U.S. Rep. Don Bacon (R-NE) recently offered legislation that would amend the Internal Revenue Code to establish an above-the-line tax deduction for America’s senior citizens.
“The Biden administration’s tax policies are unmanageable with inflation at its highest levels in years,” Rep. Bacon said on Friday. “This tax bill will provide some real relief to our seniors and their families who are struggling to make ends meet as a result of the Biden administration’s damaging economic policies.”
The congressman on Sept. 6 sponsored the Seniors in the Workforce Tax Relief Act, H.R. 9465, to establish a temporary five-year deduction for seniors in the amount of $25,000 annually. The allowable deduction amount would phase out between $100,000 and $125,000.
The phaseout amounts would be doubled in the case of a joint return or when there is a joint return with respect to which both filers are over age 65, according to a bill summary provided by the congressman’s staff.
If the bill is enacted, the effective date of the deduction would begin with income received in the 2024 taxable year and would include income from 401k’s and other taxable annuity payments, not just income from wages, the summary says.
The bill is part of the lawmaker’s comprehensive tax plan, which also includes two other proposed bills: the Tip Tax Termination Act, H.R. 7870, and the Second Job Tax Relief Act of 2024, H.R. 8194.
The Tip Tax Termination Act, which he introduced on April 5, would exempt from inclusion in taxable income the first $20,000 in earned tips. The Second Job Tax Relief Act of 2024, which Bacon sponsored on May 1, would amend the tax code to exclude from income and payroll tax some compensation earned from a second job.
All three measures are under consideration in the U.S. House Ways and Means Committee.