The resolution urges the President and Congress to exempt Social Security benefits from federal income tax, highlighting the historical context and current implications of such taxation. Established in 1935, the Social Security Act aimed to support the elderly population through a federal social insurance system, with benefits now extending to various groups, including disabled workers and survivors. Currently, nearly 90% of individuals aged 65 and older receive Social Security benefits, which constitute about 30% of their total income. However, since 1984, these benefits have been subject to federal income tax, with thresholds that have not been adjusted for inflation, placing an additional financial burden on recipients.

The resolution emphasizes that the taxation of Social Security benefits undermines the financial security of many Americans who rely on these payments, particularly as a significant portion of the workforce lacks access to private pension plans. It points out that while 41 states and the District of Columbia do not tax Social Security benefits at the state level, the federal government continues to impose taxes that diminish the value of these essential payments. The resolution calls for legislative action, specifically referencing H.R. 9359, The Social Security Tax Freedom Act, which seeks to eliminate federal income tax on Social Security benefits, thereby providing much-needed relief to beneficiaries.