Back to today’s briefing

Story perspectives

Gallego Proposes Tax-Free Social Security Benefits Act

9/24/2025

39 3 Full Breakdown

Summary

Story summary

Sen. Ruben Gallego introduces the You Earn It, You Keep It Act.
The act would end federal taxes on Social Security benefits.
Payroll taxes would rise on high earners to fund the system; August 2025 average was $2,008.31; 2026 adjustment projected ~2.7%.
Payments are Sept 24; Oct dates; 2034 depletion and retirement age not under consideration, per Frank Bisignano.

History

Historical Context

The 1983 Social Security Amendments marked a significant shift by raising the retirement age and taxing benefits, affecting millions of Americans. As of August 2025, the average benefit was reported at $2,008.31. Senator Ruben Gallego's recent proposal seeks to eliminate federal taxes on these benefits while increasing payroll taxes for high earners, reflecting ongoing debates about Social Security's sustainability.

1 of 2

Story summary

Sen. Ruben Gallego introduces the You Earn It, You Keep It Act.
The act would end federal taxes on Social Security benefits.
Payroll taxes would rise on high earners to fund the system; August 2025 average was $2,008.31; 2026 adjustment projected ~2.7%.
Payments are Sept 24; Oct dates; 2034 depletion and retirement age not under consideration, per Frank Bisignano.

1 / 2