[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2266 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2266
To amend the Internal Revenue Code of 1986 to increase the threshold
amounts for inclusion of Social Security benefits in income.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 21, 2025
Ms. Malliotakis introduced the following bill; which was referred to
the Committee on Ways and Means, and in addition to the Committee on
Appropriations, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase the threshold
amounts for inclusion of Social Security benefits in income.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Reducing Excessive Taxation and
Inefficiencies by Reforming Elder Exemptions to Support Fairness,
Inflation Relief, and Simpler Taxes Act'' or the ``RETIREES FIRST
Act''.
SEC. 2. INCREASE IN THRESHOLD AMOUNTS FOR INCLUSION OF SOCIAL SECURITY
BENEFITS IN INCOME.
(a) In General.--Subsection (a) of section 86 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(a) In General.--Gross income for the taxable year of any
taxpayer described in subsection (b) (notwithstanding section 207 of
the Social Security Act) includes Social Security benefits in an amount
equal to the lesser of--
``(1) 85 percent of the Social Security benefits received
during the taxable year, or
``(2) 85 percent of the excess described in subsection
(b)(1).''.
(b) Base Amount.--Subsection (c) of section 86 of such Code is
amended to read as follows:
``(c) Base Amount.--
``(1) In general.--For purposes of this section, the term
`base amount' means--
``(A) except as otherwise provided in this
subsection, $34,000,
``(B) $68,000 in the case of a joint return, and
``(C) zero in the case of a taxpayer who--
``(i) is married as of the close of the
taxable year (within the meaning of section
7703) but does not file a joint return for such
year, and
``(ii) does not live apart from his spouse
at all times during the taxable year.
``(2) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2025, each of the dollar amounts in
paragraph (1) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2024' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any amount determined under
subparagraph (A) is not a multiple of $1,000, such
amount shall be rounded to the nearest multiple of
$1,000.''.
(c) Social Security Trust Funds Held Harmless.--There are hereby
appropriated (out of any money in the Treasury not otherwise
appropriated) for each fiscal year to each fund under the Social
Security Act or the Railroad Retirement Act of 1974 an amount equal to
the reduction in the transfers to such fund for such fiscal year by
reason of the amendments made by this section.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 3. REALLOCATING NON-SECURITY DISCRETIONARY APPROPRIATIONS TO
SUPPORT RETIREE TAX RELIEF.
(a) Rescission.--Subject to subsection (c), for fiscal year 2027,
and each fiscal year thereafter, effective on the day after the date on
which appropriations are made available through September 30 of the
applicable fiscal year for the entire Federal Government, there is
rescinded an amount equal to the total cost for such fiscal year, on a
pro rata basis, from amounts made available through regular
appropriation Acts.
(b) Regular Appropriation Act.--For purposes of this section, the
term ``regular appropriation Act''--
(1) means an annual appropriation Act (as described in
section 105 of title 1, United States Code) providing new
budget authority (as defined in section 3 of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 622)) for
the programs, projects, and activities under the jurisdiction
of a subcommittee of the Committee on Appropriations of the
Senate; and
(2) includes--
(A) a title, division, or other subdivision of an
Act or resolution that, if it were a separate Act,
would be an Act described in paragraph (1); and
(B) a resolution or Act, or a title, division, or
other subdivision of a resolution or Act, making
continuing appropriations for all, or a portion of, a
fiscal year.
(c) Exclusion.--Subsection (a) shall not apply with respect to any
discretionary appropriations included in the security category (as
defined in Section 250(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 900(c))).
(d) Total Cost.--For purposes of this section, the term ``total
cost'' means, with respect to a fiscal year, an amount (as determined
by the Secretary of the Treasury) equal to the total reduction in the
transfers to each fund under the Social Security Act or the Railroad
Retirement Act of 1974 for such fiscal year by reason of the amendments
made by section 2(b) (as determined without respect to any
appropriation made pursuant to section 2(c)).
(e) OMB Report.--Not later than January 1, 2028, and annually
thereafter, the Director of the Office of Management and Budget shall
publish a report detailing any rescissions made under this section with
respect to the most recently completed fiscal year.
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