Proposed Tax Elimination: A new bill seeks to eliminate federal taxes on Social Security benefits, allowing retirees to retain more of their income.
Current Taxation: Presently, up to 85% of Social Security benefits can be taxed, depending on combined income levels.
Income Threshold Adjustments: The proposal suggests raising income thresholds to $34,000 for single filers and $68,000 for married couples, reducing the number of beneficiaries subject to taxation.
Legislative Status: The bill has been introduced in Congress and is under consideration. Its passage would depend on legislative approval and subsequent implementation.
Concerns: Critics express concerns that reducing taxation could strain the Social Security trust fund or increase the national deficit.
Next Steps: Retirees should monitor the bill's progress and consult financial advisors to understand potential personal impacts.