Bill · S. 2716· Senate(119-S-2716)
You Earned It, You Keep It Act
- Introduced
- 9/4/2025
- Last activity
- 9/4/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Ruben Gallego
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the "You Earned It, You Keep It Act," seeks to amend the Internal Revenue Code of 1986 and the Social Security Act. It aims to repeal the inclusion of social security benefits in gross income. The legislation also modifies how wages and self-employment income are taxed after 2025, specifically targeting remuneration exceeding $250,000. Additionally, it changes the Social Security benefit formula to include a portion of earnings above that threshold. It includes provisions to ensure Social Security Trust Funds are held harmless during these transitions.
Yes· 3 of 7
Would people over 65 be better off under this?+7
The bill provides tax relief by repealing the inclusion of Social Security benefits in gross income.
Does this strengthen Social Security?+6
The bill repeals the inclusion of Social Security benefits in gross income and adjusts the benefit formula to include excess earnings.
Does this raise taxes on the highest earners?+5
The bill imposes new taxes on wages and self-employment income that exceed $250,000.
The opposite
Would high-income households be better off under this?-5
The bill imposes new taxes on wages and self-employment income exceeding $250,000.
Would people with substantial wealth be better off under this?-3
The bill increases the tax burden on high earners through new social security tax requirements.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Relief on Social Security Benefits: The bill repeals the inclusion of social security benefits in gross income, which would change how these benefits are taxed (Section 2).
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Benefit Adjustments for High Earners: The bill amends the Social Security benefit formula to include 2 percent of an individual's excess average indexed monthly earnings, which are earnings exceeding $250,000 or the contribution and benefit base (Section 4).
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Protection for SSI, Medicaid, and CHIP Beneficiaries: The bill includes a provision to hold these beneficiaries harmless, ensuring that benefit determinations for eligibility and amounts are not negatively impacted by the changes to the Social Security benefit formula (Section 4).
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Protection for Social Security Trust Funds: The bill appropriates money from the Treasury to the Social Security and Railroad Retirement funds to offset reductions caused by the repeal of the inclusion of benefits in gross income (Section 2).
Potential Negative Impacts for People
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New Taxes on High Earners: The bill implements a limitation on the amount of wages and self-employment income that are not subject to certain taxes, effectively targeting remuneration that exceeds $250,000 (Section 3).
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Tax on Employees with Multiple Employers: For employees receiving wages from more than one employer that exceed certain thresholds, a new tax is imposed to account for the difference in tax calculation methods (Section 3).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Wealthy Taxes+5Improves Fiscal Responsibility+3
- Social Issues And Justice
- Improves Social Security+6Improves Poverty Reduction+2
- Demographic And Interest Groups
- Good For Seniors+7Good For Low Income Households+3Good For High Income Households-5Good For High Net Worth Individuals-3
- Healthcare
- Increases Medicaid Funding+2
- 9/4/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.