By Daisy Brown, Legislative Liaison
According to a 2025 TSCL study of more than 1,900 seniors, 90 percent of older Americans are dissatisfied with their monthly Social Security benefits checks. However, that could change soon if Congress passes the newly reintroduced You Earned It, You Keep It Act.
The bill, introduced by Senator Ruben Gallego of Arizona, would go beyond the $6,000 tax credit for seniors implemented by the One Big Beautiful Bill this summer, which lowered or eliminated federal taxes for many higher-earning seniors. The You Earned It, You Keep It Act would eliminate all federal income taxes on all Social Security benefits, regardless of how much a person earned throughout the year. Crucially, it would also extend Social Security’s solvency by an estimated 24 years—from 2034 to 2058—by expanding the Social Security payroll tax to cover wages above $250,000. (Americans currently pay no taxes toward Social Security on income above $176,100.)
The people most affected by the law in the short term, if it passes, would be seniors who earn moderate to high incomes. Most seniors already do not earn enough to be required to pay federal taxes on their Social Security benefits. Longer term, the benefits of expanding the Social Security payroll tax would be immense: Increasing Social Security’s solvency by another 24 years would strengthen the retirement of an entire generation.
Interestingly, this is not the first time the You Earned It, You Keep It Act has been introduced in Congress. Originally proposed in the House of Representatives by Angie Craig of Minnesota in January 2024, it did not receive a vote before elections that November.
At TSCL, we strongly support this legislation and will be pressuring both parties in Congress to move it forward. If passed, it will provide long-overdue tax relief to seniors who have worked hard and paid into Social Security their entire lives. It’s a common-sense step to ensure older Americans to keep more of what they’ve earned, and it would also benefit the retirement of future generations.