You Earned It, You Keep It Act

This bill, currently under consideration in the House Ways and Means Committee and Energy and Commerce Committee, would make changes to how Social Security benefits and taxes are treated under federal law. If enacted, it would eliminate the current practice of including Social Security benefits in a recipient's taxable income, meaning seniors and other beneficiaries would no longer owe federal income tax on those benefits. The bill would also introduce new rules for workers earning over $250,000 annually, including such earnings in Social Security benefit calculations at a 2% rate starting in 2026, which could increase future retirement benefits for higher earners. Additionally, the bill addresses how Social Security taxes are calculated when workers have multiple employers and includes provisions intended to protect the Social Security Trust Funds from financial harm due to these changes. The bill is in early stages and has not yet been voted on by the full House.