Following the recent passage of the spending bill, the Social Security Administration reportedly sent out mass emails praising it, falsely suggesting that it “eliminates federal income taxes on Social Security benefits for most beneficiaries.”
Former President Donald Trump echoed the claim at a rally, declaring, “no tax on Social Security for our great seniors,” reinforcing a campaign promise. However, the bill does not actually eliminate taxes trump social security news.
Due to Senate rules, changes to Social Security cannot be made through the reconciliation process, which was used to pass the bill. What the legislation does offer is a $6,000 annual tax deduction for seniors aged 65 and older through 2028, based on income levels.
While this benefits many Social Security recipients, it is not linked to Social Security itself and excludes younger recipients, such as disabled individuals. As of now, both the White House and the SSA have declined to comment on the misleading claims.
What To Watch For
Former President Donald Trump is scheduled to sign the newly passed spending bill into law at 5 p.m. EDT on Friday. This comes after the House gave its final approval on Thursday.
How the Senior Tax Deduction Works in Trump’s Bill
Trump’s tax policy introduces a $6,000 annual deduction for seniors aged 65 or older, valid through 2028. To qualify, individuals must have a Social Security number and earn $75,000 or less in taxable income after other deductions—or $150,000 or less for joint filers.
If a senior earns more than $75,000, the deduction is reduced by 6% of the amount over the threshold. For example, someone with $100,000 in taxable income would see the deduction shrink by $1,500 (6% of $25,000), leaving them with a $4,500 deduction.
Those earning over $175,000 as individuals or $250,000 filing jointly won’t receive any benefit from this deduction.
Can Trump Eliminate Taxes on Social Security Benefits?
Trump has long pledged to remove taxes on Social Security income, but doing so would require at least 60 Senate votes—a tough ask with only a slim Republican majority.
Experts remain skeptical. According to the Committee for a Responsible Federal Budget (CRFB), eliminating these taxes would strip $1.6 trillion in revenue from Social Security and Medicare between 2026 and 2035. This would cause Social Security to become insolvent by 2032, and Medicare by 2030—advancing their projected insolvency dates by one and six years, respectively.
How Will Trump’s Bill Affect Social Security?
While Trump’s new spending law doesn’t make direct changes to Social Security, it still poses financial pressure. The CRFB warns that the tax cuts included in the bill would accelerate the depletion of Social Security and Medicare funds, with Social Security expected to run out of money in 2032, a year earlier than prior estimates.
Which Policy Helps Seniors More?
According to the Tax Foundation, a center-right policy group, the $6,000 senior deduction benefits most older Americans more than a total elimination of taxes on Social Security payments.
The deduction is especially helpful for those in the 20th to 40th income percentiles, increasing their after-tax income by 0.7% to 0.9%. By contrast, removing Social Security taxes would increase after-tax income for this group by only 0.1% to 0.4%.
Higher earners—those in the top 20%—aren’t eligible for the $6,000 deduction, so they would only see a 0.05% gain from it. However, they would benefit more—by about 0.6%—if Social Security taxes were repealed.
For the lowest 20% of earners, neither policy makes much difference. These taxpayers already pay little to no tax on Social Security and usually benefit from existing tax credits and deductions.
Conclusion
While former President Trump has repeatedly vowed to protect Social Security and eliminate taxes on its benefits, the recently passed policy bill does not deliver on that specific promise. Instead, it focuses on other campaign tax pledges, such as eliminating taxes on tips (up to $25,000) and overtime (up to $12,500), both of which are set to expire in 2028 alongside the senior tax deduction.
Though Trump positioned himself as a defender of Social Security, his administration has previously faced criticism for will trump cut social security and unsubstantiated claims about fraud within the SSA, raising concerns about his broader commitment to the program’s stability.
Despite the misleading rhetoric around Social Security tax elimination, the new bill does not alter how Social Security benefits are taxed. True reforms to Social Security remain politically difficult and legally constrained, particularly given the Senate’s procedural limits, leaving the program’s future—and the promises tied to it—uncertain.
