Bill · S. 358· Senate(119-S-358)
RETIREES FIRST Act
- Introduced
- 2/3/2025
- Last activity
- 2/3/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Marsha Blackburn
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "RETIREES FIRST Act," seeks to change how Social Security benefits are included in taxable income. It amends the Internal Revenue Code of 1986 to increase the threshold amounts for these benefits. The act establishes new base amounts of $34,000 for individuals and $68,000 for joint returns. These amounts are subject to annual inflation adjustments based on cost-of-living data. To fund these changes, the bill rescinds portions of non-security discretionary appropriations. These changes are intended to take effect for taxable years beginning after December 31, 2025.
Yes· 3 of 6
Would people over 65 be better off under this?+6
The bill provides tax relief by increasing the threshold amounts for including Social Security benefits in taxable income.
Would retired people be better off under this?+6
The bill directly benefits retirees by increasing the base amount of Social Security benefits that are exempt from taxation.
Would middle-income households be better off under this?+5
The bill increases the amount of Social Security benefits that can be received before they are taxed, providing relief to middle-income seniors.
The opposite
Does this reduce what the federal government spends?-5
The bill rescinds non-security discretionary appropriations to fund the changes to Social Security taxation.
Who it would affect, and how
Potential Positive Impacts for People
-
Changes to Social Security taxation: The bill modifies the amount of Social Security benefits included in gross income, which may benefit taxpayers by changing how much of their benefits are considered taxable income (Section 2(a)).
-
Inflation protection for thresholds: The bill includes a provision to increase the base amount for taxation each year based on cost-of-living adjustments, which helps the thresholds keep up with inflation (Section 2(b)(2)).
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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 make up for any reductions caused by these changes, ensuring the funds are held harmless (Section 2(c)).
Potential Negative Impacts for People
- Reduction in government spending: The bill rescinds amounts from non-security discretionary appropriations to cover the costs of the tax changes, which reduces the money available for various programs, projects, and activities under the jurisdiction of the Senate Committee on Appropriations (Section 3(a)).
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+6Good For Seniors+6Good For Middle Class Households+5Good For Low Income Households+3
- Social Issues And Justice
- Improves Social Security+4
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Government Spending-5
- 2/3/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Roger MarshallRepublican · Kansas