Trump falsely claims GOP tax bill will end taxes on Social Security

In Washington, D.C., President Donald Trump has repeatedly asserted that the Republicans' tax and spending cut legislation will completely eliminate taxes on Social Security benefits. These claims have emerged during his 2024 campaign as the legislative package moves through Congress. In a recent appearance on Fox News, Trump stated that the bill includes provisions for no tax on tips, Social Security, or overtime. However, while the House and Senate proposals do include tax deductions for seniors aged 65 and over, they do not fully eliminate the taxes on Social Security benefits. The Senate proposal offers a $6,000 deduction, while the House proposal provides a $4,000 deduction, applicable to all income—not just Social Security. Importantly, not all Social Security beneficiaries will be eligible for the proposed deductions, as lower-income seniors, those claiming benefits prior to turning 65, and individuals exceeding specified income thresholds will be excluded. If implemented, the Senate proposal could eliminate Social Security tax liability for seniors with adjusted gross incomes of $75,000 or less, or $150,000 for married couples, effective for a four-year period from 2025 to 2029. The deductions are set to phase out as income increases. According to a White House analysis, 88% of seniors receiving Social Security would pay no tax on their benefits, potentially benefiting 33.9 million seniors. However, experts warn that merging tax deductions with claims of total elimination of taxes on Social Security may mislead many seniors. While the deduction offers some relief, it does not repeal taxes on benefits entirely. The fiscal implications of fully eliminating taxes on Social Security are significant; estimates suggest it could reduce federal revenue by $1.5 trillion over a decade, raising federal debt by 7% by 2054 and accelerating the depletion of the Social Security Trust Fund from 2034 to as early as 2032. This discussion of taxes on Social Security is part of a broader bill that could increase federal deficits by nearly $3.3 trillion from 2025 to 2034.