Summarize this content to 2000 words in 6 paragraphs A bill filed by Representatives Daniel Webster and Thomas Massie could see the end of so-called double tax on Social Security recipients.The bill, H.R. 1040, the Senior Citizens Tax Elimination Act, would eliminate the “unjust double-tax on Social Security benefits,” according to a statement from Webster.
A file photo of a Social Security card and checks from the U.S. Treasury on October 14, 2021, in Washington, D.C.
A file photo of a Social Security card and checks from the U.S. Treasury on October 14, 2021, in Washington, D.C.
Kevin Dietsch/Getty images
Why It MattersThe representatives who brought the bill forward have said seniors who pay into their Social Security via taxation throughout their lives should not then be taxed on their benefits once they receive them.The estimated average monthly Social Security retirement benefit for January 2025 is $1,976, according to the Social Security Administration (SSA). For many retirees, these Social Security payments are a primary source of income, and taxation on them can strain their resources.What to KnowThe Senior Citizens Tax Elimination Act would amend the Internal Revenue Code of 1986 to end tier I railroad retirement and Social Security benefits as part of an individual’s gross income.This would result in exempting Social Security benefits from taxation, which Webster and Massie have said will boost retirement income for older people.Americans are eligible for Social Security benefits as early as 62 years old, and receive the benefits following a minimum of 10 years of work while paying Social Security taxes.The United States has an aging population, and 72 percent of Americans worry that Social Security benefits will run out in their lifetime, per a 2024 study from the Nationwide Retirement Institute. If fewer people pay into Social Security, even if it’s from their own benefits, then there may be even less money to go around for future generations.Co-sponsors of this bill are Rep. Andy Biggs (R-AZ), Rep. Lauren Boebert (R-CO), Rep. Tim Burchett (R-TN), Rep. Eric Burlison (R-MO), Rep. Ben Cline (R-VA), Rep. Michael Cloud (R-TX), Rep. Monica De La Cruz (R-TX), Rep. Brad Finstad (R-MN), Rep. Lance Gooden (R-TX), Rep. Paul Gosar (R-AZ), Rep. Mark Green (R-TN), Rep. Marjorie Taylor Greene (R-GA), Rep. Harriet Hageman (R-WY), Rep. Andy Harris (R-MD), Rep. Diana Harshbarger (R-TN), Rep. Anna Paulina Luna (R-FL), Rep. Cory Mills (R-FL), Rep. Barry Moore (R-AL), Rep. Ralph Norman (R-SC), Rep. Andy Ogles (R-TN), Rep. Scott Perry (R-PA), Rep. Chip Roy (R-TX), Rep. Martin Stutzman (R-IN), Rep. Tom Tiffany (R-WI), Rep. Jeff Van Drew (R-NJ), Rep. Derrick Van Orden (R-WI), Rep. Randy Weber (R-TX), and Rep. Tony Wied (R-WI).The bill has been filed at the same time as the RETIREES Act from Roger Marshall and Marsha Blackburn, which also aims to remove taxation from Social Security benefits.The White House has proposed similar legislation via a promised “biggest tax cut in history.” The president has said any offset in taxes from these tax cuts will be covered by tariffs, which some economists are skeptical about.Webster has been contacted by Newsweek for further comment.What People Are SayingAndy Mangione, senior vice president of the Association of Mature American Citizens Action, said in a statement: “Every year, millions of seniors become eligible for either Social Security or tier I railroad retirement benefits.”After working for decades, paying taxes on their hard-earned income to fund these federal programs, some seniors are forced to pay income tax on the benefits they receive from the federal government. Taxing benefits which were created from already taxed funds is nonsensical and curtails retirement benefits seniors have been promised. Seniors deserve to reap the full benefits of their hard work from career-long contributions to Social Security and the Railroad Retirement Plan.”What Happens NextThis is the second time this bill has been brought to the House floor. It was also raised in 2023 and made its way to the Subcommittee on Social Security, which is a subsection of the House Ways and Means Committee, before halting.It will have to start back on the House floor again and work its way up through committees. Given the House, Senate and White House have all proposed bills around ending taxes on Social Security, it will likely pass.
