In past Congresses, bills have been introduced to exempt from $10,000
up to the maximum Social Security benefit ($18,432 in 2001) from
federal taxation. Like all tax measures, these bills are referred to the
House Ways and Means Committee. 
                       
In 1997, Rep. Bruce Vento (D-MN) introduced HR-372, which would give
federal retirees a tax exemption equal to the maximum Social Security
retirement benefit. The exemption would be subject to certain income
limits. For retirees with incomes above $25,000 for an individual and
$32,000 for a couple there would be offsetting provisions to prevent
overly generous tax exemptions for those with higher incomes, or who
collect both federal and private sector annuities.  He re-introduced
this bill in the 106th Congress.

In the 107th Congress, Representative Robert Bradley has introduced 
H.R.2462, which is a similar bill.

At the present time, there is no companion bill in the Senate.