New legislation, H.R. 3206, the Senior Citizens Tax Elimination Act, would repeal the inclusion in gross income of Social Security benefits.
Social Security advocates criticized the bill, saying it would hurt the solvency of the Social Security and Medicare trust funds.
Under current law, up to 85% of a retiree’s Social Security benefits are taxed, depending on income. This tax revenue is deposited to the trust funds.
The bill specifies that taxes cannot be raised to replace this revenue.
Author(s): Melanie Waddell
Publication Date: 22 May 2023
Publication Site: Think Advisor