Would Repeal Federal Taxes Social Security benefits For retirees?

Traveling knowledge

By: John Derric

Social Security benefits for retirees

Representative Angie Craig (D-MN) introduced legislation this month that would repeal federal taxes on Social Security benefits for retirees.

federal taxation

If passed, the You Earned It, You Keep It Act (HR 8717) would repeal all federal taxation on Social Security retirement benefits beginning in 2023.

payroll tax wage cap

advertisement Craig claims the tax repeal will be fully paid for by implementing the expansion of the payroll tax wage cap beyond $250,000 per year.

Social Security payroll tax.

Under current law, wages over $147,000 are exempt from Social Security payroll tax.

financial security of retirees

“But taxing the benefits American workers make after decades on the job undermines our promise and threatens to undermine the financial security of retirees already grappling with rising prices, " said Craig.

Social Security's long-term solvency

Craig said the proposed law would also improve Social Security's long-term solvency compared to the current law, according to a non-partisan analysis.

WEP Repeal Bill in Senate

Senators Ted Cruz (R-Texas) and Bill Cassidy (R-LA) earlier this month introduced the Equal Treatment of Public Servants Act (S. 3401), which would ensure teachers, police officers, firefighters and other public servants promises to do.

formula for calculating benefits

Specifically, the bill would replace the formula for calculating benefits - known as the Windfall Elimination Provision (WEP) - with a "fair formula that allocates workers based on benefits they have earned throughout their lifetimes."

retired government employees and beneficiaries

“This is especially true in Texas, where more than 189,000 retired government employees and beneficiaries are directly affected by unfair WEP.

working with Representative Brady and other members

I am grateful for Sen. Cassidy's support in this effort and look forward to working with Representative Brady and other members of the House to pass this legislation and send it to President Trump .

Public servants not punished

“Public servants should not be punished for dedicating their lives to the betterment of their communities.

receive the benefits they earned

This bill is the only WEP bill that Congress can actually pass so that teachers, firefighters, police officers and others can receive the benefits they earned," Dr. Cassidy said.

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