Most Social Security recipients will pay no tax on their benefits under President Donald Trump's "one, big, beautiful bill," the White House said Tuesday.
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According to the president's Council of Economic Advisers, 88% of all Social Security recipients will pay no tax in what amounts to the largest tax break in history for America's seniors, the White House said in a press release.
The tax cut and spending megabill would provide a new bonus deduction of $6,000 for seniors and $12,000 for married seniors 65 and older beginning in 2025.
Under the proposed legislation being worked on in Congress, a senior who files as a single taxpayer and receives the current average retirement benefit (approx. $24,000) would see deductions that exceed their taxable Social Security income.
Married seniors who both receive the average $24,000 Social Security income, a total of $48,000 in annual income, would also see deductions that exceed their taxable Social Security income.
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"The new $6,000 senior deduction is estimated to benefit 33.9 million seniors, including seniors not claiming Social Security," the council said in its report concerning the bill's effects on Social Security.
"The deduction yields an average increase in after-tax income of $670 per senior who benefits from it. It is subject to a phase out at a 6% rate for single taxpayers with income over $75,000 and for married filers with income over $150,000."
That means that, for every $1,000 in additional income over $75,000 for singles or $150,000 for married seniors filing jointly, the deduction will decline by $60, reaching a deduction of $0 at $175,000 of income for single seniors or $250,000 for married seniors filing jointly.
Media reports late Tuesday morning said the Senate was preparing to vote on the megabill. Whenever it passes the upper chamber, the legislation will need to go back to the House for approval.
The Council of Economic Advisers, an agency within the executive branch, was established by Congress in the 1946 Employment Act. It is charged with offering the president objective economic advice on the formulation of both domestic and international economic policy.
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Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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