February 3, 2025
Mrs. Blackburn (for herself and Mr. Marshall) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to increase the threshold amounts for inclusion of Social Security benefits in income.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simpler Taxes Act
or the RETIREES FIRST Act
.
Sec. 2. Increase in threshold amounts for inclusion of Social Security benefits in income
(a) In general
Subsection (a) of section 86 of the Internal Revenue Code of 1986 is amended to read as follows:
(a) In general
Gross income for the taxable year of any taxpayer described in subsection (b) (notwithstanding section 207 of the Social Security Act) includes Social Security benefits in an amount equal to the lesser of—
(1)
85 percent of the Social Security benefits received during the taxable year, or
(2)
85 percent of the excess described in subsection (b)(1).
(b) Base amount
Subsection (c) of section 86 of such Code is amended to read as follows:
(c) Base amount
(1) In general
For purposes of this section, the term base amount means—
(A)
except as otherwise provided in this subsection, $34,000,
(B)
$68,000 in the case of a joint return, and
(C)
zero in the case of a taxpayer who—
(i)
is married as of the close of the taxable year (within the meaning of section 7703) but does not file a joint return for such year, and
(ii)
does not live apart from his spouse at all times during the taxable year.
(2) Inflation adjustment
(A) In general
In the case of any taxable year beginning after 2025, each of the dollar amounts in paragraph (1) shall be increased by an amount equal to—
(i)
such dollar amount, multiplied by
(ii)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting
calendar year 2024forcalendar year 2016in subparagraph (A)(ii) thereof.(B) Rounding
If any amount determined under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000.
(c) Social Security trust funds held harmless
There are hereby appropriated (out of any money in the Treasury not otherwise appropriated) for each fiscal year to each fund under the Social Security Act or the Railroad Retirement Act of 1974 an amount equal to the reduction in the transfers to such fund for such fiscal year by reason of the amendments made by this section.
(d) Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
Sec. 3. Reallocating non-security discretionary appropriations to support retiree tax relief
(a) Rescission
Subject to subsection (c), for fiscal year 2027, and each fiscal year thereafter, effective on the day after the date on which appropriations are made available through September 30 of the applicable fiscal year for the entire Federal Government, there is rescinded an amount equal to the total cost for such fiscal year, on a pro rata basis, from amounts made available through regular appropriation Acts.
(b) Regular appropriation Act
For purposes of this section, the term regular appropriation Act—
(1)
means an annual appropriation Act (as described in section 105 of title 1, United States Code) providing new budget authority (as defined in section 3 of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 622)) for the programs, projects, and activities under the jurisdiction of a subcommittee of the Committee on Appropriations of the Senate; and
(2)
includes—
(A)
a title, division, or other subdivision of an Act or resolution that, if it were a separate Act, would be an Act described in paragraph (1); and
(B)
a resolution or Act, or a title, division, or other subdivision of a resolution or Act, making continuing appropriations for all, or a portion of, a fiscal year.
(c) Exclusion
Subsection (a) shall not apply with respect to any discretionary appropriations included in the security category (as defined in Section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c))).
(d) Total cost
For purposes of this section, the term total cost means, with respect to a fiscal year, an amount (as determined by the Secretary of the Treasury) equal to the total reduction in the transfers to each fund under the Social Security Act or the Railroad Retirement Act of 1974 for such fiscal year by reason of the amendments made by section 2(b) (as determined without respect to any appropriation made pursuant to section 2(c)).
(e) OMB report
Not later than January 1, 2028, and annually thereafter, the Director of the Office of Management and Budget shall publish a report detailing any rescissions made under this section with respect to the most recently completed fiscal year.