On January 25, 2024, Representative Angie Craig, D-MN, introduced the “You Earned It, You Keep It Act,” H.R. 7084, which seeks to enhance America’s seniors’ financial stability while contributing to the nation’s fiscal health. The “You Earned It, You Keep It Act” proposes eliminating all federal taxes on Social Security benefits starting in 2025, a move designed to significantly increase retirees’ disposable income.
The act suggests increasing the Social Security payroll tax cap for higher-income earners to support this tax elimination. This means individuals earning more would contribute more to the Social Security fund, ensuring its financial health and sustainability. An analysis indicates that this move could extend the solvency of Social Security payments through 2054, twenty years longer than current projections, and would also reduce the federal debt by $8.9 trillion over 75 years.
