Donald Trump announced his victory with the ‘big, beautiful bill’ as he kicked off the yearlong celebration of 250 years of America. During an event in Iowa held on Thursday, July 3, the 79-year-old President proudly announced that he fulfilled his campaign promise of eliminating taxes on social security.
As he took the stage at the Iowa State Fairgrounds wearing a bright red colored tie and matching cap that read ‘USA’, Trump declared, “Just as I promised, we’re making the Trump tax cuts permanent and delivering no tax on tips, no tax on overtime, and no tax on Social Security for our great seniors.”
.@POTUS: “Just as I promised, we’re making the Trump Tax Cuts permanent, and delivering NO TAX ON TIPS, NO TAX ON OVERTIME, and NO TAX ON SOCIAL SECURITY… very importantly for Iowa, this bill rescues over 2 million family farms from the so-called estate tax, or the Death Tax.” pic.twitter.com/VndTf9Iu9X
— Rapid Response 47 (@RapidResponse47) July 4, 202
Though Trump’s statements suggest complete elimination of taxes on social security, it is sadly not the case. As per an official White House analysis from the Council of Economic Advisers, “88% of seniors receiving Social Security benefits will pay no tax on their benefits.”
In June, the White House explained that “The One Big Beautiful Bill (OBBB) delivers historic tax relief to seniors, with a new tax deduction that, combined with other deductions, ensures the average Social Security beneficiary will pay zero taxes on Social Security.”
The newly enacted tax measures provide seniors with a deduction of $6,000 for individuals and $12,000 for couples, effectively lowering taxable income. However, these deductions begin to phase out at earnings above $75,000 for individuals and $150,000 for couples, ultimately disappearing for those with incomes exceeding $175,000 and $250,000, respectively. Critics argue that the benefits primarily favor higher-income seniors, leading to concerns about fairness across generations.
Critics have also pointed out that the measure only provides temporary tax deductions rather than the complete repeal of taxes. It’s also important to note that the tax break will expire at the end of Trump’s second term in 2028.
The 2017 Trump tax cuts’ individual provisions were set to expire at the end of 2025, but the “One Big Beautiful Bill” passed by Congress on July 3, 2025, makes the tax rates and brackets permanent. However, new deductions for tips, overtime, and Social Security are temporary,…
— Grok (@grok) July 4, 2025
Tax policy experts have also raised concern about the same. Garrett Watson, from the Tax Foundation, highlighted that while the deduction offers some relief, it does not eliminate taxation on Social Security benefits as claimed. The analysis mentions that the deduction would mostly benefit those with higher income.
Garrett Watson, director of policy analysis at the Tax Foundation, told Associated Press, “While the deduction does provide some relief for seniors, it’s far from completely repealing the tax on their benefits.”
Someone wrote on X, “Trump you don’t know what’s in the bill. It did not eliminate taxes on SS.”
Another added, “You are misrepresenting the bill, and when people realize it they’ll be pissed, but your agenda is deception anyway so it suits.”
Trump you don’t know what’s in the bill. It did not eliminate taxes on SS
— CW (@SoCarTider) July 4, 2025
While announcing his victory with the megabill, Trump took a dig at the Democrats. He said, “Not one Democrat voted for us. They wouldn’t vote only because they hate Trump, but I hate them too. You know that? I really do—I hate them. I cannot stand them, because I really believe they hate our country.”
Meanwhile, the Social Security Administration has welcomed Trump’s OBBB with open hearts. Social Security Commissioner Frank Bisignano said in a statement to the press, “This is a historic step forward for America’s seniors. 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.”
Trump’s bill passed the legislation in a 218-214 vote in the House. Trump will now sign the bill on Friday during a ceremony at the White House. The White House has stated that 51.4 million seniors (88% of all seniors receiving social security income) will benefit from Trump’s bill.
