The resolution urges the President and Congress to exempt Social Security benefits from federal income tax, highlighting the historical context and importance of these benefits for the elderly and other eligible recipients. Established in 1935, the Social Security Act aimed to provide financial assistance to the nation's elderly population, and over the years, the program has expanded to include benefits for disabled workers, survivors, and dependents. 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 points out that while many states, including New Jersey, do not tax Social Security benefits at the state level, the federal taxation undermines the financial security of those who rely on these payments. It emphasizes that exempting Social Security benefits from federal income tax would provide much-needed relief to vulnerable populations, allowing them to retain more of their income. The resolution also references proposed federal legislation, H.R. 9359, The Social Security Tax Freedom Act, which seeks to eliminate the taxation of these benefits, thereby advocating for greater financial support for hardworking Americans who depend on Social Security.