WASHINGTON, D.C. – Today, U.S. Senators Marsha Blackburn (R-Tenn.) and Roger Marshall (R-Kan.) introduced the Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simpler Taxes (RETIREES FIRST) Act to lower the tax burden on Social Security benefits for seniors. 

“Retirees across the country depend on Social Security, especially after enduring the record-high inflation of the last four years,” said Senator Blackburn. “This bill would cut taxes on seniors’ benefits, helping them keep more of their hard-earned money.”

“President Trump promised to protect Social Security and deliver relief to senior citizens by cutting taxes on these benefits. This simple action will put more money in seniors' pockets, correct a fundamental flaw in our tax system, and support President Trump’s economic agenda and a promise made to the American people: No Tax on Social Security,” said Senator Marshall.

• Historically, Social Security benefits were entirely exempt from the federal income tax, reflecting the understanding that these benefits were funded by workers’ own earnings.

• In 1983, Congress passed legislation that taxed benefits for higher-income retirees to strengthen program solvency. However, the measure was only intended to impact a small portion of households. 

• Current exemption thresholds—$25,000 for single filers and $32,000 for married filers—have not been adjusted for inflation since their creation, causing “bracket creep” that increasingly taxes middle-income retirees.

• Today, nearly 56% of retirees pay taxes on their Social Security benefits, compared to less than 10% in 1984, with this figure projected to rise further.

• Many retirees rely on Social Security as their primary source of income, but the added tax burden reduces their quality of life, especially as inflation erodes the value of their benefits.

This RETIREES FIRST Act would:

• Eliminate Taxes on Benefits for Most Retirees: Raise the provisional income threshold to $34,000 for single filers and $68,000 for married filers, exempting most middle-class retirees from paying taxes on their Social Security benefits.

• Keep Exemptions Aligned with Rising Costs: Ensure the new thresholds are updated annually to prevent bracket creep, preserving the value of exemptions and shielding retirees from inflation’s impact.

• Simplify Tax Rules and Eliminate the Marriage Penalty: Maintain a single 85% inclusion rate for benefits exceeding the new thresholds, simplifying the filing process and reducing confusion for seniors. Additionally, the bill would eliminate the substantial tax penalty currently imposed on married retirees who both receive benefits. 

• Protect Long-Term Solvency by Cutting Bureaucratic Waste: Redirect funds from inefficient government spending in the non-defense, non-veterans, non-homeland security discretionary appropriations accounts to offset revenue reductions, safeguarding the Social Security and Medicare trust funds while prioritizing retirees.

Click here for bill text.