CNS News– Retirement may soon become a little sweeter for seniors across the nation, as lawmakers propose a groundbreaking measure to end federal taxation on Social Security retirement benefits. Dubbed the “You Earned It, You Keep It Act,” the bill aims to provide much-needed relief for retirees, ensuring that they can fully enjoy the benefits they’ve worked so hard to earn.
Under the proposed legislation, federal taxes on Social Security income would be eliminated starting in 2025, offering a welcome reprieve for millions of retirees grappling with the rising cost of living. Minnesota Representative Angie Craig heralds the bill as a “win-win” solution, providing seniors with a well-deserved tax cut while safeguarding the stability of Social Security for future generations.
The potential impact of this bill cannot be overstated, as 85% of Social Security benefits are currently subject to federal taxation. For retirees relying on fixed incomes and additional sources of taxable income, such as retirement accounts, the elimination of these taxes could provide significant financial relief and enhance their overall quality of life in retirement.
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Furthermore, the bill seeks to address the growing disparity in Social Security payroll taxes, with the wage base set to increase to over $250,000 under the proposed legislation. This adjustment would ensure that high earners contribute their fair share towards the program, while alleviating the tax burden on middle and lower-income retirees.
While similar proposals have been introduced in the past, the “You Earned It, You Keep It Act” represents a renewed effort to enact meaningful reform and provide tangible benefits for America’s seniors. As the bill makes its way through the legislative process, retirees and advocates alike remain hopeful that this time, the promise of tax-free Social Security benefits will finally become a reality.
During ongoing tax reforms and policy debates, the prospect of tax-free Social Security benefits offers a glimmer of hope for retirees navigating their golden years. With each passing day, seniors and their families eagerly await news of the bill’s progress, recognizing the potential for positive change and a brighter financial future ahead.