Senate Bill Seeks to End Social Security Benefit Taxes, Extend Solvency to 2058

Senator Ruben Gallego and Representative Angie Craig have introduced the You Earn It, You Keep It Act, which aims to permanently eliminate federal taxes on Social Security benefits starting in 2026. The proposal intends to increase financial security for retirees by ensuring they are not taxed again on benefits they earned through payroll contributions during their working years. To maintain the Social Security program's solvency, the bill would expand payroll taxes to apply to earnings above $250,000, up from the current cap of $176,100, thereby requiring high earners to contribute more. This legislation follows President Donald Trump's 2025 One Big Beautiful Bill Act, which temporarily enhanced deductions for seniors but did not fully repeal Social Security benefit taxes. Advocates argue that the new bill responsibly funds the tax cut while protecting the program's long-term viability and providing relief to millions of older Americans. Critics highlight the contrast between Trump's temporary measure and Gallego's permanent reform, with Gallego emphasizing that his bill truly ends taxes on Social Security benefits.