Senators Marshall, Blackburn Introduce Bill to Reduce Excessive Taxation on Social Security Benefits

Washington, D.C. – U.S. Senators Roger Marshall, M.D. and Marsha Blackburn (R-TN) introduced the Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simple Taxes (RETIREES FIRST) Act. This legislation will lower the tax burden on Social Security benefits for seniors and offset this tax relief by redirecting funds from inefficient non-security discretionary programs, safeguarding the Social Security and Medicare trust funds while prioritizing retirees.

Historically, Social Security benefits were entirely exempt from federal income tax. Current tax exemptions have not been adjusted for inflation, causing “bracket creep” that increasingly taxes middle-income retirees. Today, nearly 56% of retirees pay taxes on their Social Security benefits, compared to less than 10% in 1984. Many retirees rely on Social Security as their primary source of income. The added tax burden on Social Security benefits reduces their quality of life, especially as inflation erodes the value of their benefits.

“After four years of record-high inflation, the current tax on Social Security has been devastating to America’s retirees,” said Senator Marshall. “By cutting taxes on Social Security, this bill will ensure America’s seniors can keep more of their hard-earned money and fix a fundamental flaw in our tax system.” 

To read the full text of the bill, click HERE.