Ending Double Taxation: 5 Key Takeaways on New Bill To Eliminate Social Security Taxes

In an effort to address the issue of double taxation on Social Security benefits, U.S. Sen. Ruben Gallego introduced the You Earn It, You Keep It Act.

The act aims to eliminate federal income tax on Social Security benefits for over 55 million beneficiaries, easing financial burdens for retirees.

Here are the key takeaways from the proposal:

FULL STORY: Tired of Being Taxed Twice? A New Bill Would End Taxes on Social Security for Good

Key takeaways

• The You Earn It, You Keep It Act aims to end federal income tax on Social Security benefits, benefiting around 22 million seniors who rely solely on this income.

• The proposal shifts the financial burden to high earners by lifting the payroll tax cap and extending the solvency of the Social Security fund through 2058.

• The act addresses public distrust in the Social Security program, with 79% of Americans doubting they will receive full benefits in retirement.

• By eliminating federal taxes on Social Security benefits and taxing high earners, the bill aims to ensure the fairness and longevity of Social Security payments.

• While the act could potentially save retirees thousands of dollars annually, it does not fully address the broader financial challenges faced by retirees, such as housing costs.

The You Earn It, You Keep It Act presents a significant opportunity to provide financial relief to retirees dependent on Social Security benefits while also tackling the looming issue of fund solvency. However, its success hinges on navigating political hurdles and ensuring comprehensive solutions to the broader financial challenges faced by retirees.

This summary has been generated with AI tools and edited by Realtor.com News & Insights editors. The full story, written and edited by Realtor.com News & Insights newsroom journalists, is linked at the top of the summary.