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House Passes Social Security Tax Repeal

Thu, 08/03/2000 - 12:00am — Karen Stevenson
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The House passed HR 4865, the Social Security Benefits Tax Relief Act of 2000, by 265-159 votes. This bill would repeal the current tax on Social Security benefits for higher income beneficiaries. Currently, individuals with annual incomes between $25,000 and $34,000 and couples with incomes between $32,000 and $44,000 pay taxes on up to 50% of their Social Security benefits, and individuals with incomes over $34,000 and couples with incomes over $44,000 also pay a "second tier" tax on up to 85% of their Social Security benefits. HR 4865 would repeal that second tier tax.

The White House does not like this proposal, and President Clinton has vowed to veto it if it should come across his desk.

The House passed HR 4865, the Social Security Benefits Tax Relief Act of 2000, by 265-159 votes. This bill would repeal the current tax on Social Security benefits for higher income beneficiaries. Currently, individuals with annual incomes between $25,000 and $34,000 and couples with incomes between $32,000 and $44,000 pay taxes on up to 50% of their Social Security benefits, and individuals with incomes over $34,000 and couples with incomes over $44,000 also pay a "second tier" tax on up to 85% of their Social Security benefits. HR 4865 would repeal that second tier tax.

The White House does not like this proposal, and President Clinton has vowed to veto it if it should come across his desk.