The Social Security Administration (SSA) and President Donald Trump claimed Thursday the president’s domestic policy bill will “eliminate” taxes on Social Security, but that’s not quite accurate: while the bill does give a new tax break for seniors, it’s purposely not tied to their benefits—though the legislation still could speed up Social Security’s insolvency.
The SSA sent a mass email to Social Security recipients celebrating the passage of the spending bill, according to The Washington Post and various social media reports, which included a press release that claims the bill “eliminates federal income taxes on Social Security benefits for most beneficiaries.”
Trump also repeated claims Thursday evening that the bill eliminates taxes on Social Security—a campaign promise he made before the election—saying at a rally in Iowa that the bill delivered “no tax on Social Security for our great seniors.”
The claims echo a campaign promise of Trump’s that would be hard to actually enact, since changes to Social Security benefits must get 60 votes in the Senate.
In actuality, the bill does not make any direct changes to taxing of Social Security benefits, as senators are not allowed to make changes to Social Security through the reconciliation process, which was used to pass the spending bill and allows budget-focused policies to pass with only a simple majority of votes.
The bill does provide an enhanced tax deduction for senior citizens ages 65 and older,...
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