II 

118TH CONGRESS 

2D SESSION S. 5603 

To amend the Internal Revenue Code of 1986 to increase the threshold 

amounts for inclusion of Social Security benefits in income, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 19 (legislative day, DECEMBER 16), 2024 

Mrs. BLACKBURN (for herself and Mr. MARSHALL) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

the threshold amounts for inclusion of Social Security 

benefits in income, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Reducing Excessive 

5 Taxation and Inefficiencies by Reforming Elder Exemp6 tions to Support Fairness, Inflation Relief, and Simpler 

7 Taxes Act’’ or the ‘‘RETIREES FIRST Act’’. 


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•S 5603 IS

1 SEC. 2. INCREASE IN THRESHOLD AMOUNTS FOR INCLU2 SION OF SOCIAL SECURITY BENEFITS IN IN3 COME. 

4 (a) IN GENERAL.—Subsection (a) of section 86 of the 

5 Internal Revenue Code of 1986 is amended to read as fol6 lows: 

7 ‘‘(a) IN GENERAL.—Gross income for the taxable 

8 year of any taxpayer described in subsection (b) (notwith9 standing section 207 of the Social Security Act) includes 

10 Social Security benefits in an amount equal to the lesser 

11 of— 

12 ‘‘(1) 85 percent of the Social Security benefits 

13 received during the taxable year, or 

14 ‘‘(2) 85 percent of the excess described in sub15 section (b)(1).’’. 

16 (b) BASE AMOUNT.—Subsection (c) of section 86 of 

17 such Code is amended to read as follows: 

18 ‘‘(c) BASE AMOUNT.— 

19 ‘‘(1) IN GENERAL.—For purposes of this sec20 tion, the term ‘base amount’ means— 

21 ‘‘(A) except as otherwise provided in this 

22 subsection, $34,000, 

23 ‘‘(B) $68,000 in the case of a joint return, 

24 and 

25 ‘‘(C) zero in the case of a taxpayer who— 


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•S 5603 IS

1 ‘‘(i) is married as of the close of the 

2 taxable year (within the meaning of section 

3 7703) but does not file a joint return for 

4 such year, and 

5 ‘‘(ii) does not live apart from his 

6 spouse at all times during the taxable year. 

7 ‘‘(2) INFLATION ADJUSTMENT.— 

8 ‘‘(A) IN GENERAL.—In the case of any 

9 taxable year beginning after 2024, each of the 

10 dollar amounts in paragraph (1) shall be in11 creased by an amount equal to— 

12 ‘‘(i) such dollar amount, multiplied by 

13 ‘‘(ii) the cost-of-living adjustment de14 termined under section 1(f)(3) for the cal15 endar year, determined by substituting 

16 ‘calendar year 2023’ for ‘calendar year 

17 2016’ in subparagraph (A)(ii) thereof. 

18 ‘‘(B) ROUNDING.—If any amount deter19 mined under subparagraph (A) is not a multiple 

20 of $1,000, such amount shall be rounded to the 

21 nearest multiple of $1,000.’’. 

22 (c) SOCIAL SECURITY TRUST FUNDS HELD HARM23 LESS.—There are hereby appropriated (out of any money 

24 in the Treasury not otherwise appropriated) for each fiscal 

25 year to each fund under the Social Security Act or the 


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1 Railroad Retirement Act of 1974 an amount equal to the 

2 reduction in the transfers to such fund for such fiscal year 

3 by reason of the amendments made by this section. 

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2024. 

7 SEC. 3. REALLOCATING NON-SECURITY DISCRETIONARY 

8 APPROPRIATIONS TO SUPPORT RETIREE TAX 

9 RELIEF. 

10 (a) RESCISSION.—Subject to subsection (c), for fiscal 

11 year 2026, and each fiscal year thereafter, effective on the 

12 day after the date on which appropriations are made avail13 able through September 30 of the applicable fiscal year 

14 for the entire Federal Government, there is rescinded an 

15 amount equal to the total cost for such fiscal year, on a 

16 pro rata basis, from amounts made available through reg17 ular appropriation Acts. 

18 (b) REGULAR APPROPRIATION ACT.—For purposes 

19 of this section, the term ‘‘regular appropriation Act’’— 

20 (1) means an annual appropriation Act (as de21 scribed in section 105 of title 1, United States Code) 

22 providing new budget authority (as defined in sec23 tion 3 of the Congressional Budget and Impound24 ment Control Act of 1974 (2 U.S.C. 622)) for the 

25 programs, projects, and activities under the jurisdicVerDate Sep 11 2014 17:40 Jan 25, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S5603.IS S5603

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1 tion of a subcommittee of the Committee on Appro2 priations of the Senate; and 

3 (2) includes— 

4 (A) a title, division, or other subdivision of 

5 an Act or resolution that, if it were a separate 

6 Act, would be an Act described in paragraph 

7 (1); and 

8 (B) a resolution or Act, or a title, division, 

9 or other subdivision of a resolution or Act, mak10 ing continuing appropriations for all, or a por11 tion of, a fiscal year. 

12 (c) EXCLUSION.—Subsection (a) shall not apply with 

13 respect to any discretionary appropriations included in the 

14 security category (as defined in Section 250(c) of the Bal15 anced Budget and Emergency Deficit Control Act of 1985 

16 (2 U.S.C. 900(c))). 

17 (d) TOTAL COST.—For purposes of this section, the 

18 term ‘‘total cost’’ means, with respect to a fiscal year, an 

19 amount (as determined by the Secretary of the Treasury) 

20 equal to the total reduction in the transfers to each fund 

21 under the Social Security Act or the Railroad Retirement 

22 Act of 1974 for such fiscal year by reason of the amend23 ments made by section 2(b) (as determined without re24 spect to any appropriation made pursuant to section 2(c)). 


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1 (e) OMB REPORT.—Not later than January 1, 2027, 

2 and annually thereafter, the Director of the Office of Man3 agement and Budget shall publish a report detailing any 

4 rescissions made under this section with respect to the 

5 most recently completed fiscal year. 

Æ 


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