Sen. Tommy Tuberville (R-AL) introduced legislation Wednesday to write into law one of President Donald Trump’s key campaign pledges, Breitbart News can exclusively reveal.

Tuberville and Sen. Tim Sheehy (R-MT) introduced the Senior Citizens Tax Elimination Act to stop the unjust double tax on Social Security benefits.

“Seniors work the majority of their adult lives so that they can spend their retirement comfortably,” Tuberville said in a statement to Breitbart News ahead of the bill’s introduction. “In a day and age where the cost of living has skyrocketed, our seniors should not experience a second tax on their Social Security, when they’ve already paid income tax on their paychecks.”

The Senior Citizens Tax Elimination Act would amend the Internal Revenue Code of 1986 to terminate the inclusion of tier I railroad retirement benefits and Social Security benefits in an individual’s gross income. As Tuberville’s legislation takes effect, seniors’ tax liability will be significantly reduced and the “double tax” on seniors’ federally earned benefits will end.

https://www.breitbart.com/poli...tm_campaign=20250206

So if you collect Social Security and still work, the Social Security portion of your income would not add to taxable income?

I hope this passes, SS age is creeping up on me and I would like to retire one day. I am about fed up with all the taxes I am paying, it has gotten out of hand.

Property taxes need to be made illegal for primary homeowners.

Also, in addition to no tax on tips or overtime, bonuses received should also be tax exempt.

It does seem odd, comparing to, say a traditional IRA, that while you can't deduct your social security tax payments from taxable income, you still have to include the proceeds in taxable income.

In a traditional IRA, you do have to include withdrawals in income but you had gotten to deduct the contributions when made.

So I see the logic here. Here's hoping.

I don't think DOGE has found that much money under a rock yet. While as a soon-to-be beneficiary of this I like it, where is the replacement revenue going to come from?

Not sure this is a perfectly accurate resource, but that shows a range of $550B - $1.5T. That's a big freaking number over 10 years. I guess when you boil it down it's only $150B per year, but $100B here, $100B there, eventually it's like real money.....

Estimated fiscal impacts

quote:

Originally posted by Georgeair:
I don't think DOGE has found that much money under a rock yet. While as a soon-to-be beneficiary of this I like it, where is the replacement revenue going to come from?

Well, I don't know. I guess we'll see.

https://x.com/DOGECommittee/st.../1887653585422332080

quote:

Originally posted by downtownv:
Tuberville and Sen. Tim Sheehy (R-MT) introduced the Senior Citizens Tax Elimination Act to stop the unjust double tax on Social Security benefits...

Thank you, senators. Get this one done.

quote:

Originally posted by Patriot:
So if you collect Social Security and still work, the Social Security portion of your income would not add to taxable income?

As much as I hate to say "tax it", that "still work" part would, and should, still be taxed. It's only fair to all who pay taxes. The point of the proposed legislation is, no "double taxation" on SS benefits.

quote:

Originally posted by Balzé Halzé:

Also, in addition to no tax on tips or overtime, bonuses received should also be tax exempt.

What is the logic for this? They are income - money paid for services. If it is just a way to reduce taxes, then why not just lower the tax rate? Why should a bonus not be income? Or a tip?

The logic is to eventually be rid of income tax altogether.

quote:

Originally posted by Balzé Halzé:
The logic is to eventually be rid of income tax altogether.

Where will the money come from? Corporate income tax? Ad valorem taxes? Taxes on assets? Land?

You're going to pay one way or the other.

We probably all agree that we should cut spending. But we will still have a big national budget, and that stuff has to be paid for.

quote:

Originally posted by jhe888:

quote:

Originally posted by Balzé Halzé:
The logic is to eventually be rid of income tax altogether.

Where will the money come from? Corporate income tax? Ad valorem taxes? Taxes on assets? Land?

You're going to pay one way or the other.

We probably all agree that we should cut spending. But we will still have a big national budget, and that stuff has to be paid for.

There are many ways of restructuring the income flow of the US Government, it doesn't need to be the same way it is, and it's potentially better to rid the US of payroll taxes, complicated income tax returns.

Imagine the growth in GDP and reduction potential for US consumer debt if you had 100% of your total income as disposable investable income.

Several states have zero income/payroll taxes, they all run perfectly, with smaller revenue departments easier methods of collecting taxes in the form of sales tax, etc.

https://www.fairtax.org/

[/QUOTE]

Where will the money come from? Corporate income tax? Ad valorem taxes? Taxes on assets? Land?

You're going to pay one way or the other.

We probably all agree that we should cut spending. But we will still have a big national budget, and that stuff has to be paid for.[/QUOTE]

This is the problem in terms of thinking.

Did you read what Para posted about Elon and PMC?

If you are receiving money / pay from that which you have already been taxed, those received monies should not be taxed. For example:

Social Security payments should not be taxed.

Active Duty Military folks should not have federal taxes withheld from their pay. (SS and state taxes, yes)

Local police / fire should not have local taxes withheld.

Etc.., etc., etc.

Complicated in application but, baby steps first.

Social Security "bends the curve" several ways, paying out less and taxing more to people who have earned more. It has been bastardized across the years to be less of a burden on the government.

It is past time to restructure it. Getting rid of income tax on it will be a good first step.

I wonder how it will affect state income taxes which currently tax it? Here in UT we take the AGI from our 1040 and use that as a nearly final number for state taxable income. Will states take less from us if federal taxes no longer apply to SS?

quote:

Originally posted by Georgeair:
I don't think DOGE has found that much money under a rock yet. While as a soon-to-be beneficiary of this I like it, where is the replacement revenue going to come from?

Not sure this is a perfectly accurate resource, but that shows a range of $550B - $1.5T. That's a big freaking number over 10 years. I guess when you boil it down it's only $150B per year, but $100B here, $100B there, eventually it's like real money.....

Estimated fiscal impacts

The thing is.....you don't need to replace the revenue with anything at all. You just "fix the glitch" and the .gov has to make do with what's left. That is the entire point of this exercise as I understand it.

quote:

Originally posted by Georgeair:
I don't think DOGE has found that much money under a rock yet. While as a soon-to-be beneficiary of this I like it, where is the replacement revenue going to come from?

Not sure this is a perfectly accurate resource, but that shows a range of $550B - $1.5T. That's a big freaking number over 10 years. I guess when you boil it down it's only $150B per year, but $100B here, $100B there, eventually it's like real money.....

Estimated fiscal impacts

I get really tired of the argument always being “where do we get MORE revenue so we can do the right thing and cut taxes?” how about cutting SPENDING???

These past few days have shown that the out of control, unregulated, spending and corruption without oversight is the real problem with having enough money.

This is like a giant “reset” and I am loving it.

I think its doable so long as the US government stops giving a away 100's of billions of dollars for things that don't benefit US interests or citizens. The problem is to many lawmakers on both sides of the isle use US tax dollars for their political gain and pet projects.

In 2022 the total federal tax contributions by individuals (not corporations) was about 2.1 Trillion.

Find 2 Trillion in savings through DOGE and you won’t need to collect any individual taxes.

You could cut taxes by 50% immediately and still have lots of waste and fraud

I’d posit that a tip to a food server is a gift. Not part of their wages from their employer. I almost always tip in cash even if paying my dinner bill with my credit card. It’s their problem if they are not reporting it accurately.