Bill · S. 1109· Senate(119-S-1109)
Social Security Check Tax Cut Act
- Introduced
- 3/25/2025
- Last activity
- 3/25/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Pete Ricketts
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The "Social Security Check Tax Cut Act" aims to amend the Internal Revenue Code of 1986. It seeks to provide a temporary reduction in how much social security and tier 1 railroad retirement benefits are included in a person's gross income. This reduction would apply to taxable years beginning after December 31, 2025, and before January 1, 2028. The bill establishes specific reduction percentages for different years. Additionally, it includes provisions to protect specific trust funds by appropriating amounts to cover revenue reductions.
Yes· 3 of 8
Would people over 65 be better off under this?+7
The bill directly increases the disposable income of seniors receiving Social Security and railroad retirement benefits.
Would retired people be better off under this?+7
The bill provides direct financial relief to retirees through significant temporary tax reductions on their benefits.
Does this strengthen Social Security?+6
The bill increases the net take-home pay of Social Security and railroad retirement recipients through tax reductions.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Reduction in taxable income for retirees: Under Section 2(a)(3), taxpayers receiving social security benefits under section 202 of the Social Security Act or tier 1 railroad retirement benefits would see a reduction in the amount included in their gross income. This is a 10 percent reduction for taxable years beginning after December 31, 2025, and before January 1, 2027, increasing to a 20 percent reduction for taxable years beginning after December 31, 2026, and before January 1, 2028.
-
Protection of Social Security and Medicare funds: Section 2(b) states that amounts equal to the reduction in revenues will be appropriated to the Federal Old-Age and Survivors Trust Fund, the Federal Disability Insurance Trust Fund, and the Medicare Hospital Insurance Trust Fund. This is intended to replicate the transfers that would have occurred if the amendment had not been enacted.
Potential Negative Impacts for People
- Temporary nature of the benefit: According to Section 2(a)(1), the special rules and reductions are only applicable for taxable years beginning after December 31, 2025, and before January 1, 2028.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Retirees+7Good For Seniors+7Good For Middle Class Households+5Good For Low Income Households+4
- Social Issues And Justice
- Improves Social Security+6Improves Poverty Reduction+3
- Economy And Finance
- Reduces Middle Class Taxes+5
- Healthcare
- Increases Medicare Funding+5
- 3/25/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate