Repeal of Social Security Benefit Taxation In the News Again - CNBC
As the reality of the One Big Beautiful Bill Act’s Social Security benefit taxation offset unfolds, renewed interest in permanently eliminating this burdensome tax has shown up in the U.S. Senate. Earlier this week, Sen. Ruben Gallego (D-AZ) introduced the Senate version of House Bill H.R. 2909 authoredl by Rep. Angie Craig (D-MN). CNBC Personal Finance Reporter Lorie Konish provides a recap of the Bill’s intent in a post on their website, which you can access here…
As explained in Ms. Konish’s post, the “You Earned It, You Keep It” bills call for permanent eliminaton of the benefit taxation, differing from the OBBBA provision in two key aspects. The OBBBA bonus deduction is only available for tax return filers aged 65 and over, while the new bills do not specify age restrictions. The OBBBA provision is also temporary, sunsetting after the 2028 tax year.
Another significant difference between the “You Earned It, You Keep It” bills and the OBBBA provision is the inclusion of offsets to compensate for the loss of Social Security revenue. Both the Senate and House bills include provisions to apply FICA tax to earnings above $250,000.
This bill just makes common sense. The bill solves two issues (1) eliminates taxes on S.S – which is a double tax and (2) the offset – tax earnings over $ 250,000 – s/b apply to all earnings – and extends trust funds to 2058.
I suppose to make it more appealing – could consider a smaller adjustment for the employer match. however, if they can afford to pay high wages the employer can afford the match.