Committed to protecting seniors' earned benefits and strengthening Social Security, today Congressman Charlie Crist (D-St. Petersburg) introduced his first bill in Congress, providing tax relief to nearly 80 percent of seniors while increasing the solvency of the Social Security Trust Fund.
The Save Social Security Act eliminates taxes on Social Security benefits for those making less than $100,000 a year and 'scraps the cap' on taxable income paid into Social Security for anyone earning more than $300,000, a fairer system that will extend the life of the program.
"I came to Congress to fight for the over 170,000 Pinellas seniors I am honored to represent. I'm proud to deliver a bill honoring that promise, protecting the Social Security benefits they depend on and eliminating the double taxation impacting 80 percent of American seniors," said Crist. "This legislation is fully paid for several times over. By asking the top two percent to pay their fair share into Social Security – the same that is asked of middle class families – we put the program on a solid fiscal foundation for future generations. Providing a tax cut to middle class seniors while increasing the sustainability of Social Security is something everyone in Congress can – and should – agree on."
Key Features of the Save Social Security Act:
Tax Cut for Middle Class Seniors
Increases the threshold for taxation of Social Security benefits to $100,000, after which, 85% of benefits would be subject to taxation, as per current law.
Currently, seniors in the lowest 25 percent of the income tax bracket are not taxed. This bill would eliminate taxation for the middle 50 percent of the tax bracket, leaving in place taxation for only the top 25 percent of seniors.
'Scrap the Cap'
Applies the payroll tax to income above $300,000 per year. If an individual reaches $300,000 in annual income, they will begin paying into the program just as they do on their first $127,200 in income.
This would extend the life of the Social Security Trust Fund, currently solvent for the next 17 years, for at least another 20 years, to 2054.
Scrapping the cap brings in more revenue than is spent on the tax cut.