Rep Craig Reintroduces Legislation to Eliminate Federal Taxes on Social Security Benefits
EAGAN, MN – Today, U.S. Representative Angie Craig reintroduced her bill to eliminate federal taxes on Social Security benefits for seniors.
Rep. Craig’s You Earned It, You Keep It Act would eliminate all federal taxes on Social Security benefits – putting money back into the pockets of Minnesota’s retirees.
The bill would be paid for by raising the cap on the Social Security payroll tax, so higher-earning Americans continue paying into Social Security.
According to a non-partisan analysis, Rep. Craig’s bill would allow the Social Security Administration to continue making all payments on time and in full through 2058 – 24 years longer than the current projection of 2034.
The same analysis showed that the You Earned It, You Keep It Act would reduce the federal debt by $9 trillion over the next several decades.
Reps. Ro Khanna (CA-17), Brittany Pettersen (CO-07), Sean Casten (IL-06) and Josh Riley (NY-19) are original co-sponsors of the bill.
“Minnesota seniors have worked their whole lives for their hard-earned benefits, and they deserve to be able to retire comfortably,” said Rep. Craig. “My common-sense bill puts money back into the pockets of retirees, while reducing the federal debt. It’s a win-win.”
“Our seniors spend their whole lives working hard and paying into Social Security – they shouldn’t pay needless taxes when it’s finally time to collect the benefits they’ve earned,” said Rep. Pettersen. “I’m proud to support Congresswoman Craig’s legislation to put money back in the pockets of our seniors by cutting federal taxes on this program. This bill also strengthens Social Security for the long-term, so hardworking people now — and generations down the line — can keep more of what they’ve earned and retire with dignity.”
“Americans spend decades paying into Social Security. It’s their money, and it’s not right that they have to pay federal taxes when they get it back,” said Rep. Casten. “I’m proud to join Rep. Craig and co-sponsor this bill to lower taxes on seniors and help make life more affordable.”
Rep. Craig’s bill is endorsed by The Senior Citizens League, one of the nation’s largest nonpartisan seniors groups, and Social Security Works, an organization dedicated to protecting and improving Social Security.
"America's seniors spent decades building this country and paying into Social Security,” said Shannon Benton, Executive Director, The Senior Citizens League. “They deserve to keep every dollar they’ve earned — not watch it get chipped away with taxes. Ending taxes on Social Security means more money in their pockets, more stability, and more dignity in the retirement they’ve worked hard for.”
"Social Security Works is delighted to endorse the You Earned It, You Keep It Act,” said Nancy Altman, President of Social Security Works. “The bill strengthens Social Security by requiring the wealthiest to contribute to Social Security at the same rate as the rest of us, while also providing a tax break to millions of seniors. We commend Congresswoman Craig for championing this important legislation."
You can read the text of Rep. Craig’s You Earned It, You Keep It Act here.
###