Representative Angie Craig Introduces Legislation to Eliminate Federal Taxes on Social Security Payments

Press Release

Today, U.S. Representative Angie Craig introduced the You Earned It, You Keep It Act, which would repeal federal taxes on Social Security benefits for retirees across the country. Over the past year, inflationary pressures have stretched the already limited budgets of many retired Americans. Craig's legislation would allow seniors to keep the benefits they rightfully earned after decades of working and contributing to the American economy.

"Social Security is a promise we have made to the American people -- if you work hard and play by the rules, the dignity of a secure retirement will be within your reach. But taxing the very benefits American workers have earned after decades on the job diminishes our promise and threatens to undermine the financial security of retirees already struggling with rising prices," said Representative Craig. "Eliminating this tax will help Social Security benefits go further and ensure that American retirees have all the resources they need after a lifetime of hard work."

Representative Craig's legislation seeks to eliminate the unjust double tax on Social Security benefits that Americans have been forced to pay for nearly 40 years. The You Earned It, You Keep It Act would repeal all of the federal taxation on Social Security benefits beginning in 2023, putting money directly into the pockets of middle-class retirees. The tax cuts would have no effect on the monthly benefits that enrollees receive each month -- and would be fully paid for by raising the cap for individuals earning more than $250,000 annually and asking them to continue paying into Social Security each year. According to non-partisan analysis, Craig's legislation would also improve the long-term solvency of Social Security compared to current law -- ensuring that this critical retirement program is able to support American retirees for years to come. Craig's legislation is supported by Social Security Works, an organization dedicated to protecting and improving Social Security for the millions of American seniors who have earned and rely on its benefits.

As inflation continues to impact the economy, Representative Craig has remained committed to lowering costs for working families. Last month, the House passed two of Representative Craig's bills to lower costs at the grocery store and the gas pump -- the Year-Round Fuel Choice Act and the Strengthening the Agriculture and Food Supply Chain Act. Craig has also fought to lower the cost of health care and prescription drugs by introducing and passing the Affordable Insulin Now Act, which would cap the out-of-pocket cost of insulin at $35 per month and urging the Biden Administration to take action to close the "family glitch,' which has made health care unaffordable for more than 5 million families nationwide.

Source