A large and beautiful bill that will not cancel taxes on the advantages of federal social security, as Trump says he will do
no.
At best, Trump’s demand for “a non -tax on social security” exaggerates the benefits of the elderly if the proposals of the House of Representatives or the Senate are signed in the law.
Here’s a look at Trump’s latest data, and what the proposals will do – or do not do so.
What Trump said
Trump has repeatedly told the voters during his 2024 campaign that he would remove taxes on social security. With the transmission of his huge legislative package through Congress, the Republican President claimed that this is what the bill would do.
Trump said in the appearance of a hadith on Fox The news “futures contracts on Sunday morning”, which includes the draft law “,” there is no tax on advice, no tax on social security, and no tax on additional work.
Temporary tax discount
But instead of eliminating the tax, the Senate and the Council approved its own publications from a temporary tax deduction for the elderly between the ages of 65 years or more, which applies to all income – not just social security.
It turns out that all the beneficiaries of social security will be able to claim a opponent. Those who will not be able to do so include the elderly with minimal income who do not already pay taxes on social security, those who choose to claim their advantages before they reach the age of 65 and those who exceed the specified income threshold.
The Senate’s proposal includes a temporary discount of $ 6000 for the elderly over 65 years, contrary to the parliament’s proposal, which includes a temporary discount of $ 4000.
On Tuesday, the Senate’s proposal will cancel the social security tax obligations for the elderly who have a total rate of $ 75,000, or less or 150,000 dollars if its provision as a married couple.
If it is transferred to the law, the tax deduction will last four years, from 2025 to 2029.
Gradually get rid of increased income.
The White House accumulates effect
New promotion Analysis of the Council of Economic AdvisorsThe White House said on Tuesday that “88 % of all the elderly who get social security-will not pay any tax on the advantages of social security,” saying that the Senate of $ 6000 of senior dollars is estimated to benefit 33.9 million elderly, including the elderly do not claim.
Garrett Watson, director of policy analysis at the Tax Corporation Research Center, said that mixing the tax deduction with the claim that there will be no tax on social security that may end with confusion and neglect many elderly people who expect not to pay taxes on the advantages of social security.
“While the opponent provides some relief to the elderly, it is far from canceling the tax completely on their advantages,” Watson said.
Economic impact
The cost of the judiciary actually on the tax on social security will have enormous effects on the economy.
Pennsylvania University Penn Wharton Budget Model It is estimated that the disposal of income taxes on the advantages of social security “would reduce revenue by $ 1.5 trillion over a period of 10 years and increase federal debts by 7 percent by 2054” and accelerate the expected date of the Social Security Fund from 2034 to 2032.
Discussions on social security taxes are part of the total draft law, which is estimated at the Senate’s version to increase the federal deficit over the next ten years by about 3.3 trillion dollars from 2025 to 2034, according to the Congress Budget Office.
Administration officials said the cost of the tax bill will be compensated by the income of the customs tariff.
Recently, the Central Bank of Oman Separately estimated The Trump’s comprehensive tariff plan will reduce the deficit by $ 2.8 trillion over a period of 10 years while reducing the economy, which increases the inflation rate and reduces the purchasing power of families in general.
