Bill · S. 458· Senate(119-S-458)
Senior Citizens Tax Elimination Act
- Introduced
- 2/6/2025
- Last activity
- 2/6/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Tommy Tuberville
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "Senior Citizens Tax Elimination Act," aims to change how Social Security benefits are treated for tax purposes. It proposes to amend the Internal Revenue Code of 1986 to stop including Social Security benefits in a person's gross income. This change would take effect for any taxable year beginning after the date the subsection is enacted. To ensure the system stays stable, the bill includes provisions to protect the Social Security and Railroad Retirement trust funds. It mandates that money from the Treasury be used to make up for any lost transfers to these funds.
Yes· 3 of 10
Would people over 65 be better off under this?+7
Seniors will benefit directly from the repeal of the inclusion of Social Security benefits in gross income.
Would retired people be better off under this?+7
Retirees benefit from the elimination of federal income tax on their Social Security benefits.
Would households on low incomes be better off under this?+5
The elimination of taxes on Social Security benefits provides increased disposable income for low-income households.
The opposite
Does this reduce what the federal government spends?-2
The bill requires new Treasury appropriations to replenish Social Security and Railroad Retirement trust funds.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Relief on Benefits: By amending Section 86 of the Internal Revenue Code of 1986, the bill would stop the inclusion of Social Security benefits in gross income, which could benefit individuals receiving these payments (Section 2(a)).
-
Protection of Trust Funds: The bill appropriates money from the Treasury to each fund under the Social Security Act and the Railroad Retirement Act of 1974 to match the reduction in transfers caused by the new tax rule, ensuring the funds are held harmless (Section 2(b)(1)).
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
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 Low Income Households+5Good For Middle Class Households+5Good For African Americans+3Good For Asian Americans+3Good For Hispanic Americans+3Good For White Americans+3
- Social Issues And Justice
- Improves Social Security+4
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Government Spending-2
- 2/6/2025
- 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.
Tim SheehyRepublican · Montana