Thu Jul 03 19:00:00 UTC 2025: **News Article:**
**Trump’s Claim of Social Security Tax Elimination Exaggerated in GOP Tax Bill**
**WASHINGTON (AP) -** President Donald Trump’s repeated claims that the Republican tax and spending cut legislation will eliminate taxes on Social Security benefits are, at best, an exaggeration. While the House and Senate have passed versions of the bill that include tax deductions for seniors, they fall far short of eliminating the tax on Social Security altogether.
During his 2024 campaign, Trump promised to eliminate Social Security taxes, and has continued to claim that the current legislation fulfills that promise. However, both the House and Senate proposals only offer a temporary tax deduction for seniors aged 65 and over, applicable to all income, not just Social Security. This deduction also excludes the lowest-income seniors (who already don’t pay taxes on Social Security), those claiming benefits before 65, and those above a certain income level.
The Senate proposal offers a $6,000 deduction for seniors with adjusted gross incomes of $75,000 or less (or $150,000 for married couples), while the House proposes $4,000. These deductions would last from 2025 to 2029 and phase out as income increases.
The White House claims that “88% of all seniors who receive Social Security will pay NO TAX on their Social Security benefits” under the plan, estimating that the Senate proposal would benefit 33.9 million seniors with an average after-tax income increase of $670.
However, tax policy experts warn that Trump’s claims could mislead seniors. Garrett Watson of the Tax Foundation stated, “While the deduction does provide some relief for seniors, it’s far from completely repealing the tax on their benefits.”
Eliminating Social Security taxes entirely would have significant economic consequences. The Penn Wharton Budget Model estimates a $1.5 trillion revenue loss over 10 years, increasing federal debt and potentially accelerating the depletion of the Social Security Trust Fund.
The broader tax bill, projected to increase federal deficits by $3.3 trillion over the next decade, is a subject of ongoing debate. The administration claims that tariff income will offset the bill’s cost, but the Congressional Budget Office estimates Trump’s tariff plan would shrink the economy and raise inflation, despite potentially cutting deficits.
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