Senator Ricketts Proposes Tax Cuts As Congress Seeks To Enact Trump Tax Agenda

Republican Nebraska Sen. Pete Ricketts and Democratic Nevada Sen. Jacky Rosen are jumping into Trump’s tax cut agenda, proposing their “Tax Cuts for Veterans Act” that aims to eliminate the federal tax on military retirement benefits.

Ricketts is proposing another bill, the “Social Security Check Tax Cut Act” designed to phase out federal taxes on Social Security benefits. The proposals are the latest of many tax priorities Congress is considering as they look to slash taxes in several different areas in an attempt to align with President Donald Trump’s campaign promises.

“Working together, we’ve hit the ground running. We’ve remained united. We’re working hard to deliver results and keep our promises,” Ricketts wrote Friday in his weekly column.

The veteran’s tax cut proposal is a reintroduction of a tax cut Ricketts has been pushing since 2023. The bill is modeled after Ricketts’ successful endeavor to remove state taxes on military retirement benefits during his time as governor of Nebraska. Veterans savings would vary depending on their earned retirement pay; someone who served for 20 years could see savings over $500 a month and $6000 a year. Rosen joined as a cosponsor in June 2024, giving the bill a bipartisan lift in the Senate.

Ricketts’ social security tax cut plan would begin with a 10% tax cut its first year, increasing to 20% the next. Congress would then phase out the tax by 10% per year, making all social security income tax free by 2033.