House Repeals Tax on Social Security Benefits

The U.S. House of Representatives has voted to repeal the tax on Social Security benefits for higher-income beneficiaries. Under the current law, which was enacted in 1993, individuals with income between $25,000 and $34,000 and couples with income between $32,000 and $44,000 are taxed on up to 50% of their benefits, while individuals with income over $34,000 and couples with income over $44,000 pay a "second tier" tax on up to 85% of their benefits. 

President Clinton has already vowed to veto the repeal.