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No Tax on Social Security Benefits; New High-Earner Contribution Rules

This act eliminates taxes on Social Security benefits, allowing retirees and beneficiaries to keep more of their money. It also introduces new Social Security contribution rules for high-income earners to ensure the stability of the funds. These changes aim to improve beneficiaries' financial well-being and support the system long-term.
Key points
Social Security benefits will no longer be taxed, increasing beneficiaries' take-home income.
Individuals earning over $250,000 annually will contribute Social Security taxes on all their earnings, not just up to a cap.
Social Security and Railroad Retirement trust funds will be protected from revenue loss due to the repeal of benefit taxation.
Earnings above $250,000 will be included in calculating future Social Security benefits, potentially increasing pensions for high-income earners.
The act takes effect after 2025, impacting earnings and benefits in subsequent years.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_2716
Sponsor: Sen. Gallego, Ruben [D-AZ]
Process start date: 2025-09-04
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

You Earned It, You Keep It Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_2716.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-09-04.

What are the main provisions?

Key points include:

  • Social Security benefits will no longer be taxed, increasing beneficiaries' take-home income.
  • Individuals earning over $250,000 annually will contribute Social Security taxes on all their earnings, not just up to a cap.
  • Social Security and Railroad Retirement trust funds will be protected from revenue loss due to the repeal of benefit taxation.
  • Earnings above $250,000 will be included in calculating future Social Security benefits, potentially increasing pensions for high-income earners.
  • The act takes effect after 2025, impacting earnings and benefits in subsequent years.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Gallego, Ruben [D-AZ].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Benefits