House Republicans have taken a step towards fulfilling a commitment of the Trump administration, that of reducing the tax burden on Social Security benefits for the elderly. This promise, however, is not explicitly executed in the legislation passed early Thursday morning, labelled H.R. 1. Nevertheless, an ‘enhanced deduction for seniors’ is featured in the bill.
As per the statement of the Ways and Means Committee Chairman Jason Smith, R-Mo., during the House debate on the bill, the legislation aims to lessen the tax liability for low and middle-income seniors on Social Security through an increase in their standard deduction. This, he claims, is a delivery on President Trump’s promise.
When questioned about the alignment of this bill with President Trump’s campaign promise of no taxes on Social Security, White House press secretary Karoline Leavitt maintained that the bill indeed caters to the seniors’ tax concerns. She highlighted that the bill allows seniors to retain more of their Social Security payments, thereby putting more money into their pockets.
According to the bill, which is now destined for the Senate, an extra standard deduction of up to $4,000 per individual aged 65 and over will be provided from 2025 to 2028. However, this amount is subject to reduction for married seniors filing jointly with a modified adjusted gross income of $150,000 and for those earning $75,000.
This development follows earlier reports that during his July campaign, then-candidate Trump pledged tax cuts for older Americans, stating emphatically on Truth Social that “SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!” However, the implementation of this principle poses a challenge, as taxes on Social Security benefits help finance the program itself.
Upon the bill’s passage, Smith stated, “We are delivering President Trump’s promise of no tax on tips, overtime, auto loan interest, and tax relief for seniors, which will put more money in the pockets of millions of Americans every year.” However, it remains to be seen if the bill garners similar support in the Senate and becomes a law.