I 

118TH CONGRESS 

2D SESSION H. R. 7084 

To amend the Internal Revenue Code of 1986 to repeal the inclusion in 

gross income of social security benefits, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 25, 2024 

Ms. CRAIG (for herself, Mr. KHANNA, Ms. CARAVEO, Mr. DAVIS of North 

Carolina, Mrs. PELTOLA, Ms. SALINAS, and Ms. SCHOLTEN) introduced 

the following bill; which was referred to the Committee on Ways and 

Means, and in addition to the Committee on Energy and Commerce, for 

a period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

the inclusion in gross income of social security benefits, 

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 ‘‘You Earned It, You 

5 Keep It Act’’. 


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1 SEC. 2. REPEAL OF INCLUSION IN GROSS INCOME OF SO2 CIAL SECURITY BENEFITS. 

3 (a) IN GENERAL.—Section 86 of the Internal Rev4 enue Code of 1986 (relating to social security benefits) 

5 is amended by adding at the end the following new sub6 section: 

7 ‘‘(g) TERMINATION.—This section shall not apply to 

8 any taxable year beginning after the date of the enactment 

9 of this subsection.’’. 

10 (b) SOCIAL SECURITY TRUST FUNDS HELD HARM11 LESS.—There are hereby appropriated (out of any money 

12 in the Treasury not otherwise appropriated) for each fiscal 

13 year to each fund under the Social Security Act (including 

14 the Federal Hospital Insurance Trust Fund) or the Rail15 road Retirement Act of 1974 an amount equal to the re16 duction in the transfers to such fund for such fiscal year 

17 by reason of section 86(g) of the Internal Revenue Code 

18 of 1986. 

19 SEC. 3. DETERMINING WAGES AND SELF-EMPLOYMENT IN20 COME ABOVE CONTRIBUTION AND BENEFIT 

21 BASE AFTER 2024. 

22 (a) DETERMINATION OF WAGES ABOVE CONTRIBU23 TION AND BENEFIT BASE AFTER 2024.— 

24 (1) AMENDMENTS TO THE INTERNAL REVENUE

25 CODE OF 1986.— 


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1 (A) REPEAL OF PRESENT LAW LIMITA2 TION.—Section 3121(a) of the Internal Revenue 

3 Code of 1986 is amended by striking paragraph 

4 (1). 

5 (B) LIMITATION ON AMOUNT OF WAGES.— 

6 Section 3121 of the Internal Revenue Code of 

7 1986 is amended by adding at the end the fol8 lowing: 

9 ‘‘(aa) LIMITATION ON AMOUNT OF WAGES.— 

10 ‘‘(1) IN GENERAL.—In the case of any calendar 

11 year in which the contribution and benefit base (as 

12 determined under section 230 of the Social Security 

13 Act) is less than $250,000, for purposes of the taxes 

14 imposed by sections 3101(a) and 3111(a), the term 

15 ‘wages’ does not include that part of the remunera16 tion which, after remuneration equal to such con17 tribution and benefit base with respect to employ18 ment has been paid to an individual by an employer 

19 during the calendar year with respect to which such 

20 contribution and benefit base is effective, is paid to 

21 such individual by such employer during the cal22 endar year. The preceding sentence shall not apply 

23 to that part of the remuneration paid to an indi24 vidual after remuneration of $250,000 with respect 

25 to employment has been paid to such individual by 


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1 an employer (or any person related to, or acting on 

2 behalf of, such employer, as determined by the Sec3 retary) during the calendar year. 

4 ‘‘(2) SUCCESSOR EMPLOYER.—If an employer 

5 (hereinafter referred to as successor employer) dur6 ing any calendar year, acquires substantially all the 

7 property used in a trade or business of another em8 ployer (hereinafter referred to as a predecessor), or 

9 used in a separate unit of a trade or business of a 

10 predecessor, and immediately after the acquisition 

11 employs in his trade or business an individual who 

12 immediately prior to the acquisition was employed in 

13 the trade or business of such predecessor, then, for 

14 the purpose of determining whether the successor 

15 employer has paid remuneration with respect to em16 ployment equal to the contribution and benefit base 

17 (as determined under section 230 of the Social Secu18 rity Act) to such individual during such calendar 

19 year, any remuneration with respect to employment 

20 paid (or considered under this paragraph as having 

21 been paid) to such individual by such predecessor 

22 during such calendar year and prior to such acquisi23 tion shall be considered as having been paid by such 

24 successor employer. 


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1 ‘‘(3) REMUNERATION.—For purposes of this 

2 subsection, the term ‘remuneration’ does not include 

3 remuneration referred to in any paragraph of sub4 section (a).’’. 

5 (C) APPLICATION TO RAILROAD RETIRE6 MENT.— 

7 (i) IN GENERAL.—Section 

8 3231(e)(2)(A) of the Internal Revenue 

9 Code of 1986 is amended by adding at the 

10 end the following new clause: 

11 ‘‘(iv) LIMITATION ON EXCLUSION.— 

12 For purposes of so much of the taxes im13 posed by sections 3201(a), 3211(a), and 

14 3221(a) as are determined by reference to 

15 the rate in effect under section 3101(a) or 

16 3111(a)— 

17 ‘‘(I) in the case of any calendar 

18 year in which the contribution and 

19 benefit base (as determined under sec20 tion 230 of the Social Security Act) is 

21 less than $250,000, clause (i) shall 

22 not apply to that part of the remu23 neration paid to an individual after 

24 remuneration of $250,000 for services 

25 rendered as an employee has been 


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1 paid to such individual by an em2 ployer (or any person related to, or 

3 acting on behalf of, such employer, as 

4 determined by the Secretary) during 

5 the calendar year, and 

6 ‘‘(II) in the case of any calendar 

7 year in which such contribution and 

8 benefit base equals or exceeds 

9 $250,000, clause (i) shall not apply.’’. 

10 (ii) EXCLUSION OF REMUNERATION

11 WHICH IS NOT TREATED AS COMPENSA12 TION.—Section 3231(e)(2)(A)(ii) of the In13 ternal Revenue Code of 1986 is amended 

14 by inserting ‘‘or (iv)’’ after ‘‘under clause 

15 (i)’’. 

16 (D) CONFORMING AMENDMENT.—Section 

17 3231(e)(2)(C) of the Internal Revenue Code of 

18 1986 is amended by striking ‘‘the second sen19 tence of section 3121(a)(1)’’ and inserting ‘‘sec20 tion 3121(aa)(2)’’. 

21 (2) AMENDMENT TO THE SOCIAL SECURITY

22 ACT.—Section 209(a)(1)(I) of the Social Security 

23 Act (42 U.S.C. 409(a)(1)(I)) is amended by insert24 ing before the semicolon at the end the following: 

25 ‘‘except that this subparagraph shall apply only to 


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1 calendar years for which the contribution and ben2 efit base (as so determined) is less than $250,000, 

3 and, for such calendar years, only to the extent that 

4 remuneration with respect to employment paid to 

5 such employee does not exceed $250,000’’. 

6 (b) DETERMINATION OF SELF-EMPLOYMENT IN7 COME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER

8 2024.— 

9 (1) AMENDMENTS TO INTERNAL REVENUE

10 CODE OF 1986.— 

11 (A) IN GENERAL.—Section 1402(b) of the 

12 Internal Revenue Code of 1986 is amended to 

13 read as follows: 

14 ‘‘(b) SELF-EMPLOYMENT INCOME.— 

15 ‘‘(1) IN GENERAL.—The term ‘self-employment 

16 income’ means the net earnings from self-employ17 ment derived by an individual, except that such term 

18 shall not include net earnings from self-employment 

19 if such net earnings for the taxable year are less 

20 than $400. 

21 ‘‘(2) LIMITATION ON OASDI TAX.—For purposes 

22 of section 1401(a), the term ‘self employment in23 come’ shall not exceed the sum of— 

24 ‘‘(A) the total compensation not in excess 

25 of the contribution and benefit base (as deterVerDate Sep 11 2014 23:23 Jan 30, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7084.IH H7084

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1 mined under section 230 of the Social Security 

2 Act) which is effective for the calendar year in 

3 which such taxable year begins, reduced by the 

4 amount of wages not in excess of such base 

5 paid to such individual during the taxable year, 

6 plus 

7 ‘‘(B) the total compensation in excess of 

8 the greater of— 

9 ‘‘(i) $250,000, or 

10 ‘‘(ii) the amount of wages paid to 

11 such individual during the taxable year. 

12 ‘‘(3) DEFINITION AND SPECIAL RULES.— 

13 ‘‘(A) TOTAL COMPENSATION.—For pur14 poses of paragraph (2), the term ‘total com15 pensation’ means the sum of the net earnings 

16 from self-employment and the amount of wages 

17 paid to such individual during the taxable year. 

18 ‘‘(B) WAGES.—For purposes of this sub19 section, the term ‘wages’— 

20 ‘‘(i) includes such remuneration paid 

21 to an employee for services included under 

22 an agreement entered into pursuant to the 

23 provisions of section 3121(l) (relating to 

24 coverage of citizens of the United States 

25 who are employees of foreign affiliates of 


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1 American employers) as would be wages 

2 under section 3121(a) if such services con3 stituted employment under section 

4 3121(b), and 

5 ‘‘(ii) includes compensation which is 

6 subject to the tax imposed by section 3201 

7 or 3211 (or would be so subject but for 

8 paragraph (2) of section 3231(e)). 

9 ‘‘(C) NONRESIDENT ALIENS.—A non10 resident alien individual shall not be treated as 

11 an individual for purposes of paragraph (1), ex12 cept as provided by an agreement under section 

13 233 of the Social Security Act. An individual 

14 who is not a citizen of the United States but 

15 who is a resident of the Commonwealth of 

16 Puerto Rico, the Virgin Islands, Guam, or 

17 American Samoa shall not, for purposes of this 

18 chapter, be considered to be a nonresident alien 

19 individual. 

20 ‘‘(D) CHURCH EMPLOYEE.—In the case of 

21 church employee income, the special rules of 

22 subsection (j)(2) shall apply for purposes of 

23 paragraph (1).’’. 

24 (B) CONFORMING AMENDMENTS.— 


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1 (i) Section 1402(j)(2)(A) of the Inter2 nal Revenue Code of 1986 is amended by 

3 striking all that precedes ‘‘shall be ap4 plied’’ and inserting: 

5 ‘‘(A) SEPARATE APPLICATION OF DE MINI6 MIS RULE.—Subsection (b)(1)’’. 

7 (ii) Section 1402(j)(2)(B) of such 

8 Code is amended by striking ‘‘paragraph 

9 (2) of subsection (b)’’ and inserting ‘‘sub10 section (b)(1)’’. 

11 (2) AMENDMENTS TO THE SOCIAL SECURITY

12 ACT.— 

13 (A) IN GENERAL.—Section 211(b)(1) of 

14 the Social Security Act (42 U.S.C. 411(b)) is 

15 amended— 

16 (i) in subparagraph (I)— 

17 (I) by inserting ‘‘and before 

18 2025’’ after ‘‘1974’’; and 

19 (II) by striking ‘‘or’’ at the end; 

20 and 

21 (ii) by adding at the end the fol22 lowing: 

23 ‘‘(J) For any taxable year beginning in any 

24 calendar year after 2024, an amount equal to— 


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1 ‘‘(i) $250,000, reduced (but not below 

2 zero) by 

3 ‘‘(ii) the sum of— 

4 ‘‘(I) the part of the net earnings 

5 from self-employment (if any) which is 

6 not in excess of— 

7 ‘‘(aa) the amount equal to 

8 the contribution and benefit base 

9 (as determined under section 

10 230) which is effective for the 

11 calendar year in which such tax12 able year begins, minus 

13 ‘‘(bb) the amount of the 

14 wages paid to such individual 

15 during such taxable year, plus 

16 ‘‘(II) the amount of the wages 

17 paid to such individual during such 

18 taxable year which is in excess of the 

19 amount in subclause (I)(aa); or’’. 

20 (B) PHASEOUT.—Section 211(b) of the 

21 Social Security Act (42 U.S.C. 411(b)) is 

22 amended by adding at the end the following: 

23 ‘‘Paragraph (1) shall apply only to taxable 

24 years beginning in calendar years for which the 


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1 contribution and benefit base (as determined 

2 under section 230) is less than $250,000.’’. 

3 (c) SPECIAL RULE FOR WAGES FROM MULTIPLE

4 EMPLOYERS WHICH TOTAL IN EXCESS OF $250,000.— 

5 (1) IN GENERAL.—Subchapter A of chapter 21 

6 of the Internal Revenue Code of 1986 is amended by 

7 adding at the end the following new section: 

8 ‘‘SEC. 3103. SPECIAL RULES FOR REMUNERATION FROM 

9 MULTIPLE EMPLOYERS. 

10 ‘‘(a) IN GENERAL.—In the case of an employee re11 ceiving wages from more than one employer during a cal12 endar year, there is hereby imposed a tax on such em13 ployee (for the last taxable year beginning in the calendar 

14 year the wages are received) equal to the excess (if any) 

15 of— 

16 ‘‘(1) the tax that would have been imposed by 

17 section 3101(a) if such wages had been received 

18 from one employer, over 

19 ‘‘(2) the aggregate tax imposed by such section 

20 with respect to such wages. 

21 ‘‘(b) COORDINATION WITH SPECIAL REFUND PROVI22 SION.—No credit shall be determined under section 31(b) 

23 with respect to any employee for any taxable year unless 

24 the amount described in subsection (a)(1) with respect to 

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1 able year begins exceeds the amount described in sub2 section (a)(2) with respect to such wages, and the amount 

3 of such credit so determined shall not exceed such excess. 

4 ‘‘(c) WAGES.—For purposes of this section, the term 

5 ‘wages’ shall have the same meaning as when used in sec6 tion 1402(b). 

7 ‘‘(d) APPLICATION TO TIER I RAILROAD RETIRE8 MENT TAX.—In the case of compensation (as defined in 

9 section 3231(e)), for purposes of applying subsections (a) 

10 and (b), the reference to the tax that would have been 

11 imposed by section 3101(a) shall be treated as including 

12 a reference to so much of the tax that would have been 

13 imposed on such compensation under section 3201(a) or 

14 3211(a) (or would have been so imposed but for paragraph 

15 (2) of section 3231(e)) as is determined by reference to 

16 the rate of tax in effect under section 3101(a).’’. 

17 (2) FAILURE BY INDIVIDUAL TO PAY ESTI18 MATED INCOME TAX.—Subsection (m) of section 

19 6654 of the Internal Revenue Code of 1986 is 

20 amended to read as follows: 

21 ‘‘(m) SPECIAL RULE FOR CERTAIN EMPLOYMENT

22 TAXES.—For purposes of this section, the tax imposed by 

23 sections 3101(b)(2) (to the extent not withheld) and the 

24 tax imposed by section 3103 shall be treated as taxes im25 posed by chapter 2.’’. 


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1 (3) CLERICAL AMENDMENT.—The table of sec2 tions for subchapter A of chapter 21 of the Internal 

3 Revenue Code of 1986 is amended by adding at the 

4 end the following new item: 

‘‘Sec. 3103. Special rules for remuneration from multiple employers.’’. 

5 (d) CONFORMING CHANGE TO NATIONAL AVERAGE

6 WAGE INDEX.—Section 209(k) of the Social Security Act 

7 (42 U.S.C. 409(k)) is amended— 

8 (1) in paragraph (1), by inserting ‘‘and to para9 graph (4)’’ after ‘‘paragraph (2)’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(4) For each calendar year after 2024, the national 

12 average wage index as defined in this section for such cal13 endar year shall be deemed to be the national average 

14 wage index determined under the preceding paragraphs of 

15 this section increased by the following percentage: 

16 ‘‘(A) For calendar years 2025 through 2030, 

17 0.7 percent. 

18 ‘‘(B) For calendar years 2031 through 2036, 

19 0.8 percent. 

20 ‘‘(C) For calendar years after 2037, 0.9 per21 cent.’’. 

22 (e) EFFECTIVE DATES.— 

23 (1) IN GENERAL.—The amendments made by 

24 subsections (a) and (c) shall apply to remuneration 

25 paid in calendar years after 2024. 


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1 (2) SELF-EMPLOYMENT INCOME.—The amend2 ments made by subsection (b) shall apply to taxable 

3 years beginning after December 31, 2024. 

4 SEC. 4. INCLUDING EARNINGS OVER $250,000 IN SOCIAL SE5 CURITY BENEFIT FORMULA. 

6 (a) INCLUSION OF EARNINGS OVER $250,000 IN DE7 TERMINATION OF PRIMARY INSURANCE AMOUNTS.—Sec8 tion 215(a)(1)(A) of the Social Security Act (42 U.S.C. 

9 415(a)(1)(A)) is amended— 

10 (1) in clause (ii), by striking ‘‘and’’ at the end; 

11 (2) in clause (iii), by inserting ‘‘and’’ at the 

12 end; and 

13 (3) by inserting after clause (iii) the following: 

14 ‘‘(iv) 2 percent of the individual’s excess aver15 age indexed monthly earnings (as defined in sub16 section (b)(5)(A)).’’. 

17 (b) DEFINITION OF EXCESS AVERAGE INDEXED

18 MONTHLY EARNINGS.—Section 215(b) of the Social Secu19 rity Act (42 U.S.C. 415(b)) is amended— 

20 (1) by striking ‘‘wages’’ and ‘‘self-employment 

21 income’’ each place such terms appear and inserting 

22 ‘‘basic wages’’ and ‘‘basic self-employment income’’, 

23 respectively; and 

24 (2) by adding at the end the following: 


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1 ‘‘(5)(A) An individual’s excess average indexed 

2 monthly earnings shall be equal to the amount of the indi3 vidual’s average indexed monthly earnings that would be 

4 determined under this subsection by substituting ‘excess 

5 wages’ for ‘basic wages’ and ‘excess self-employment in6 come’ for ‘basic self-employment income’ each place such 

7 terms appear in this subsection (except in this paragraph). 

8 ‘‘(B) For purposes of this subsection— 

9 ‘‘(i) the term ‘basic wages’ means that portion 

10 of the wages of an individual paid in a year that 

11 does not exceed the contribution and benefit base for 

12 the year; 

13 ‘‘(ii) the term ‘basic self-employment income’ 

14 means that portion of the self-employment income of 

15 an individual credited to a year that does not exceed 

16 an amount equal to the contribution and benefit 

17 base for the year minus the amount of the wages 

18 paid to the individual in the year; 

19 ‘‘(iii) the term ‘excess wages’ means that por20 tion of the wages of an individual paid in a year 

21 after 2024 in excess of the higher of $250,000 or 

22 the contribution and benefit base for the year; and 

23 ‘‘(iv) the term ‘excess self-employment income’ 

24 means that portion of the self-employment income of 

25 an individual credited to a year after 2024 in excess 


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1 of the higher of $250,000 or such contribution and 

2 benefit base for the year.’’. 

3 (c) CONFORMING AMENDMENTS.—Title II of the So4 cial Security Act is amended— 

5 (1) in section 203(a)(6)(A) (42 U.S.C. 

6 403(a)(6)(A)), by striking ‘‘85 percent of such indi7 vidual’s average indexed monthly earnings’’ and in8 serting ‘‘the sum of 85 percent of such individual’s 

9 average indexed monthly earnings and 1 percent of 

10 such individual’s excess average indexed monthly 

11 earnings (as defined in section 215(b)(5)(A))’’; 

12 (2) in section 212 (42 U.S.C. 412), by inserting 

13 ‘‘excess average indexed monthly earnings,’’ after 

14 ‘‘average indexed monthly earnings,’’ each place it 

15 appears; and 

16 (3) in section 215(e)(1) (42 U.S.C. 415(e)(1)), 

17 by inserting ‘‘and before 2025’’ after ‘‘after 1974’’. 

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

19 this section shall apply with respect to individuals who ini20 tially become eligible (within the meaning of section 

21 215(a)(3)(B) of the Social Security Act) for old-age or dis22 ability insurance benefits under title II of the Social Secu23 rity Act, or who die (before becoming eligible for such ben24 efits), in any calendar year after 2024. 


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1 (e) HOLDING SSI, MEDICAID, AND CHIP BENE2 FICIARIES HARMLESS.—For purposes of determining the 

3 income of an individual to establish eligibility for, and the 

4 amount of, benefits payable under title XVI of the Social 

5 Security Act, eligibility for medical assistance under the 

6 State plan under title XIX (or a waiver of such plan), or 

7 eligibility for child health assistance under the State child 

8 health plan under title XXI (or a waiver of the plan), the 

9 amount of any benefit to which the individual is entitled 

10 under title II of such Act shall be deemed not to exceed 

11 the amount of the benefit that would be determined for 

12 such individual under such title as in effect on the day 

13 before the date of the enactment of this Act. 

Æ 


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