost of the retiree tax relief will be covered by proportional rescissions (cuts) from non-security discretionary federal appropriations starting in fiscal year 2027.
Social Security Funds Protected: The Act ensures that any reduction in transfers to the Social Security and Railroad Retirement funds resulting from these tax changes will be covered by general Treasury funds.
Introduced
Citizen Poll