Social Security Check Tax Cut Act
Sponsored By: Senator Pete Ricketts
Introduced
Summary
Temporarily reduces the taxable share of Social Security retirement and Tier 1 railroad benefits. The bill would lower the portion of those payments counted as federal taxable income in 2026 and 2027 and treats disability benefits under a separate calculation.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Restore funds to Social Security, Medicare
If enacted, the government would transfer money from the general fund to the Social Security and Medicare trust funds. Transfers would equal the lost Treasury revenue caused by lowering taxable Social Security benefits. The transfers would be timed and allocated to match, as much as possible, how funds would have been moved without the tax change. This provision would take effect upon enactment.
Lower taxes on Social Security checks
If enacted, you would pay tax on less of your Social Security retirement or tier 1 railroad benefits. For tax year 2026 the taxable portion would be reduced by 10 percent. For tax year 2027 the taxable portion would be reduced by 20 percent. The bill requires a separate calculation for retirement/tier 1 benefits and for disability benefits; disability benefits are not reduced by this rule. The change would apply to tax years beginning after December 31, 2025 and before January 1, 2028.
Sponsors & CoSponsors
Sponsor
Pete Ricketts
NE • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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