New Bill Repeals Social Security Tax, Raises Cap on Wealthy

capitol in Washington DC with a Social Security card and money

Representives Angie Craig, D-Minn, and Yadira Caraveo, D-Colo., have sponsored new legislation — the You Earned It, You Keep It Act — to repeal the federal taxation of Social Security benefits starting in 2025.

“For almost a century, America has upheld a fundamental promise — that if you work hard and play by the rules, you’ll be able to enjoy a secure retirement. However, historic inflation is eroding seniors’ budgets, jeopardizing the financial security they’ve worked their whole lives to achieve,” Caraveo said Monday in a statement.

“It would also be fully paid for by raising the cap for individuals earning more than $250,000 annually and asking them to continue paying into Social Security each year,” she explained.

“The last thing they need is for the government to double tax their hard-earned Social Security benefits,” said Caraveo, referring to Colorado beneficiaries, who — along with those of Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont and West Virginia — are taxed at the state level as of 2024, if they earn above certain preset income thresholds. 

See also  Put Your Money Where Your Heart Is: How One Insurer Makes Insurance More Affordable & Accessible