This bill addresses a longstanding structural flaw in the federal taxation of Social Security benefits: the income thresholds that determine how much of a recipient's benefits are subject to federal income tax have never been adjusted for inflation since they were established. As a result, an ever-growing share of Social Security recipients has been pulled into taxability over the decades through bracket creep, even when their real purchasing power has not increased. The bill corrects this by amending the Internal Revenue Code to index the base amount and adjusted base amount thresholds in Section 86 to inflation, beginning with taxable years after 2026. The core objective is to restore the original purchasing-power intent of the thresholds and provide meaningful tax relief to Social Security recipients whose nominal incomes have risen solely due to inflation rather than genuine economic gains.

What is the status of S5084?

Introduced as of July 22, 2026.

This bill addresses a longstanding structural flaw in the federal taxation of Social Security benefits: the income thresholds that determine how much of a recipient's benefits are subject to federal income tax have never been adjusted for inflation since they were established. As a result, an ever-growing share of Social Security recipients has been pulled into taxability over the decades through bracket creep, even when their real purchasing power has not increased. The bill corrects this by amending the Internal Revenue Code to index the base amount and adjusted base amount thresholds in Section 86 to inflation, beginning with taxable years after 2026. The core objective is to restore the original purchasing-power intent of the thresholds and provide meaningful tax relief to Social Security recipients whose nominal incomes have risen solely due to inflation rather than genuine economic gains.

What is the status of S5084?

Introduced as of July 22, 2026.

Amendment

119th Congress

S.5084

A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the base amount and adjusted base amount for purposes of determining taxable social security benefits.

Introduced

S. 5084

Introduced in Senate · July 29, 2026

July 22, 2026

Mr. Kennedy 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 apply inflation adjustments to the base amount and adjusted base amount for purposes of determining taxable social security benefits.

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

SECTION 1. Inflation Adjustment.

S5084 U.S. Senate: Federal SB5084 amends the Internal…