Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
H.R. 2909, the You Earned It, You Keep It Act, would eliminate federal income taxes on Social Security benefits and cap Social Security payroll taxes at $250,000 in annual wages, with the Treasury reimbursing the Social Security trust funds for the lost revenue. The bill also extends the $250,000 cap to self-employment income and creates a refund mechanism for employees with multiple jobs who overpay Social Security taxes. Beginning in 2026, the legislation modifies the Social Security benefit formula to allow higher earners to receive slightly increased benefits based on wages above the $250,000 threshold, while protecting low-income beneficiaries from losing means-tested assistance. These changes primarily affect higher-income workers and Social Security beneficiaries, though the Treasury will need to cover the revenue losses to maintain the solvency of the Social Security trust funds.
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