Ricketts Welcomes Trump’s Support for Cutting Taxes on Social Security Benefits

July 31, 2024

WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE), who last year introduced legislation to end federal taxes on Social Security benefits, issued the following statement after former President Donald Trump called for the elimination of these taxes:

“I couldn’t agree more with President Trump that our seniors shouldn’t be taxed on Social Security. That’s why I introduced the Social Security Check Tax Cut Act to end federal taxes on Social Security. We did it in Nebraska when I was Governor. Washington should do the same!”

BACKGROUND:

Ricketts’ Social Security Check Tax Cut Act begins a total phase out of federal taxes on Social Security benefits. The bill was modeled after a successful effort to eliminate state taxes on Social Security benefits initiated when Ricketts was Governor of Nebraska.

As Governor in 2022, Ricketts signed LB873 into law to phase in the elimination of state taxes on Social Security benefits over a period of years. The Social Security Check Tax Cut Act would similarly phase out federal taxes on Social Security benefits, beginning with a 10% cut in year one and increasing to 20% in year two. Congress can continue phasing out the tax by 10% a year and make all Social Security income tax free by 2033.

From its creation in 1935, Social Security has been the backbone of most Americans’ retirement plans. According to the Social Security Administration, nearly nine out of ten people aged 65 and older received a Social Security benefit as of June 30 of this year. From 1935 until 1983, Social Security benefits were untaxed, recognizing that workers already paid into Social Security via the payroll tax each pay period. In 1983, 50% of Social Security benefits became taxable. In 1993, President Bill Clinton signed a bill into law making 85% of benefits taxable.

Bill text can be found here.