Bill 119 HR 904, also known as the Social Security Fairness Act, aims to amend the Internal Revenue Code of 1986 by repealing the requirement to include Social Security benefits in gross income. This bill seeks to provide relief to individuals who receive Social Security benefits by eliminating the tax burden on these payments.
Currently, Social Security benefits are subject to federal income tax if an individual's income exceeds a certain threshold. This can result in a portion of the benefits being taxed, reducing the overall amount received by the beneficiary. The Social Security Fairness Act seeks to address this issue by removing the requirement to include these benefits in gross income, effectively exempting them from federal taxation.
Supporters of the bill argue that taxing Social Security benefits places an undue burden on retirees and individuals with disabilities who rely on these payments as a significant source of income. By repealing the inclusion of Social Security benefits in gross income, this legislation aims to provide financial relief to those who depend on these benefits for their livelihood.
Opponents of the bill may argue that removing the tax on Social Security benefits could result in a loss of revenue for the federal government, potentially impacting funding for other programs. However, proponents of the Social Security Fairness Act believe that the benefits of providing relief to individuals who rely on Social Security outweigh any potential revenue implications.
Overall, Bill 119 HR 904 seeks to alleviate the tax burden on Social Security beneficiaries by repealing the inclusion of these benefits in gross income. This legislation aims to provide financial relief to individuals who depend on Social Security as a vital source of income, without imposing additional tax obligations on these payments.