President Trump and his subordinates have repeatedly claimed that the sweeping domestic policy package that just passed the Senate eliminates taxes on Social Security, promoting that as one of the chief merits of the bill as he tries to corral support for the politically divisive legislation.
Except the bill doesn’t eliminate Social Security taxes at all.
Instead, the bill creates a new, additional tax deduction specifically for seniors 65 and over that is designed to provide the most relief for people on limited income. But instead of promoting the new tax deduction, Mr. Trump has sought to rebrand it as an elimination of the Social Security tax, which he promised to do during his 2024 campaign.
“There’s also no tax on tips, no tax on Social Security, no tax on overtime,” Mr. Trump said during an interview that aired a few days ago on Fox News’ “Sunday Morning Futures,” while discussing the highlights of the bill. It was the second time in less than a week he had made such a claim.
What the bill does is try to reduce the tax burden on lower and middle-income seniors through the new deduction, which can be claimed whether or not people itemize their returns.
The bill that passed the Senate on Tuesday would offer a tax deduction of $6,000 to seniors with individual incomes up to $75,000 or married earnings of up to $150,000. Above that threshold, the deduction would be lowered as incomes rise, and would phase out entirely for seniors with individual incomes of $175,000 or $250,000 as a married couple.
The tax deduction is expected to expire after 2028.
On Tuesday, the White House acknowledged that even by its own analysis, the deduction would not eliminate Social Security taxes for all recipients, citing the Council of Economic Advisers’ findings that 88 percent of seniors would be able to claim enough exemptions and deductions to clear their Social Security tax burden.
But the White House is doubling down on the president’s misleading characterization of the tax deduction nonetheless.
“No Tax on Social Security is a Reality in the One Big Beautiful Bill,” read the headline the White House blasted out in a news release on Tuesday morning promoting the economic council’s findings. But even the text itself revealed that the break was not universal.
“Promises made, promises kept,” the release still concluded.
Karoun Demirjian is a breaking news reporter for The Times.
The post Trump Exaggerates His Agenda Bill’s Impact on Social Security Taxes appeared first on New York Times.
