On January 25, Representative Angie Craig (D-MN) introduced the You Earned It, You Keep It Act (H.R. 7084) which would eliminate federal taxes on Social Security benefits.

“This bill is a win-win – it's a tax cut for seniors and a way to ensure more Americans can depend on the Social Security benefits they’ve earned. And on top of that, it’s fiscally responsible,” said Rep. Craig in a statement. “I’m leading the charge on this issue in Congress because we need to get money back in the pockets of middle-class Americans. The You Earned It, You Keep It Act will help us get it done.”

The bill would be paid for by raising the cap on the Social Security payroll tax, including earnings over $250,000 in the Social Security benefit formula.

To view the text of the bill, click here.

According to an analysis from the Social Security Office of the Chief Actuary, the legislation would extend Social Security through 2054 and reduce the federal debt by $8.9 trillion over 75 years.

The You Earned It, You Keep It Act has seven cosponsors and has been referred to the House Committees on Ways and Means and Energy and Commerce. To follow the progress of the bill, click here.