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HR 2909119th CongressIntroduced
You Earned It, You Keep It Act
Introduced: Oct 29, 2025
Economy & TaxesLabor & EmploymentSocial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
This legislation repeals federal taxation of Social Security benefits, eliminates the payroll tax cap for earnings above $250,000, modifies the Social Security benefit formula to include higher earnings, and implements trust fund protections through appropriations while safeguarding means-tested program eligibility for vulnerable populations.
Key Points
- 1The bill completely removes Social Security benefits from gross income calculations by repealing Section 86 of the Internal Revenue Code, ending federal taxation of these benefits for all recipients.
- 2It subjects wages and self-employment income exceeding $250,000 to Social Security payroll taxes, eliminating the current taxable maximum cap for high-income earners starting in 2026.
- 3The legislation increases Social Security benefits for high earners by introducing a 2% replacement rate for earnings above $250,000 in the primary insurance amount calculation formula.
Impact Areas
Social Security beneficiaries, especially high-income retireesWorkers earning over $250,000 and their employersSocial Security Trust Funds and federal budget revenuesRecipients of SSI, Medicaid, and CHIP programs
Generated by legislative-analysis-specialist on Nov 4, 2025