15 hours ago
US Social Security Administration praises Trump's tax bill, critics call it ‘blatant misinformation'
After the US Congress passed the tax cut and spending bill and President Donald Trump signed it to become 'One Big, Beautiful Bill Act', an email was sent by the Social Security Administration (SSA) which claimed the new spending bill has eliminated taxes on benefits for most recipients, but the critics have dubbed it 'misleading' and 'lie'.
The reconciliation bill, which President Trump called 'One big, beautiful bill', was signed on July 4 during Independence Day celebrations after the Republicans in the Senate and House of Representatives passed it. The provisions in the act reportedly include stripping people off their health insurance, slashing food aid for the poor, revoking clean energy development which would trigger an increase in national debt by trillions of dollars.
The email circulated by apolitical SSA claims the bill 'eliminates federal income taxes on social security benefits for most beneficiaries, providing relief to individuals and couples.' Commissioner of the SSA, Frank Bisignano, said that nearly 90% of social security beneficiaries will no longer pay federal income tax on their respective benefits.
Unbelievable. I was a deputy commissioner of the Social Security Administration. Appointed by President Biden. The agency has never issued such a blatant political statement. The fact that Trump and his minion running SSA has done this is unconscionable.
— Jeff Nesbit (@jeffnesbit) July 3, 2025
'This is a historic step forward for America's seniors. 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,' Bisignano said, The Guardian reported.
However, in one of the biggest cache 22 situations for the SSA, Trump's spending bill does not essentially eliminate federal taxes on social security because the bill was passed in the Congress via reconciliation process, to avoid the pushback from the Democrats.
Though Trump's package does include a temporary tax deduction of $6,000 for people aged 65 and above and $12,000 for married seniors. Last month, Trump's Council of Economic Advisers argued that 9 in 10 seniors would not pay any federal tax on their respective social security benefits.
A former SSA official, Jeff Nesbit, who served under Republican and Democratic presidents posted on X, 'The agency has never issued such a blatant political statement. The fact that Trump and his minion running SSA has done this is unconscionable.'
