Washington (AP). President Donald Trump continues to say that Republican mega taxes and costs related to laws will eliminate taxes on federal social security benefits.
This is not the case.
At best, Donald Trump’s lawsuit “No Taxes for Social Security” exceeds the benefits of seniors if the proposals made by the palace or Senate are signed by law.
Take a look at Trump’s latest statements and what these suggestions would do – whether they won’t do it.
What the Trump said
In 2024 During the campaign, Trump repeatedly told voters that they would remove social security fees. As his huge legislative package moved through Congress, the Republican president said that was exactly what the bill would do.
Trump, due to the recent appearance of Fox News, told Sunday morning for future transactions “that there is” no fees for advice, no social security fees and overtime tax. “
Temporary tax deduction
However, instead of lifting the fee, the Senate and the Palace each adopted their own temporary tax deduction versions to seniors aged 65 and over, which apply not only to social security but also to all income.
And it turns out that not all recipients of social security will be able to demand deduction. Those who are unable to do so are the lowest income that no longer pays social security taxes, those who decide to claim their benefits before the age of 65, and those that exceed the defined revenue limit.
The Senate’s proposal contains a temporary deduction of $ 6,000 for seniors over the age of 65, contrasting the palace’s proposal, which includes a temporary deduction of $ 4,000.
On Tuesday, the Senate’s proposal will eliminate the social security fee commitment to seniors with a total income of $ 75,000 or less or $ 150,000 if the married couple is submitted.
If the law was passed, the tax deduction would last for four years, from 2025 to 2029.
The deductions increase when income increases.
White House Effect
Based on the new Board of Economic Council Analysis, the White House said on Tuesday that “88% of all seniors receiving social security will pay their social security fees”, saying that the Senate offer is $ 6,000 in deduction of $ 33.9 million.
Garrett Watson, Director of the Tax Fund’s Thought Group Policy Analysis, said tax deduction with claim that social security tax tax may be confusing and angry with many seniors who expect not paying taxes for their social security benefits.
“Although the deduction provides some relief to seniors, it is far from completely eliminated by their benefits fee,” Watson said.
Economic impact
In fact, the cost of removing the social security fee will have a huge impact on the economy.
The Penn Wharton University of Pennsylvania estimates that lifting income taxes on social security benefits would “reduce revenue by $ 1.5 trillion in 10 years and increase federal debt by 7 percent 2054” And accelerated the expected date of depletion of the Social Security Trust Fund from 2034 to 2032.
According to the Congress Budget Office, the social security tax discussions are only part of the general bill, which is estimated to increase the federal deficit in the next 10 years in the next 10 years of almost 3.3 trillion USD from 2025 to 2034.
Administration officials said tax account costs would be reimbursed by tariff revenue.
Recently, the CBO has separately estimated that Trump’s tariff plan will reduce the deficit of $ 2.8 trillion, while reducing the economy by increasing the inflation and reducing the purchasing power of the household.