Gallego Introduces Legislation to Actually Eliminate Taxes on Social Security

Bill comes as Trump and Republicans in Congress continue to falsely claim their tax bill eliminated taxes on Social Security benefits

WASHINGTON - Senator Ruben Gallego (D-AZ) introduced the You Earn It, You Keep It Act to eliminate federal taxes on Social Security benefits, without impacting the Social Security Trust Fund.

"Like a lot of Americans, I've been paying into Social Security since my first job at fourteen. But despite decades of paying into the system, seniors are still forced to pay taxes on their hard-earned benefits - all while the ultra-wealthy barley pay into the system at all," said Senator Gallego. "Trump claimed he ended taxes on Social Security. My bill actually does it. Permanently."

READ MORE: Senator introduces new bill to eliminate taxes on Social Security benefits (CNBC)

The You Earn It, You Keep It Act would eliminate federal taxes on Social Security. By expanding the Social Security pay-roll tax to covered earnings above $250,000 a year, the bill ensures high-earners pay their fair share and allows the Social Security Administration to continue making all payments on time and in full through 2058 - 24 years longer than the current projection of 2034.

Read the full bill text HERE.

Companion legislation was introduced in the House by Rep. Angie Craig (MN-02).

Support for the You Earn It, You Keep It Act:

"The Senior Citizens League (TSCL) is pleased to see Senator Gallego introducing the Senate version of the You Earned It, You Keep It Act. This legislation provides long-overdue tax relief for seniors who have worked hard and paid into Social Security their entire lives. Eliminating federal taxes on Social Security benefits is a commonsense step to ensure older Americans can keep more of what they've earned. We strongly support this bill and commend Senator Gallego and Representative Craig for their leadership," said Shannon Benton, Executive Director, The Senior Citizens League.

"Social Security Works enthusiastically endorse the You Earned It, You Keep It Act. The bill reduces the income taxes of millions of Americans by completely eliminating the taxation of Social Security benefits, while responsibly paying for the tax cut. Moreover, it ensures that all Social Security benefits will be paid in full and on time for the foreseeable future by requiring the wealthiest to contribute to Social Security at the same rate as the rest of us. We commend Senator Gallego for championing this important legislation," said Nancy Altman, President of Social Security Works.