Big, beautiful bill gives some seniors a break but excludes poorest

The "big, beautiful bill" features a new tax break for older Americans who pay taxes on Social Security income. But there's a significant catch.Why it matters: The break leaves out the poorest seniors — who already don't pay Social Security taxes —and the very rich ones, too.How it works: Both the House and Senate bills include an increased tax deduction for tax filers age 64 and older. In the Senate version, the new deduction is $6,000 for individuals and $12,000 for couples.The deduction starts phasing out for those who earn over $75,000 ($150,000 for couples), and phases out completely at $175,000 for individuals and $250,000 for couples, in the Senate version.The break expires in 2028 when President Trump leaves office, as do a few other White House priorities in the bills, including no tax on tips, no tax on overtime, and no tax on auto loan interest.What they're saying: "This amounts to the largest tax break in American history for our nation's seniors," per a report out earlier this week from the White House Council of Economic Advisers.Yes, but: Most seniors — 64% of them — don't pay taxes on Social Security, according to the White House's own analysis.Those who can't afford the taxes already don't pay. This break targets most, but not all, of the rest.Between the lines: Trump promised to eliminate taxes on Social Security income. Lawmakers couldn't pull that off entirely, given the constraints of passing a reconciliation bill and changing Social Security law.This break comes close. After adding the recipients of the new tax break, 88% of seniors wouldn't pay Social Security tax, per the White House."The One Big Beautiful Bill delivers on President Trump's promise of no tax on Social Security," White House spokeswoman Abigail Jackson says in a statement, noting the analysis by the Council of Economic Advisers.Zoom out: For those upper-middle class folks who pay taxes on retirement benefits, this is a "substantial tax break," says Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, a nonpartisan group that advocates for fiscal responsibility.For the several million senior citizens who live in poverty, and already don't pay taxes on Social Security, this doesn't help.The bill would also accelerate Social Security and Medicare insolvency by a year, to 2032, per an analysis from the group.The bottom line: Seniors in the U.S. overall are doing great financially right now, sitting on assets that have soared in value in recent years."As a whole seniors in this country are the wealthiest cohort in the history of the known universe," Goldwein says.If this bill passes, they'll get to keep a little bit more.Editor's note: This story has been updated with additional details.

Comments

World news

Three dead and ten hurt after gunmen start firing randomly in Philadelphia neighborhood

Independent

Jeffrey Epstein final prison video released as FBI probe concludes paedophile financier didn’t keep 'client list' and wasn't murdered

about 2 hours ago

What happened in the Texas floods? Everything we know

Evening Standard

Comments

Similar News

Fox got a big Trump bump — now comes the hard part

How a few rich dairy farmers are sabotaging Canada’s big, beautiful trading future: Full Comment podcast

That Social Security email about the "big, beautiful bill," explained

The Economic Consequences of the Big Odious Bill

Big-box stores could help slash emissions and save millions by putting solar panels on roofs. Why aren't more of them doing it?

We set a big chunk of California wilderness on fire. You're welcome

How Trump's big budget bill would jump-start his immigration agenda

Trump's 'big, beautiful' megabill wins final approval after marathon overnight session

So big, so beautiful: Fox News ignores the critics and champions Trump’s bill

‘Big metal rollercoasters beat AI’: Legoland owner’s boss on the thrill of theme parks in a tech world

U.S. House Narrowly Passes Trump’s ‘Big, Beautiful Bill’

Trump Scores Win in Passing His ‘Big, Beautiful Bill’

Trump’s “Big Beautiful Bill” Leaves the Congressional Budget Office Battling for Relevance

Senate's "big, beautiful bill" would add $3.3 trillion in new debt: CBO

Retiring GOP senator savages Medicaid cuts in Trump's "big, beautiful bill"

GOP breaks record for longest House vote with "big, beautiful bill"

House passes Trump's "big, beautiful bill" after stamping out GOP rebellion

Where Trump's "big, beautiful bill" could hit SNAP benefits hardest

Inside Hakeem Jeffries' record-breaking decision to filibuster Trump's "big, beautiful bill"

House members brave weather, medical hurdles to vote on Trump's "big, beautiful bill"

World news

Three dead and ten hurt after gunmen start firing randomly in Philadelphia neighborhood

Tesla shares slump amid Elon Musk’s America Party and President Trump drama

Elon Musk calls DOJ findings of no Epstein ‘client list’ the ‘final straw’

Celebrity birthdays for the week of July 13-19

Jeffrey Epstein final prison video released as FBI probe concludes paedophile financier didn’t keep 'client list' and wasn't murdered

What happened in the Texas floods? Everything we know

The London Standard: Best Pictures of the Day from around the world

Labour needs money from somewhere – is a wealth tax the answer? The i Paper writers’ verdict

HS2 warns firms across 140-mile route after supplier sacked over ‘tax fraud’ claims

England have backed themselves into a corner over Zak Crawley

The support SEND children receive across Europe – and how the UK compares

How to protect your pension from Reeves’s plan to overhaul system

I won Euro 2022 with the Lionesses – we have to park it now

Top South African official accuses police minister of colluding with crime syndicates

‘Epstein client list’ doesn’t exist, feds say, despite Musk’s claim that Trump is on it

Who are the Brits still imprisoned in Dubai after teenager Marcus Fakana released?

‘Unimaginable tragedy’: Texas camp speaks out after 27 campers and counselors die in flooding

Trump taken to court over deportations of pro-Palestinian student protesters

Three people fighting for their lives and 21 others injured after horror bee attack

What is Brics? Trump threatens 10 per cent extra tariff over 'anti-American' policies

Hero sniffer dog killed by ‘cowards’ who gave him sausages with nails in them

Where temperatures could soar above 30°C in third heatwave of the year

Arsenal’s new ‘star boy’ holds all the cards

Trump and Musk’s break-up enters the anger stage – and Tesla stocks are collateral

How 7/7 changed the intelligence services forever

No 10 delayed SEND reforms in spring over fears of Labour rebellion

Mortgage price war continues as two major lenders make further cuts

China Isn’t Ready to Replace USAID

Amid Economic Woes, China’s Public Still Supports the CCP

Texas summer camp says 27 dead after catastrophic flooding

EU commission chief von der Leyen faces a no-confidence vote this week

Russia fires over 100 drones at Ukraine as Kremlin dismisses transport chief after travel chaos

U.S. envoy receives Lebanese government's response to Hezbollah disarmament proposal

Switzerland indicts 2 men on terrorism-related charges

First picture of fatal death cap mushroom meal revealed after woman found guilty of murders

Trump’s tariff deadline on countries weighs down global shares

Here’s how to clean summer sports gear like a pro

China sees record temperatures as students shelter from heat wave

Trump, Netanyahu set to meet as Israel and Hamas discuss ceasefire

Handy home gadgets that *really* work

Texas weather forecast: More rain and thunderstorms predicted after flash floods kill at least 82 people

Israel and Hamas are inching toward a new ceasefire deal for Gaza. This is how it might look

Explosion tears roof off Domino’s Pizza after car crashes into restaurant

Russia fires over 100 drones at Ukraine as Kremlin dismisses transport chief after travel chaos

Trump threatens extra 10% tariff on countries with ‘anti-American policies’

Trial to begin for man charged with decapitating father and posting gory video

Moment entire cabin full of people swept downriver in Texas flooding

Greece orders workers to down tools as another heatwave takes hold

Australian state to set up anti-hate task force after Melbourne synagogue arson

Man found dead inside 28ft python after being crushed and eaten

I was a benefits assessor – I had to deduct points if people had ‘full use of their arms’

My friend is pregnant and it’s set an emotional bomb off inside of me

Four unanswered questions after woman guilty of mushroom killings

Wimbledon umpire at centre of ‘stolen’ point storm left off match list

I left the UK for Poland – I’m mortgage-free and my quality of life is far better

How much money a wealth tax could raise – and would the super-rich leave?

Who was Nadine Aburas, and how long was Sammy Almahri jailed for her murder?

Handy home gadgets that really work

The repressive tool behind Trump’s latest immigration crackdown