The Social Security Administration (SSA) is taking pride in what it describes as a “historic step forward” for elderly Americans as Donald Trump gets ready to sign the One Big Beautiful Bill Act in a grand event on Friday. Others warn that under the bill’s patriotic packaging, there is a fiscal time bomb that includes significant Medicaid cuts and a mounting federal deficit.
Yet, the agency cheers the introduction of the tax break for seniors.
The bill, which was narrowly approved by the House on Thursday (218–214), would take away income taxes on Social Security for 88% of current recipients and offer a $6,000 tax deduction for individuals above the age of 65 with incomes under $75,000, or $150,000 for couples. According to SSA Commissioner Frank Bisignano, the regulation is a “landmark” that will reduce seniors’ cost of living and fulfill Trump’s promise to protect their retirement funds.
That said, Democrats, health advocates, and even some Republicans have spoken out against the bill firmly, calling it a Trojan horse that cuts the safety net for millions of Americans while making up for tax breaks for the most wealthy.
Social Security Applauds New Tax Break
The primary idea of Social Security’s full backing was that older people making less than $75,000 ($150,000 for couples) would be given a substantial deduction, basically covering their Social Security earnings from taxes starting in 2026.
If it isn’t stretched out this deduction will end in 2028 and phase out at higher income levels.
In an official statement, Bisignano announced, “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. [The bill] helps ensure that seniors can better enjoy the retirement they’ve earned.”
Frank Bisignano is the guy who Trump has hand-picked to gut Social Security from the inside out. I’m voting no on his nomination. pic.twitter.com/qi5GQzJIas
— Senator Brian Schatz (@SenBrianSchatz) May 6, 2025
On X (formerly Twitter), the White House repeated the same opinion, saying that 51.4 million seniors, or roughly 88% of all Social Security recipients, would not have to pay taxes on the money they receive as a result of the change in law.
But experts point out that this “big, beautiful” help is not long-term or common to everyone. Karla Dennis, a tax strategist, told Newsweek: “We need lasting change for seniors, not just quick fixes or one-time payments (…) The way Social Security is taxed today doesn’t match how people earn income in retirement today.”
Critics Slam Medicaid Cuts and Deficits
Despite Donald Trump’s claim in Iowa that the bill is “the biggest tax cut in history,” the Congressional Budget Office projects that the bill will cost $3.3 trillion in extra deficit spending over 10 years. This is brought about by the fact that the bill cuts $1.2 trillion from Medicaid and other safety nets while bringing back tax cuts for higher earners that were put in place under Trump.
All Democrats opposed it. During his record-breaking 8-hour and 44-minute speech, House Minority Leader Hakeem Jeffries called it “an extraordinary assault on the health care of the American people.” Rep. Josh Riley exploded, “Don’t tell me you give a s— about the middle class when all you are doing is s——g on the middle class.”
BREAKING: Hakeem Jeffries just set the record for the LONGEST magic minute speech in history. Jeffries has spent more than eight hours highlighting who will be hurt by this awful bill. Retweet to thank Hakeem Jeffries for standing up to MAGA! pic.twitter.com/KP1iDCTkWf
— Trump Lie Tracker (Commentary) (@MAGALieTracker) July 3, 2025
Some Republicans were unsure, too. Rep. Brian Fitzpatrick stayed true to his pledge not to support Medicaid cuts, while Rep. Thomas Massie opposed it because of deficit issues.
Despite the tiny margin and intraparty differences, Trump upheld that the bill was “very easy to get them to a yes.”
While he has made clear time and time again that he finds deep cuts uncomfortable, he continues to back the final version, which is set to become law at 5 p.m. ET on Friday.
What’s Next?
The tax break is an ideal change for seniors, as Social Security said. Yet, it is income-based, temporary, and makes up an overall scheme that many say compromises the very initiatives that older Americans count on.
BREAKING: In an unbelievable moment, Donald Trump blatantly lies, falsely claiming that his bill does not cut Medicaid. It does, and will devastate millions of Americans who depend on it.
Spread this everywhere. pic.twitter.com/xojctBVkzE
— Really American 🇺🇸 (@ReallyAmerican1) June 26, 2025
The CBO predicts that by 2034, 11.8 million Americans will be impacted by the Medicaid cuts. Trump’s team claims that revenue growth and border patrol need such sacrifices. Critics say they are patriotic, slogan-clad incentives for the rich.
The SSA is celebrating, but the long-term consequences and human cost of this “big, beautiful” bill have barely become obvious.
