Social Security Benefits Tax Relief Act of 2005

The Social Security Benefits Tax Relief Act of 2005 proposed to lower the maximum amount of Social Security and railroad retirement benefits subject to federal income tax. Specifically, it sought to repeal a 1993 law that allowed up to 85% of these benefits to be taxed, effectively reverting the maximum taxable portion to 50% for higher-income retirees. To ensure Medicare funding remained stable, the bill required the federal government to replace the lost tax revenue by transferring money from the general fund into the Hospital Insurance Trust Fund.