Social Security Welcomes Trump’s New Tax Bill
The Social Security Administration (SSA) has backed President Donald Trump’s One Big Beautiful Bill Act. The agency called it “landmark” legislation that offers targeted tax relief to millions of older Americans receiving Social Security payments. It marks a significant shift in how retirement benefits are treated under the federal tax code. SSA officials view the bill as a reaffirmation of the federal government’s commitment to older Americans.
The Social Security Administration backs President Donald Trump’s One Big Beautiful Bill Act
House Approves Bill Ahead of Trump Ceremony
The House passed the legislation 218–214 on Thursday. Trump will sign the bill at a White House ceremony on Friday evening. The legislation is expected to reduce the number of seniors paying income tax on their Social Security benefits by nearly 90 percent. The vote followed days of debate on the bill’s fiscal implications and long-term sustainability. Republican lawmakers rallied behind the measure, citing the need to protect seniors from what they labelled an unfair tax burden.
SSA Commissioner Praises the Legislation
Social Security Commissioner Frank Bisignano stated, “This is a historic step forward for America’s seniors.” He said the bill delivers on Trump’s promise to protect Social Security. He added that lowering the tax burden allows retirees to enjoy their retirement with greater security. “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans,” Bisignano added. The agency believes the legislation reflects its mission to support the nation’s ageing population.
Social Security Commissioner Frank Bisignano
How the Tax Deduction Works
The legislation introduces a $6,000 tax deduction for individuals aged 65 or older who earn up to $75,000. For married couples, the deduction applies to those with joint income up to $150,000. The benefit phases out for individuals earning over $175,000 and couples earning more than $250,000. The deduction is temporary and will expire in 2028 unless Congress renews it. The SSA noted that this adjustment marks a policy shift designed to alleviate tax pressure on middle-income seniors.
Millions to Receive Tax-Free Benefits
The White House said on Monday that 51.4 million seniors—around 88 percent of all recipients—will no longer pay income tax on their Social Security benefits. The new provisions will start in the 2026 tax year and stay in effect through 2028. The administration views the reform as a step toward easing the financial burdens faced by retirees. The announcement followed a nationwide campaign by Trump to repeal taxes on Social Security benefits.
Fiscal Concerns Over Deficit Impact
While the bill offers savings to retirees, it has sparked fiscal debate. The Congressional Budget Office (CBO) projects the bill will add $3.3 trillion to the national deficit over the next decade. These estimates have raised concerns among lawmakers and policy analysts. Some fiscal conservatives warned that the bill may complicate future budget negotiations. The projected costs could place additional strain on programs like Medicare and federal infrastructure projects.
Critics Point to Medicaid and Welfare Cuts
The bill includes deep cuts to Medicaid and other social welfare programs. Opponents say these changes may weaken the safety net for vulnerable Americans. Democrats argue that the cuts will affect low-income households and reduce access to healthcare and food security. They have pledged to seek amendments or reversal of the welfare-related provisions. Analysts also warn that the social spending cuts may offset the benefits of the tax relief for many families.
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Tax Experts Seek Broader Reforms
Tax strategist Karla Dennis said seniors need more lasting solutions. “We should stop taxing Social Security for people who are living on moderate incomes,” she said. She argued the current tax model does not reflect how seniors earn income in retirement today. Her comments echo concerns from advocacy groups pushing for a permanent overhaul of retirement income taxation. Many argue that the short-term deduction should evolve into a long-term exemption.
Trump Declares It His Largest Tax Cut
Trump addressed supporters in Iowa following the bill’s passage. “I think when you go over the bill, it was very easy to get them to a ‘yes’… Biggest tax cut in history,” he said. He praised the Republican Party for delivering on campaign promises and pledged more economic reforms. Trump framed the bill as a measure that rewards hard work and supports American retirees. His remarks were widely circulated on conservative media outlets.
Bill Signing and Implementation Timeline
Trump will sign the One Big Beautiful Bill Act into law at 5 p.m. ET on Friday. The Social Security deduction changes take effect in 2026 and remain valid through 2028. Lawmakers must act before then to make the deductions permanent. Political observers believe the law’s expiry timeline could shape debates in the 2028 presidential race. The signing ceremony is expected to feature key Republican leaders and senior SSA officials.
SSA Reaffirms Commitment to Seniors
The SSA reaffirmed that Social Security remains a pillar of support for older Americans. The agency sees the legislation as a step towards improving retirement conditions for millions. The change may also influence upcoming policy decisions as the 2026 expiry approaches. SSA officials pledged to continue analysing the bill’s impact and updating seniors with new guidance. The agency’s website will include tools to help beneficiaries understand their revised tax status.
