Senator Ricketts’ Weekly Column: Helping President Trump Cut Your Taxes

Recently, President Trump re-committed to eliminating federal income taxes on Social Security benefits. He’s also promised to increase support for our veterans. I agree with President Trump. Social Security and veterans’ benefits should be completely tax-free. This week, I introduced two bills to help the President deliver on that agenda. My bills will help Americans keep more of their hard-earned money in retirement. 

I introduced the Social Security Check Tax Cut Act and the Tax Cuts for Veterans Act. These bills are built on the same common-sense approach we took in Nebraska. We worked across the aisle to cut taxes on Social Security and military retirement benefits at the state level. It’s time to do the same at the federal level. 

Social Security benefits shouldn’t be taxed. From 1935 until 1983, these benefits were not taxed. This recognized that workers already paid into Social Security via the payroll tax each pay period. In 1983, 50% of Social Security benefits became taxable. And in 1993, President Bill Clinton signed a bill into law making 85% of Social Security benefits taxable. This double tax needs to end.

My Social Security Check Tax Cut Act will start phasing out the federal tax on Social Security benefits. It begins with a 10% cut in year one and grows to 20% in year two. Congress can continue phasing out the tax by 10% per year and make Social Security income tax free by 2035. 

For a typical retiree, it would mean about $800 back in their pocket. That’s 202 gallons of milk or 270 gallons of gas at today’s prices. That’s real relief for seniors. 

This is a plan that works. We did it in Nebraska with LB873. We eliminated state taxes on Social Security benefits in a bipartisan, 100% unanimous vote. It wasn’t a Republican or Democrat solution. It was a Nebraska solution. Washington should follow Nebraska’s lead. 

I also introduced the Tax Cuts for Veterans Act. My bill ensures that military retirement pay is tax-free at the federal level. 

In 2021, I signed LB387 into law, eliminating state taxes on military retirement benefits in Nebraska. We did it with overwhelming bipartisan support. Not a single senator voted against it. That’s because it was the right thing to do. It was another Nebraska solution. We need to take that same approach in Washington. 

The Tax Cuts for Veterans Act would give real financial relief to those who served. Take an enlisted soldier, sailor, airman, or marine who serves for 20 years. Under my bill, they could save over $6,000 per year. That’s an extra $500 every single month. That’s real money to cover groceries, gas, housing, and other rising costs. 

As John F. Kennedy once said, “the highest appreciation is not to utter words, but to live by them.” Honoring our veterans isn’t just about words —it’s about action. We can and should eliminate federal taxes on military retirement benefits for veterans across the country.  

My bills are about fairness, common sense, and keeping promises to seniors and veterans. Seniors have paid into Social Security for decades. Veterans have given years of service to protect our freedoms. We should not be double taxing them. These bills will boost retirement income and ensure seniors and veterans keep more of their hard-earned money. 

We proved it in Nebraska. Washington needs to do the same. I’m proud to lead this effort, and I look forward to working with my colleagues to get this done. 

My team and I are here to serve you. Contact us anytime by phone at 202-224-4224. You can also view my website at www.ricketts.senate.gov/contact.