119th (2025–2027)
S. 5084
This bill would apply automatic inflation adjustments to the tax thresholds used to determine how much of Social Security benefits are subject to federal income tax. Currently, these dollar amount thresholds remain fixed, meaning more retirees pay taxes on their benefits as inflation erodes the real value of the thresholds. The legislation would adjust these thresholds annually starting in 2027 based on the cost-of-living index, similar to how Social Security benefits themselves are adjusted for inflation. This change would affect millions of Social Security recipients, particularly those with moderate incomes who receive partial taxation of their benefits. The bill does not include direct spending or new funding mechanisms, as it operates through the existing tax code structure.