US SB2716

Repeals federal income tax on Social Security benefits for all taxable years after enactment, with Treasury appropriations to hold Social Security trust funds harmless from lost revenue

Applies Social Security payroll taxes to wages and self-employment income above $250,000 starting in 2026, creating a "donut hole" where earnings between the current contribution base (approximately $168,600 in 2024) and $250,000 remain exempt

Adds a new 2% benefit calculation factor for earnings above $250,000, allowing high earners who pay additional payroll taxes to receive modestly increased benefits based on their excess average indexed monthly earnings

Increases the national average wage index by 0.7% (2026-2030), 0.8% (2032-2036), and 0.9% (after 2038) to account for expanded wage coverage

Holds SSI, Medicaid, and CHIP beneficiaries harmless by excluding any Social Security benefit increases from income calculations for these programs