Overview
- The You Earn It, You Keep It Act would repeal federal taxation of Social Security benefits, shifting new payroll tax contributions to earnings above $250,000.
- If enacted this year, the repeal would begin with the 2026 tax year, showing up on returns filed in early 2027.
- The Senate measure mirrors a House bill from Rep. Angie Craig, with referrals to the Senate Finance Committee and the House Ways and Means Committee.
- Senior advocacy groups, including The Senior Citizens League, publicly backed the legislation as long-overdue tax relief for retirees.
- Fiscal watchdogs such as the Committee for a Responsible Federal Budget warn the change could strain long-term funding without robust offsets, and the bill faces uncertain prospects in a divided Congress.