Washington (AP) – President Donald Trump continues to say that mega tax on Republicans and costs to reduce legislation will eliminate taxes on federal social security benefits.
Not so.
At best, there is no “social security tax” of Donald Trump to exaggerate the benefits for the elderly if the proposals of the Chamber or Senate are signed in the law.
Here is a look at Trump’s latest statements and what the suggestions would do – or not.
What Trump said
Trump repeatedly told voters during his 2024 campaign that he would eliminate social security taxes. As his large -scale legislative package passed through the Congress, the Republican president claims that this would do the bill.
Trump said in a recent Fox News Futures Sunday morning that the bill includes “no council tax tax, no social security tax, no overtime tax.”
Tax deduction
But instead of eliminating the tax, the Senate and the Chamber have accepted their own versions of temporary tax deduction for adults over 65, which applies to all income – not just social security.
And it turns out that not all social security beneficiaries will be able to request deduction. Those who will not be able to do so include the elderly with the lowest income who no longer pays taxes on social security, those who decide to demand their benefits before they are 65 years old, and those over a certain income threshold.
The Senate proposal includes a temporary deduction of $ 6,000 for adults over 65 years of age, contrasting with the Chamber’s proposal, which includes a temporary deduction of $ 4,000.
The Senate’s proposal, approved on Tuesday, will eliminate the social security tax for the elderly with a corrected gross income of $ 75,000 or less or less or $ 150,000 if it is filed as a marriage pair.
If it is adopted by law, tax deduction will last four years, from 2025 to 2029.
The deductions are terminated by increasing income.
The White House is affecting the impact
Completing a new analysis of the Council of Economic Councilors, the White House said on Tuesday that “88% of all the elderly people receiving social security-they will not pay tax on their social security benefits,” it will be said that the Senate Sente of $ 6,000 for adults is not to benefit from 33.9 million adults. Deduction of deduction of the average increase.
Gareth Watson, Director of Thank Think Thank policy analysis, said that connecting the tax deduction with the claim that there would be no social security tax, could go wrong and anger many elderly people who would expect to pay taxes on their social security benefits.
“While deducting provides some relief for the elderly, this is far from completely canceling the tax on their benefits,” Watson said.
Economic effect
The cost of actual removal of social security tax will have a huge impact on the economy.
The Budget Model of the University of Pennsylvania in Pen Wharton’s budget estimates that the removal of income taxes on social security benefits “would reduce revenue by $ 1.5 trillion in 10 years and increase federal debt by 7 percent to 2054.” and will accelerate the estimated date of the Social Security Fund from 2034 to 2032.
Discussions on social security taxes are only part of the general bill evaluated in its Senate version to increase federal deficits over the next 10 years by nearly $ 3.3 trillion from 2025 to 2034, according to the Congress Budget Office.
The administration staff said the price of the tax account would be offset by the tariff income.
Recently, CBO separately estimated that Trump’s extensive tariff plan would reduce the $ 2.8 trillion deficit over a period of 10 years, while shrinking the economy, increasing inflation and reducing household purchasing power as a whole.