Vol 6 - September 2025: Abolish Taxes on Social Security Benefits

Pillar Two of the MAGNA Agenda: Ending the Federal Tax on Social Security Benefits for Good

 Americans already fund Social Security with every paycheck. Then, when they collect their benefits, Washington taxes them again. That’s double taxation, plain and simple.

Welcome back to Straight Talk with Casey—your monthly source of direct, common-sense reform from someone who believes America’s best days are ahead, not behind.

Last month, in Pillar One of the MAGNA Agenda, we took on property taxes—those endless bills that strip away true homeownership and punish seniors, veterans, and working families. This month, we turn to another injustice: the federal tax on Social Security benefits.

This tax is not only unfair—it’s a broken promise. Americans already fund Social Security with every paycheck. Then, when they collect their benefits, Washington taxes them again. That’s double taxation, plain and simple. It didn’t happen by accident. In 1983, a Democrat-controlled Congress created the tax. In 1993, they expanded it to hit more retirees. Former President Joe Biden voted for both bills.

The result? An $85 billion annual tax bill for seniors, survivors, and disabled Americans—money that could be keeping the heat on, buying groceries, or covering prescriptions.

President Trump made important progress through the One Big Beautiful Bill, which created a $6,000 deduction for individuals 65 and older. This change raised the share of seniors who no longer pay federal tax on their benefits from roughly 64% to nearly 88%. That’s a big step forward—but it’s not a full repeal. The tax still exists for millions of Americans, and the deduction is set to expire in 2029.

That’s why I’m proposing the MAGNA Social Security Tax Freedom Act—to finish the job, end this double taxation for good, and protect Social Security for both today’s retirees and tomorrow’s workers.

Why Social Security Matters—Now and for the Future

Social Security is more than a check in the mailbox—it’s the foundation of retirement security in America. It keeps millions of seniors out of poverty, provides vital income to disabled workers, and gives survivor benefits to children and spouses after the loss of a breadwinner.

But Social Security is not just for today’s retirees and beneficiaries. It’s also a promise we make to younger workers—that after decades of paying in, they will have a secure, reliable income in retirement.

If you’re 35 years old today, you’ve already contributed tens of thousands of dollars into the system. By the time you retire, that will be hundreds of thousands. You deserve to know that your benefits will be there—and that you won’t be taxed on them a second time.

If you’re just starting your first job, your FICA taxes are building your future retirement security. Protecting and responsibly managing the trust funds now ensures the system stays strong for you.

Casey’s Plan: The MAGNA Social Security Tax Freedom Act

Ending this tax is not just about relief—it’s about responsible stewardship. We can end double taxation and still protect Social Security and Medicare for the long term.

Step 1: Full Repeal of IRC §86

End the federal taxation of retirement, survivor, and disability benefits starting with tax year 2027. Supplemental Security Income (SSI) remains unaffected.

Step 2: Trust Fund Hold Harmless

Replace every dollar currently sent to Social Security (OASDI) and Medicare (HI) trust funds with automatic general fund transfers—certified annually by Treasury, IRS, and SSA—to ensure benefits are never cut.

Step 3: Targeted Relief Fallback

If Congress can’t deliver full repeal immediately, exempt individuals under $75,000 and couples under $150,000 (indexed to inflation) and phase the tax out completely within five years.

Step 4: Responsible Offsets

Pay for repeal with real savings—not by raiding trust funds. That means cutting waste, ending pharmacy middleman price games, reforming Medicare payments, and closing narrow corporate tax loopholes without hurting small businesses.

Why This Plan Works for Every Generation

• Keeps the Promise – You earned it; you keep it. No second bite at your benefits.

• Protects the Program – Full trust fund protection so Social Security stays solvent for future generations.

• Responsible Management – Offsets ensure fiscal stability while protecting Medicare and Social Security.

• Fair for All – Relief for current retirees, and a guarantee for younger workers that the program they’re paying into now will be there for them—without double taxation—when they retire.

“Social Security is a promise we make to every American worker. My plan keeps that promise—for today’s seniors and tomorrow’s.” — Casey Chlebek

The Stakes

Democrats talk about “protecting Social Security” while quietly taxing the benefits you already paid for. I’m offering a real, constitutional, fully-funded plan that ends the tax, protects the trust funds, and keeps the program strong for your children and grandchildren.

Because protecting Social Security isn’t just about today—it’s about the next generation of American workers.

Coming Next Month: Pillar Three – Abolish IRS Taxes on Retirement Income

Social Security is just one piece of the retirement puzzle. Pensions, 401(k)s, and other retirement savings are also being taxed in ways that drain the value of a lifetime’s work. In Pillar Three of the MAGNA Agenda, we’ll take on these taxes—so every dollar you save for retirement works for you, not Washington.

To read last month’s Pillar One newsletter on abolishing property taxes and to learn more about all of my plans in detail, visit www.CaseyForSenate.com. And as always, I want to hear your thoughts, stories and feedback – please reach out at info@caseyforsenate.com.

Together, we can protect your benefits, your dignity, and your future.

Yours in service,

Casey Chlebek

for U.S. Senate, Illinois