Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors & my thoughts

The Social Security Administration (SSA) is celebrating the passage of the One Big, Beautiful Bill, a landmark piece of legislation that delivers long-awaited tax relief to millions of older Americans.

The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation's economy.

“This is a historic step forward for America’s seniors,” said Social Security Commissioner Frank Bisignano. “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned."

The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.

Social Security remains committed to providing timely, accurate information to the public and will continue working closely with federal partners to ensure beneficiaries understand how this legislation may affect them.

---

Yes, this is a BIG WIN for seniors who have been paying taxes on their Social Security. I've certainly written and talked about this for a few years now.

So why aren't I more excited?

I don't think we've counted the real costs of passing some of these extra tax promises.

Trump made some MAJOR promises in his 2024 election campaign:

• Eliminate tax on social security benefits

• No tax on tips

• No tax on overtime

• Abolish the IRS and eliminate income taxes

Unless more revenues come in... what goes down... must come back up.

I also often talk about the difference between tax economics and tax policy. The "big beautiful bill" is tax policy... but unless we do far more for tax economics, one day it MUST go back up.

The only question will be... WHO will pay and how much?

What about the tariff income from other countries?

I did hear President Trump say that there was an additional $88 billion in new revenues because of tariffs? That's $1 TRILLION per year if it continues!

That's not bad... but how big is this national debt again? We had just crossed $37 trillion not too long ago.

There's more work to do.

Granted, we're still less than six months into Trump's presidency and he's certainly shaking things up!

However, unless more is done, I'm still afraid that Trump made promises that he couldn't keep.

Only time will tell. What does 'permanent' mean?

One thing we've also learned is that 'permanent' is only as permanent as pencil or the current administration.

My friend and fellow financial industry speaker David McKnight shared his thoughts on 'permanence' in a video yesterday: