Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB358 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 358
5	5	To amend the Internal Revenue Code of 1986 to increase the threshold
6	6	amounts for inclusion of Social Security benefits in income.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	FEBRUARY3, 2025
9	9	Mrs. B
10	10	LACKBURN(for herself and Mr. MARSHALL) introduced the following
11	11	bill; which was read twice and referred to the Committee on Finance
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to increase
14	14	the threshold amounts for inclusion of Social Security
15	15	benefits in income.
16	16	Be it enacted by the Senate and House of Representa-1
17	17	tives of the United States of America in Congress assembled, 2
18	18	SECTION 1. SHORT TITLE. 3
19	19	This Act may be cited as the ‘‘Reducing Excessive 4
20	20	Taxation and Inefficiencies by Reforming Elder Exemp-5
21	21	tions to Support Fairness, Inflation Relief, and Simpler 6
22	22	Taxes Act’’ or the ‘‘RETIREES FIRST Act’’. 7
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25	25	•S 358 IS
26	26	SEC. 2. INCREASE IN THRESHOLD AMOUNTS FOR INCLU-1
27	27	SION OF SOCIAL SECURITY BENEFITS IN IN-2
28	28	COME. 3
29	29	(a) I
30	30	NGENERAL.—Subsection (a) of section 86 of the 4
31	31	Internal Revenue Code of 1986 is amended to read as fol-5
32	32	lows: 6
33	33	‘‘(a) I
34	34	NGENERAL.—Gross income for the taxable 7
35	35	year of any taxpayer described in subsection (b) (notwith-8
36	36	standing section 207 of the Social Security Act) includes 9
37	37	Social Security benefits in an amount equal to the lesser 10
38	38	of— 11
39	39	‘‘(1) 85 percent of the Social Security benefits 12
40	40	received during the taxable year, or 13
41	41	‘‘(2) 85 percent of the excess described in sub-14
42	42	section (b)(1).’’. 15
43	43	(b) B
44	44	ASEAMOUNT.—Subsection (c) of section 86 of 16
45	45	such Code is amended to read as follows: 17
46	46	‘‘(c) B
47	47	ASEAMOUNT.— 18
48	48	‘‘(1) I
49	49	N GENERAL.—For purposes of this sec-19
50	50	tion, the term ‘base amount’ means— 20
51	51	‘‘(A) except as otherwise provided in this 21
52	52	subsection, $34,000, 22
53	53	‘‘(B) $68,000 in the case of a joint return, 23
54	54	and 24
55	55	‘‘(C) zero in the case of a taxpayer who— 25
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58	58	•S 358 IS
59	59	‘‘(i) is married as of the close of the 1
60	60	taxable year (within the meaning of section 2
61	61	7703) but does not file a joint return for 3
62	62	such year, and 4
63	63	‘‘(ii) does not live apart from his 5
64	64	spouse at all times during the taxable year. 6
65	65	‘‘(2) I
66	66	NFLATION ADJUSTMENT .— 7
67	67	‘‘(A) I
68	68	N GENERAL.—In the case of any 8
69	69	taxable year beginning after 2025, each of the 9
70	70	dollar amounts in paragraph (1) shall be in-10
71	71	creased by an amount equal to— 11
72	72	‘‘(i) such dollar amount, multiplied by 12
73	73	‘‘(ii) the cost-of-living adjustment de-13
74	74	termined under section 1(f)(3) for the cal-14
75	75	endar year, determined by substituting 15
76	76	‘calendar year 2024’ for ‘calendar year 16
77	77	2016’ in subparagraph (A)(ii) thereof. 17
78	78	‘‘(B) R
79	79	OUNDING.—If any amount deter-18
80	80	mined under subparagraph (A) is not a multiple 19
81	81	of $1,000, such amount shall be rounded to the 20
82	82	nearest multiple of $1,000.’’. 21
83	83	(c) S
84	84	OCIALSECURITYTRUSTFUNDSHELDHARM-22
85	85	LESS.—There are hereby appropriated (out of any money 23
86	86	in the Treasury not otherwise appropriated) for each fiscal 24
87	87	year to each fund under the Social Security Act or the 25
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90	90	•S 358 IS
91	91	Railroad Retirement Act of 1974 an amount equal to the 1
92	92	reduction in the transfers to such fund for such fiscal year 2
93	93	by reason of the amendments made by this section. 3
94	94	(d) E
95	95	FFECTIVEDATE.—The amendments made by 4
96	96	this section shall apply to taxable years beginning after 5
97	97	December 31, 2025. 6
98	98	SEC. 3. REALLOCATING NON-SECURITY DISCRETIONARY 7
99	99	APPROPRIATIONS TO SUPPORT RETIREE TAX 8
100	100	RELIEF. 9
101	101	(a) R
102	102	ESCISSION.—Subject to subsection (c), for fiscal 10
103	103	year 2027, and each fiscal year thereafter, effective on the 11
104	104	day after the date on which appropriations are made avail-12
105	105	able through September 30 of the applicable fiscal year 13
106	106	for the entire Federal Government, there is rescinded an 14
107	107	amount equal to the total cost for such fiscal year, on a 15
108	108	pro rata basis, from amounts made available through reg-16
109	109	ular appropriation Acts. 17
110	110	(b) R
111	111	EGULARAPPROPRIATIONACT.—For purposes 18
112	112	of this section, the term ‘‘regular appropriation Act’’— 19
113	113	(1) means an annual appropriation Act (as de-20
114	114	scribed in section 105 of title 1, United States Code) 21
115	115	providing new budget authority (as defined in sec-22
116	116	tion 3 of the Congressional Budget and Impound-23
117	117	ment Control Act of 1974 (2 U.S.C. 622)) for the 24
118	118	programs, projects, and activities under the jurisdic-25
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121	121	•S 358 IS
122	122	tion of a subcommittee of the Committee on Appro-1
123	123	priations of the Senate; and 2
124	124	(2) includes— 3
125	125	(A) a title, division, or other subdivision of 4
126	126	an Act or resolution that, if it were a separate 5
127	127	Act, would be an Act described in paragraph 6
128	128	(1); and 7
129	129	(B) a resolution or Act, or a title, division, 8
130	130	or other subdivision of a resolution or Act, mak-9
131	131	ing continuing appropriations for all, or a por-10
132	132	tion of, a fiscal year. 11
133	133	(c) E
134	134	XCLUSION.—Subsection (a) shall not apply with 12
135	135	respect to any discretionary appropriations included in the 13
136	136	security category (as defined in Section 250(c) of the Bal-14
137	137	anced Budget and Emergency Deficit Control Act of 1985 15
138	138	(2 U.S.C. 900(c))). 16
139	139	(d) T
140	140	OTALCOST.—For purposes of this section, the 17
141	141	term ‘‘total cost’’ means, with respect to a fiscal year, an 18
142	142	amount (as determined by the Secretary of the Treasury) 19
143	143	equal to the total reduction in the transfers to each fund 20
144	144	under the Social Security Act or the Railroad Retirement 21
145	145	Act of 1974 for such fiscal year by reason of the amend-22
146	146	ments made by section 2(b) (as determined without re-23
147	147	spect to any appropriation made pursuant to section 2(c)). 24
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151	151	(e) OMB REPORT.—Not later than January 1, 2028, 1
152	152	and annually thereafter, the Director of the Office of Man-2
153	153	agement and Budget shall publish a report detailing any 3
154	154	rescissions made under this section with respect to the 4
155	155	most recently completed fiscal year. 5
156	156	Æ
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