Tuberville legislation would eliminate Reagan-era tax on Social Security

WASHINGTON – In a move to erase a law signed by former President Ronald Reagan, U.S. Sens. Tommy Tuberville and Tim Sheehy (R-Mont.) introduced the “Senior Citizens Tax Elimination Act” to stop the unjust double tax on Social Security benefits.

Tuberville (R-Auburn) serves on the Senate Committee on Aging.

“Seniors work the majority of their adult lives so that they can spend their retirement comfortably,” said Tuberville. “In a day and age where the cost of living has skyrocketed, our seniors should not experience a second tax on their Social Security, when they’ve already paid income tax on their paychecks.

“As Alabama’s voice on the Senate Aging Committee, I’ll continue to fight for our seniors to enjoy their hard-earned Social Security benefits.”

Before 1984, Social Security benefits were exempt from the federal income tax. Reagan signed legislation to tax a portion of those benefits, with the share gradually increasing as a person’s income rose above a specified income threshold.

The “Senior Citizens Tax Elimination Act” would amend the Internal Revenue Code of 1986 to terminate the inclusion of tier I railroad retirement benefits and Social Security benefits in an individual’s gross income. As this legislation takes effect, seniors will notice their tax liability is significantly reduced and will no longer deal with the “double tax” on their federally earned benefits.

U.S. Rep. Thomas Massie (R-Ky.) has introduced companion legislation in the House.

“Although seniors have already paid tax on their Social Security contributions via the payroll tax, they are still required to list these benefits as taxable income on their tax returns,” said Massie. “This is simply a way for Congress to obtain more revenue for the federal government at the expense of seniors who have already paid into Social Security.

“My bill would exempt Social Security retirement benefits from taxation and boost the retirement income of millions of older Americans.”