You Earned It, You Keep It Act | ChamberLight

IN COMMITTEE· 119TH CONGRESS

Senate BillS 2716Taxation

You Earned It, You Keep It Act

INTRO SEP 4· LAST ACTION SEP 4

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Became Law

WHAT THE BILL DOES

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This bill matters because it directly impacts the financial well-being of millions of American seniors and people with disabilities who rely on Social Security benefits. Eliminating the income tax on these benefits means more money in the pockets of beneficiaries, which could help them cover rising costs of living, healthcare, and other expenses. This change could be particularly impactful for middle and upper-income retirees who currently have a portion of their benefits taxed.

Simultaneously, the change to how Social Security taxes are collected from high earners addresses concerns about the long-term solvency of the Social Security system. By having higher earners contribute more, the bill aims to bolster the financial health of the trust funds. This could lead to a more stable system for future generations, though it would mean a greater tax burden for a specific segment of the workforce. The debate around this bill would likely center on fairness, the impact on different income groups, and the overall sustainability of Social Security.

KEY PROVISIONS

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PROVISION 01

Repeals the federal income tax on Social Security and Railroad Retirement benefits.

This directly increases the disposable income for millions of current and future beneficiaries.

PROVISION 02

Ensures Social Security and Railroad Retirement Trust Funds are fully reimbursed for any revenue lost due to the elimination of taxes on benefits.

This protects the financial stability of the trust funds, preventing a reduction in their resources from the tax repeal.

PROVISION 03

Removes the existing cap on earnings subject to Social Security taxes for income above $250,000, starting after 2025.

This increases the amount of Social Security taxes paid by high-income earners, potentially bolstering the trust funds' revenue.

PROVISION 04

Creates a 'donut hole' in Social Security taxation where income between the annual Social Security contribution and benefit base and $250,000 remains untaxed.

This introduces a specific structure for how Social Security taxes apply to different income brackets above the current wage cap.

SPONSORSHIP

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ACTION TIMELINE

2 EVENTS

SEP 4

Introduced in Senate

INTROREFERRAL

SEP 4

Read twice and referred to the Committee on Finance.

INTROREFERRAL

BILL INFO

TypeSenate Bill

NumberS 2716

Congress119th

StatusIn Committee

IntroducedSep 4, 2025

Last actionSep 4, 2025

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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED SEP 4, 2025

Senate BillS 2716Taxation

You Earned It, You Keep It Act

INTRODUCED SEP 4, 2025· LAST ACTION SEP 4, 2025

PASSAGE CHANCES

—%

READING

14 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps Congress.gov

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed Senate

Passed House

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Repeals the federal income tax on Social Security and Railroad Retirement benefits.

This directly increases the disposable income for millions of current and future beneficiaries.

med

Ensures Social Security and Railroad Retirement Trust Funds are fully reimbursed for any revenue lost due to the elimination of taxes on benefits.

This protects the financial stability of the trust funds, preventing a reduction in their resources from the tax repeal.

high

Removes the existing cap on earnings subject to Social Security taxes for income above $250,000, starting after 2025.

This increases the amount of Social Security taxes paid by high-income earners, potentially bolstering the trust funds' revenue.

med

Creates a 'donut hole' in Social Security taxation where income between the annual Social Security contribution and benefit base and $250,000 remains untaxed.

This introduces a specific structure for how Social Security taxes apply to different income brackets above the current wage cap.

DEADLINES & DATES

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

After date of enactment

Repeal of income tax on Social Security benefits becomes effective for any taxable year beginning after the date the bill is enacted.

After 2025

Changes to determining wages and self-employment income above the contribution and benefit base (the 'donut hole' taxation) become effective.

FUNDING & AUTHORIZATIONS

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

AMOUNT	PROGRAM	TYPE	YEARS
An amount equal to the reduction in transfers to the funds by reason of repealing the tax on benefits.	Social Security Trust Funds (including Federal Hospital Insurance Trust Fund) and Railroad Retirement Act of 1974 funds	mandatory	Each fiscal year

GLOSSARY

AI-written

Internal Revenue Code of 1986: The official compilation of all federal tax laws in the United States.
Gross Income: All income from whatever source derived, unless specifically excluded by law, used to calculate how much tax an individual owes.
Social Security Benefits: Payments made by the Social Security Administration to retired workers, their families, and people with disabilities, funded by payroll taxes.
Taxable Year: The annual accounting period for keeping records to figure income tax, typically January 1st to December 31st for most individuals.
Social Security Trust Funds: The two federal trust funds (Old-Age and Survivors Insurance and Disability Insurance) that hold the money used to pay Social Security benefits.
Contribution and Benefit Base: The maximum amount of earnings subject to Social Security (and Medicare) taxes in a given year. Earnings above this amount are not taxed for Social Security.
Wages: All remuneration for employment, including the cash value of all remuneration paid in any medium other than cash, used for tax purposes.

ACTION TIMELINE

2 EVENTS

SEP 4, 25

Introduced in Senate

INTROREFERRAL

SEP 4, 25

Read twice and referred to the Committee on Finance.

INTROREFERRAL

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You Earned It, You Keep It Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

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ACTION TIMELINE

BILL INFO

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Discussion

You Earned It, You Keep It Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

DEADLINES & DATES

FUNDING & AUTHORIZATIONS

GLOSSARY

ACTION TIMELINE

SPONSORS

READER REACTIONS

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