Congressman Begich co-sponsors bill to remove federal income tax from Social Security benefits

By
Suzanne Downing
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64
Congressman Nick Begich III serves as Speaker Pro Temper o Feb. 4, 2025.

Former Rep. Mary Peltola ran a campaign against Nick Begich saying he would end Social Security. It was one of her biggest attacks on him.

Instead, Congressman Begich is trying to end the federal income tax on Social Security benefits.

The Senior Citizens Tax Elimination Act, H.R. 1040, would eliminate federal income taxation on Social Security benefits. The bill seeks to relieve middle-class seniors from what Congressman Begich describes as an “unjust double taxation” on their retirement income.

Peltola advocated for higher taxes on Social Security when she was in office. Begich favors lower taxes.

Peltola and Biden propose taxing middle class to expand Social Security

“After years of poor returns, the least we can do is make sure we end the practice of unjust double taxation on retirees. The money paid into social security belongs to those who paid into the system. As I made clear during the campaign, making sure that retiree programs like social security are protected from federal bureaucrats is a top priority,” Congressman Begich said.

According to the Congressional Research Service, prior to 1984, Social Security benefits were exempt from federal income taxation. However, subsequent legislation introduced a phased taxation system, wherein a portion of Social Security benefits became taxable as an individual’s income increased above a certain threshold.

The bill’s prime sponsor is Congressman Thomas Massie, a conservative Republican from Kentucky’s 4th Congressional District.

Congressman Massie recognized Begich joining as a co-sponsor: “Thank you to @RepNickBegich for cosponsoring H.R. 1040, the Senior Citizens Tax Elimination Act. This bill assists middle-class seniors by eliminating the unjust double-tax on Social Security benefits.”

Massie said that although seniors have already paid tax on their Social Security contributions via the payroll tax, they are still required to list these benefits as taxable income on their tax returns.

“This is simply a way for Congress to obtain more revenue for the federal government at the expense of seniors who have already paid into Social Security. My bill would exempt Social Security retirement benefits from taxation and boost the retirement income of millions of older Americans,” he said.

The proposed legislation has gained support from organizations like the Association of Mature American Citizens (AMAC) Action.

“Every year, millions of seniors become eligible for either Social Security or tier I railroad retirement benefits. After working for decades, paying taxes on their hard-earned income to fund these federal programs, some seniors are forced to pay income tax on the benefits they receive from the federal government. Taxing benefits which were created from already taxed funds is nonsensical and curtails retirement benefits seniors have been promised. Seniors deserve to reap the full benefits of their hard work from career-long contributions to Social Security and the Railroad Retirement Plan,” said Andy Mangione, Senior Vice President of AMAC Action.

Passed by Senate, Social Security Fairness Act sets up speed trap for Alaska Democrats’ defined benefits drivers

64 COMMENTS

  1. NB3 is clearly out-performing Daddy’s Little Princess, by a long-shot.
    He would make a great replacement to her, much more deserving!

    • Not at all surprising the author failed to mention which president introduced taxes on social security. None other than the patron saint Ronald Reagan. Reaction!!

      • Nice try. That was the Alan Greenspan/Tip Oneil combo that thought it would be a good idea to screw people harder with that BS and that included 50% of your social security into your adjusted gross if it was over $34000. Clinton managed to up that game in 1993 when they raised it to 85% subject to taxation at $34000 gross. Nice try.

        • Thank you for this reminder in correction. There have been many Congressional bills that were passed during the Republican presidential years that many Republicans DID NOT vote for nor approved of being passed. Don’t blame the President in office of that time, when the Democrats in Congress over voted and/or RINO Republicans joined the Democrats to pass a bill.

      • President Ronald Reagan was not perfect and if what you are saying is true, made a mistake (in my opinion). Thank goodness we have President Donald J. Trump to correct President Reagan’s mistake! Now …. let’s here from any libs about any “mistakes” Obama or Biden made.

      • HR 1900 Social Security Amendments of 1983 was sponsored by Rep. Rostenkowski, Dan (D-IL) and co-sponsored by Rep. Conable, Barber B., Jr. (R-NY) and Rep. Pickle, J. J. (D-TX). It passed 282 – 148 the House in March 1983 and the 88-9 in the Senate a few weeks later. Patron saint Ronald Reagan later signed the bill into law, originally it impacted about 5% of eligible SS recipients and now after numerous changes over the years it impacts about 50%. But I’m guessing you already knew that.

  4. Not that it really matters, but where did Mary Peltola end up? Is she shacked up with Jeffries in DC, or did she finally find another boyfriend and move to NYC to be closer to Sarah Palin? One thing for sure, she ain’t moving back to Bethel.

  5. What chance does this legislation have? Now we find out of Republicans will stab us in the back. Rs control the House, the Senate, and the White House. If we can’t see common sense legislation like this passed, then we know who is really on our side.

    • Of course they will stab you in the back, didn’t MRAK just tell us that the Republicans started taxing SS benefits in 1884, signed into law by Ronald Reagan? Reagan’s opponent in1984 gave an honest answer when asked about America’s prosperity under Reagan. Dukakis replied, “Let me write hundreds of millions of dollars in bad checks each year and I will show you prosperity.”

      So, I paid into SS for over 50 years, and they tax my meager returns, which are far below the stock market returns for that 50 years. Then Alaska gives our oil away for pennies on the dollar and watches us argue over the pennies. All politicians are crooks, regardless of Nixon’s protest to the contrary.

      • HR 1900 Social Security Amendments of 1983 was sponsored by Rep. Rostenkowski, Dan (D-IL) and co-sponsored by Rep. Conable, Barber B., Jr. (R-NY) and Rep. Pickle, J. J. (D-TX). It passed 282 – 148 the House in March 1983 and the 88-9 in the Senate a few weeks later. Patron saint Ronald Reagan later signed the bill into law, originally it impacted about 5% of eligible SS recipients and now after numerous changes over the years it impacts about 50%. But I’m guessing you already knew that.

      • Yeah…
        Reagan F’ed up on that.
        Anyone with an IQ over 50 can admit it.
        .
        And… why didn’t you invest outside of SS? Relying on the government for anything is a fools errand.

  6. Does the upper income, rretirement crowd need to be bought off to help garentee that Begich is not a one term rep? I don’t think so. Nick Begich how about you focus on reducing spending and regulations first.

    • I don’t know why you would say that this bill will just “buy off the upper income retirement crowd.” Every Alaskan on Social Security income will clearly benefit from this change!
      Those at the lower income end will benefit even more, because those extra dollars will go farther towards paying utility bills and basic necessities. That will make their lives more enjoyable and less stressful. Everyone wins, here.

      • Average American net worth varies by age group:
        35 and under: $183,500
        35-44: $135,600
        45-54: $247,200
        55-64: $364,500
        65-74: $409,900

        Do you really think that all of the 65+ folks shouldn’t pay taxes on their Social Security? We, on aggregate, this includes me, are the folks that sequentially voted for a 36 Trillion Deficit. I personally didn’t vote that way but I was outnumbered by most liberals and many misguided conservatives. Even though I didn’t personally create the debt, I am in the 65+ age group and find it immoral to be part of a system that runs up the debt and stiffs the next generation to pay for our party.

        • “Average net worth” now there is a BS preposition to base an argument on that I should be taxed on the money they took out of my checks, and are STILL taking because there is no retiring in my future. So you propose the people over 64 sell their house and go live in a bucket because you feel bad the DC elite broke the credit card. If they want to quit sucking the 15% out of me they are getting now, they can keep what they already stole. Otherwise, keep them checks coming so I can take a vacation a year.

            • Net worth is far from expendable income. Most Seniors have paid off mortgages so they can live without the worry of a house payment. So you are advocating for them to give up their home just to not be taxed on SS that they spent their whole lives giving into only to be screwed by big government.

      • Wildly: Actually, the dollars of lower income will not go further, given how financial transactions work but the fewer dollars held by those with less are likely more valuable, if that’s your point.
        I think I get your drift and concur.

  7. If Nick can stay clear of repub party establishment, much like the Man, the Myth, the Legend that is Thomas Massie, Nick will do Alaska favorably.

  10. Definitely a winner right out of the gate, Nick is. I am not surprised at all that he got onboard this train to end Social Security taxes … Trump campaigned on it and it’s happening baby!!!
    Alaska has a majority of old-timers on SS, so this will help tremendously … I might be able to ween myself off that bargain-brand cat-food after all … 🙂

  11. Taxes on social security have baffled me since hearing my grandparents talk about it. How can something that a US citizen has paid into for 40 or 50 years, and then only receive a fraction back, be subject to taxes. Sounds like a (D)emocrat scam. The Nickster is on target with this one.

    • For sure.
      And I think it’s a scam of any elected lifer. Term limits are good, but keep some of these better guys in for a while. At least be like Trump and work every week like it’s your last.

          • Before you advocate for a Flat Tax take a look at any deductions you currently have and it may surprise you that a flat tax would not benefit you or it might. Except for the years since the 2017 Tax cut was enacted it would benefit me to be able to use my interest on a mortgage to lower my tax bracket and with a Flat Tax with no deductions my payment in taxes would have been more. So it may just be a devils advocate to call for a Flat Tax.

    • Rollo, sit down and add up (roughly) the amount you paid into social security, then divide that by your monthly benefit. You are (or will be) receiving WAY more than you paid in. Not to say that I won’t too when I get there. I’m just pointing out that Social Security is basically a pyramid scheme that is financially unsustainable in the first place.

      • I’ve been paying in since 1976. I won’t be able to collect for several more years at the earliest. I will get more than I paid in? Not a chance.

  12. Good on Congressman Begich.
    We need to provide a companion bill in Alaska to recognize our of age seniors who are financially challenged and being taxed unnecessarily with property taxes based on assessed values rather than the value of the residence upon original purchase. We have many senior Alaskans who have given much for our state to now have diminished funds and threatened with property seizure due to the inability to pay projected assessed value property tax on their fully owned residence.
    What Alaska legislator will take the charge to submit such a bill and which other legislators will make sure it passes?

  13. Being Republican at one time was about less regulation, free markets, less Federal control and a balanced budget. MAGA has devolved the Party into focusing on special interests and reckless promises that mortgage the future. At one time any tax decreases had to be balanced, so the only way to balance gthis loss in revenue is to reduce the payout like is done with Medicare Part B.

    • Frank, I remember when Democrat leaders were Americans and not corrupt commies.

      I recall when Democrats actually had scrupples and were not hell bent on passing ridiculous bills that handed Billions of $ to NGO’s headed up by their political pals.

      Frank, seek help for your TDS.

  14. Thank you, Congressman Begich.

    I knew we could count on you to help senior citizens who who have earned social security benefits and who struggle to make ends meet in Alaska. You are a superstar! I am glad I voted for you and against her.

  16. Since my teen years in the late 70s and early 80s, I recognized Socialist Insecurity as a classic Ponzi scheme and New Deal boondoggle from which I would likely collect little or nothing, and even though I am now near the age to qualify for Socialist Insecurity benefits, I still expect, in the end, to collect little or nothing from it.

  18. That’s great so far. Now introduce a bill that stops the feral government from stealing from Social Security to fund unwanted crap they’d never be able to get funding for through honest and Constitutional means.

  21. Actually, since the employer matched the tax, it was 50% funded by the individual. If it were an employer funded private benefit, like short or long term disability, the 50% paid by the employer would be taxable. So I’m not sure how this works other than a gift on the untaxed 50%. But I do like the concept to eliminate double taxation (and all federal taxation) which happens in far more ways than one can imagine.

    • You may be right on employers match on Social Security but that was still our money my money and my account number. That was my benefit for working all my life .Every body had the same chance to do so. So any way the government looks at it , it’s my money and they need to give it all to me without double taxing it. And I’m sure the employer got some kind of tax break for all the money they were out on each employee .

  22. How about doing something really useful regarding social security? Cash it out for all of us that have had this money stolen from us and then end it. Social Security is a socialist Ponzi scheme and needs to be abolished.

  23. The bill should have been passed 25 years ago to eliminate double tax on Social Security. Full retirement aged people have paid their money in , and now collecting it in the end. Should be able to continue to work along with it. It’s ours , just like a bank account . So why are we being double taxed on our money. And why are we still having Social Security still being withdrawn from our income now?? I no longer have an account I’m paying in to. My Social Security will never increase. So that should stop as well .

  24. After Nick gets this bill passed, I hope he’ll get to work righting the wrong of inheritance taxes, another injustice.

    Keep up the good work Nick!

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