President Trump’s “Bada, Beautiful Bill” mixed message is sending whether most Americans need to pay federal income tax on their social security benefits.
“This is a mixed bag for the superiors, as some seniors will get some tax relief, however, that cost, however, is borne by the entire social security system,” Alex Lawson, Left-Jhukav Advocacy Organization Organization Executive Director of Social Security Affairs, Alex Lawson. Told USA today.
Bill, which Trump signed in the law on Saturday, $ 6,000 involves tax deduction 65 or older for Americans. After the bill was passed on Thursday, the Social Security Administration said the law “gives relief to millions of old Americans for a long time.”
“The new law includes a provision that eliminates federal income tax on social security benefits for most beneficiaries, provides relief to individuals and joints,” It was said in the press release on Thursday“Additionally, it provides an increased deduction for taxpayers of 65 years and above, ensuring that retired people can keep what they have earned.”
However, policy experts are concerned that the bill does not include provision to abolish federal income tax on social security benefits.
“The budget bill has no provision that directly terminates’ or even reduces taxes on social security benefits,” said Senior Fellow Howard Glackman of Nonpartison Tax Policy Center said. Told Washington Post.
Trump’s bill individually offers a tax deduction of $ 6,000 to senior citizens up to $ 75,000, or up to $ 150,000 on joint returns. The cuts have been reduced to income above that level and for superiors with individual income of more than $ 175,000, or $ 250,000 jointly. However, the new deduction for seniors is ready to end within a few years. Average income for seniors In 2022 there was around $ 30,000.
“People who benefit from the definition have to be rich, and those who are most beneficial are the richest people,” they are Bobby Kogan, Senior Director of Federal Budget Policy at Bobby Kogan, Center for American Progress Center, Bobby Kogan, Bobby Kogan, in American Progress Center, Told CBS News.
Prior to the death of the megabil, 64 percent of the seniors who received social security income did not pay any tax on their social security due to discounts and cuts, an estimated By the Council of Economic Advisors of Trump. Under Trump’s megabil, 88 percent will not be paid.
Mark Goldwin, senior vice president of the Nonpartison Committee for a responsible federal budget, told The Post that the increase is “due to the increase of the bill in standard cuts for seniors, resulting in the number of seniors who will pay taxes on their social security benefits.”
Simply say, there will be a new lawProvide limited benefitsFor lower income seniors because they already pay less in taxes.
“Low-income earnings have less benefits than in moderate and high-medium income houses,” Garat Watson, Tax Foundation, A Center-Dan Senior Policy Analyst in Think Tank, Garat Watson, a center-right think tank, Told USA today.
He said, “This has been marketed as tax relief for seniors, but a lot of seniors will be surprised when they discovers that it does not apply to them,” he said. “I am being asked by people all the time what it really means for their tax status.”
