You Earned It, You Keep It Act

Tax Relief on Benefits: The bill repeals the inclusion of Social Security benefits in gross income, meaning people would no longer pay federal income tax on those benefits (Section 2).

Higher Benefit Potential: By including earnings over $250,000 in the benefit formula, individuals with higher incomes may see an increase in their primary insurance amounts (Section 4).

Protection for Low-Income Beneficiaries: People receiving SSI, Medicaid, and CHIP will not have their eligibility or benefit amounts negatively affected by the changes in the Social Security benefit formula (Section 4(e)).

Increased Taxes for High Earners: Individuals earning more than $250,000 will now be subject to Social Security taxes on that portion of their income, whereas previously there was a lower limitation (Section 3).

New Tax Burden for Multiple Employers: Employees who work for more than one employer in a year and earn over $250,000 may be hit with an additional tax to cover the gap between what was withheld and what would have been paid if they had only one employer (Section 3(c)).