Latest news with #SocialSecurityWorks
Yahoo
7 days ago
- Business
- Yahoo
Social Security no taxes message on Trump bill raises eyebrows
President Trump's 'big, beautiful bill' is sending mixed messages about whether most Americans are required to pay federal income taxes on their Social Security benefits. 'It's a mixed bag for seniors, because some seniors will get some tax relief; the cost of that, though, is borne by the entire Social Security system,' Alex Lawson, executive director of left-leaning advocacy organization Social Security Works, told USA Today. The bill, which Trump signed into law on Saturday, included a $6,000 tax deduction for Americans 65 or older. After Congress passed the bill on Thursday, the Social Security Administration said the legislation 'delivers long-awaited tax relief to millions of older Americans.' 'The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples,' the Thursday press release said. 'Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.' However, policy experts are concerned that the bill does not include a provision to eliminate federal income taxes on Social Security benefits. 'There is no provision in the budget bill that directly 'eliminates' or even reduces taxes on Social Security benefits,' Howard Gleckman, senior fellow at the nonpartisan Tax Policy Center, told the Washington Post. Trump's bill offers a tax deduction of $6,000 to seniors making up to $75,000 individually, or $150,000 on a joint return. The deduction is lowered for incomes above that level and axed for seniors with individual incomes of more than $175,000, or $250,000 jointly. However, the new deduction for seniors is set to expire within a couple of years. The median income for seniors in 2022 was about $30,000. 'The people who benefit by definition have to be richer, and people who benefit the most are the richest people,' Bobby Kogan, senior director of federal budget policy at the Center for American Progress, told CBS News. Before the megabill's passing, 64 percent of seniors receiving Social Security income paid no tax on their Social Security due to exemptions and deductions, according to an estimate by Trump's Council of Economic Advisers. Under Trump's megabill, 88 percent won't be paying. Marc Goldwein, senior vice president of the nonpartisan Committee for a Responsible Federal Budget, told the Post that the rise is due to the bill's increase in 'the standard deduction for seniors, which, as a result, reduces the number of seniors who will pay taxes on their Social Security benefits.' Put simply, the new legislation will provide limited benefits for lower-income seniors because they already pay less in taxes. 'Lower-income earners benefit less than middle and upper-middle income households,' Garrett Watson, senior policy analyst at the Tax Foundation, a center-right think tank, told USA Today. 'It's been marketed as tax relief for seniors, but a lot of seniors are going to be surprised when they find out it doesn't apply to them,' he added. 'I'm getting asked all the time by folks what this actually means for their tax situation.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
7 days ago
- Business
- The Hill
Social Security no taxes message on Trump bill raises eyebrows
President Trump's 'big, beautiful bill' is sending mixed messages about whether most Americans are required to pay federal income taxes on their Social Security benefits. 'It's a mixed bag for seniors, because some seniors will get some tax relief; the cost of that, though, is borne by the entire Social Security system,' Alex Lawson, executive director of left-leaning advocacy organization Social Security Works, told USA Today. The bill, which Trump signed into law on Saturday, included a $6,000 tax deduction for Americans 65 or older. After Congress passed the bill on Thursday, the Social Security Administration said the legislation 'delivers long-awaited tax relief to millions of older Americans.' 'The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples,' the Thursday press release said. 'Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.' However, policy experts are concerned that the bill does not include a provision to eliminate federal income taxes on Social Security benefits. 'There is no provision in the budget bill that directly 'eliminates' or even reduces taxes on Social Security benefits,' Howard Gleckman, senior fellow at the nonpartisan Tax Policy Center, told the Washington Post. Trump's bill offers a tax deduction of $6,000 to seniors making up to $75,000 individually, or $150,000 on a joint return. The deduction is lowered for incomes above that level and axed for seniors with individual incomes of more than $175,000, or $250,000 jointly. However, the new deduction for seniors is set to expire within a couple of years. The median income for seniors in 2022 was about $30,000. 'The people who benefit by definition have to be richer, and people who benefit the most are the richest people,' Bobby Kogan, senior director of federal budget policy at the Center for American Progress, told CBS News. Before the megabill's passing, 64 percent of seniors receiving Social Security income paid no tax on their Social Security due to exemptions and deductions, according to an estimate by Trump's Council of Economic Advisers. Under Trump's megabill, 88 percent won't be paying. Marc Goldwein, senior vice president of the nonpartisan Committee for a Responsible Federal Budget, told the Post that the rise is due to the bill's increase in 'the standard deduction for seniors, which, as a result, reduces the number of seniors who will pay taxes on their Social Security benefits.' Put simply, the new legislation will provide limited benefits for lower-income seniors because they already pay less in taxes. 'Lower-income earners benefit less than middle and upper-middle income households,' Garrett Watson, senior policy analyst at the Tax Foundation, a center-right think tank, told USA Today. 'It's been marketed as tax relief for seniors, but a lot of seniors are going to be surprised when they find out it doesn't apply to them,' he added. 'I'm getting asked all the time by folks what this actually means for their tax situation.'
Yahoo
05-07-2025
- Business
- Yahoo
Unusual Social Security email touts Trump bill. Here's what to know.
Social Security beneficiaries are accustomed to getting occasional emails from the program about matters like a benefits statement, but many were perplexed to get a different kind of message from the Social Security Administration late in the evening on Thursday, July 3. "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 email, reviewed by USA TODAY, said. The message is referring to the legislative package of Trump's priorities for cuts to taxes and spending on social programs that was passed by the House of Representatives earlier that day. The agency also published a news release titled "Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors" that mirrored the email. Issuing an overtly political statement is unusual for the agency that oversees Social Security, which makes monthly payments to 73 million retirees, their survivors, and people with disabilities. "It's completely unprecedented," said Alex Lawson, executive director of Social Security Works, a left-leaning advocacy organization focused on retirement benefits. "It's an enormous breach of trust." Lawson contends that the email praising Trump's "Big, Beautiful Bill" violates the Hatch Act, a law against partisan political activity by federal government employees. The Social Security Administration did not immediately respond to inquiries seeking clarification. The White House referred USA TODAY's request to SSA. During his campaign, Trump promised to eliminate income taxes on Social Security benefits. Instead, the just-passed bill − which Trump will sign in the late afternoon on July 4 − creates a $6,000 federal income tax deduction for Americans 65 and older. Since Social Security benefits are often a large part of seniors' income, some portion of those benefits will now be untaxed for those who qualify for the deduction. "It reduces the amount of Social Security benefits subject to tax, but it's not just for Social Security," explains Garrett Watson, senior policy analyst at the Tax Foundation, a center-right think tank. 'This is a historic step forward for America's seniors,' said Social Security Commissioner Frank Bisignano, a former Wall Street executive appointed by Trump. '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." There are many Social Security recipients and seniors who won't get a tax cut, however. About 5% of retired Social Security beneficiaries are ages 62 to 64. There are also deceased workers' survivors and disabled workers who are younger than 65. Among those 65 and older, many have incomes below the standard deduction of $14,600 per person or $29,200 per couple, so they already aren't paying income taxes anyway. At the other end of the spectrum, the deduction phases out for individuals making more than $75,000 or couples earning more than $150,000. "Lower-income earners benefit less than middle and upper-middle income households," Watson said. On average, seniors in the bottom 20% income will save just 0.1% on their tax bill, according to the Tax Policy Foundation's analysis, about one-tenth of what those in the middle of the income distribution will save. "It's been marketed as tax relief for seniors, but a lot of seniors are going to be surprised when they find out it doesn't apply to them," Watson said. "I'm getting asked all the time by folks what this actually means for their tax situation." And while some will soon benefit from lower taxes, the lost tax revenue could trigger a future automatic benefit cut for all beneficiaries. That's because Social Security benefits aren't taxed like normal income. Instead of being used as general revenues, they go specifically into the trust funds that provide a backstop for Medicare and Social Security. The Social Security and Medicare Hospital Insurance trust funds were on track to be depleted by 2033, but now that date will be moved up to 2032, because the senior citizen tax deduction will lop an estimated $30 billion per year off the tax revenues those trust funds collect, according to the Committee for a Responsible Federal Budget. That, in turn, will trigger a future automatic benefit cut of 24% to all recipients, the centrist think tank projects. Those problems will only grow worse, Watson noted, if Congress renews, increases or makes permanent the senior tax deduction, when it expires in 2028. "It's a mixed bag for seniors, because some seniors will get some tax relief; the cost of that, though, is borne by the entire Social Security system," Lawson said. Critics are pouncing on the message arriving at a time when the Social Security Administration has been suffering from problems with customer service. The Trump administration has reduced the agency's staff and instituted new rules on identification for applicants, resulting in average wait times that have ballooned to 90 minutes. In June, the agency stopped making public real-time performance metrics about how long they will have to wait to reach a live person on the phone, and how long applications for new benefits take to be approved, USA TODAY reported on June 26. Multiple times, USA TODAY reporters called Social Security's 1-800 line they did not reach a live person before the line disconnected with no warning. Contributing: Sarah D. Wire This article originally appeared on USA TODAY: Unusual Social Security Administration email touts Big, Beautiful Bill
The Herald Scotland
05-07-2025
- Business
- The Herald Scotland
Unusual Social Security Administration email touts Big, Beautiful Bill
Issuing an overtly political statement is unusual for the agency that oversees Social Security, which makes monthly payments to 73 million retirees, their survivors, and people with disabilities. "It's completely unprecedented," said Alex Lawson, executive director of Social Security Works, a left-leaning advocacy organization focused on retirement benefits. "It's an enormous breach of trust." Lawson contends that the email praising Trump's "Big, Beautiful Bill" violates the Hatch Act, a law against partisan political activity by federal government employees. The Social Security Administration did not immediately respond to inquiries seeking clarification. The White House referred USA TODAY's request to SSA. A tax cut for some seniors During his campaign, Trump promised to eliminate income taxes on Social Security benefits. Instead, the just-passed bill - which Trump will sign in the late afternoon on July 4 - creates a $6,000 federal income tax deduction for Americans 65 and older. Since Social Security benefits are often a large part of seniors' income, some portion of those benefits will now be untaxed for those who qualify for the deduction. "It reduces the amount of Social Security benefits subject to tax, but it's not just for Social Security," explains Garrett Watson, senior policy analyst at the Tax Foundation, a center-right think tank. "This is a historic step forward for America's seniors," said Social Security Commissioner Frank Bisignano, a former Wall Street executive appointed by Trump. "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." There are many Social Security recipients and seniors who won't get a tax cut, however. About 5% of retired Social Security beneficiaries are ages 62 to 64. There are also deceased workers' survivors and disabled workers who are younger than 65. Among those 65 and older, many have below the standard deduction of $14,600 per person or $29,200 per couple, so they already aren't paying income taxes anyway. At the other end of the spectrum, the deduction phases out for individuals making more than $75,000 or couples earning more than $250,000. Less benefit for those with lower incomes "Lower-income earners benefit less than middle and upper-middle income households," Watson said. On average, seniors in the bottom 20% income will save just 0.1% on their tax bill, according to the Tax Policy Foundation's analysis, about one-tenth of what those in the middle of the income distribution will save. "It's been marketed as tax relief for seniors, but a lot of seniors are going to be surprised when they find out it doesn't apply to them," Watson said. "I'm getting asked all the time by folks what this actually means for their tax situation." Social Security's long-term funding problem And while some will soon benefit form lower taxes, the lost tax revenue could trigger a future automatic benefit cut for all beneficiaries. That's because Social Security benefits aren't taxed like normal income. Instead of being used as general revenues, they go specifically into the trust funds that provide a backstop for Medicare and Social Security. The Social Security and Medicare Hospital Insurance trust funds were on track to be depleted by 2033, but now that date will be moved up to 2032, because the senior citizen tax deduction will lop an estimated $30 billion per year off the tax revenues those trust funds collect, according to the Committee for a Responsible Federal Budget. That, in turn, will trigger a future automatic benefit cut of 24% to all recipients, the centrist think tank projects. Those problems will only grow worse, Watson noted, if Congress renews, increases or makes permanent the senior tax deduction, when it expires in 2028. "It's a mixed bag for seniors, because some seniors will get some tax relief; the cost of that, though, is borne by the entire Social Security system," Lawson said. Email comes amid customer-service 'crisis' Critics are pouncing on the message arriving at a time when the Social Security Administration has been suffering from problems with customer service. The Trump administration has reduced the agency's staff and instituted new rules on identification for applicants, resulting in average wait times that have ballooned to 90 minutes. In June, the agency stopped making public real-time performance metrics about how long they will have to wait to reach a live person on the phone, and how long applications for new benefits take to be approved, USA TODAY reported on June 26. Multiple times, USA TODAY reporters called Social Security's 1-800 line they did not reach a live person before the line disconnected with no warning. Contributing: Sarah D. Wire
Yahoo
03-07-2025
- Health
- Yahoo
Unpacking claims nursing homes say they will 'close their doors' if GOP passes budget bill
A June 2025 survey by the American Health Care Association (AHCA) found that 27% of nursing home providers said they would have to close facilities if Medicaid funding was reduced in the 2025 congressional budget bill One Big Beautiful Bill Act. However, the survey represented responses from 363 nursing home providers about hypothetical actions they would take, not confirmed closure plans. The survey was conducted by a trade association representing nursing home interests, to highlight industry concerns about proposed federal Medicaid cuts. House Republicans have proposed approximately $880 billion in Medicaid cuts over the next decade in the bill, while the Senate passed its own version with a projected $930 billion Medicaid reductions. In late June 2025, after U.S. House Republicans passed (archived) budget legislation proposing cuts to Medicaid, social media posts spread claiming that many nursing homes would be forced to close if the legislation advanced. For example, on June 28, U.S. Sen. Elizabeth Warren, D‑Mass., wrote (archived) on Facebook: " BREAKING: 1 in 4 nursing homes say they will be forced to close if Republicans pass Trump's Big Beautiful Bill. No grandma should be kicked out of her nursing home so that Mark Zuckerberg can buy another Hawaiian island." (Sen. Elizabath Warren/Facebook) The post had received more than 140,000 reactions and 8,200 shares as of this writing. Similar claims appeared on Facebook (archived) from Social Security Works, an American political advocacy group that calls for expansion of Social Security, as well as on X (archived) from Jesse Ferguson, former deputy press secretary for Hillary Clinton's 2016 campaign. The posts referenced survey data from the American Health Care Association (AHCA), a nursing home industry trade group. According to the organization's June 2025 "Provider Insights: Medicaid" survey of 363 nursing home providers, 27% indicated they would "close facility(ies)" if the federal government reduced Medicaid funding under the bill. The survey asked: "If the federal government reduces Medicaid funding, what changes would your facility(ies) have to make?" Respondents could select multiple options. Beyond the 27% who said they would close facilities, 55% said they would reduce their Medicaid census (lowering the number or percentage of residents whose care is paid for by Medicaid), 58% said they would reduce current staff, and 77% said they would defer modernization efforts. Snopes attempted to contact AHCA for additional details about the survey methodology and respondent characteristics. We have not yet received a response as of publication. The AHCA survey provides context for why nursing home operators have expressed concern about potential Medicaid cuts. According to the survey, 80% of nursing homes were operating at a loss or with narrow profit margins of 3% or less. Specifically, 30% reported operating at a loss, while 50% reported operating with total margins between 0-3%. Medicaid serves as the primary revenue source for nursing homes, accounting for 59% of their income on average, according to the survey. However, 62% of providers report that Medicaid reimburses less than 80% of their actual costs of care, with 24% saying Medicaid covers less than 60% of costs. The survey found that 79% of nursing home providers were "extremely concerned" about potential Medicaid reductions, with an additional 13% "moderately concerned." Meanwhile, a June 2025 analysis by Brown University School of Public Health researchers Vincent Mor and Fangli Geng commissioned by Senate Democrats identified 579 nursing homes nationwide at high risk for closure. According to the study, these facilities represent approximately 4% of all U.S. nursing homes and met three criteria: over 85% of patients on Medicaid, occupancy rates below 80%, and quality ratings of 1-2 stars on the Centers for Medicare & Medicaid Services (CMS) Five-Star Quality Rating System. The facilities were distributed across 45 states, with Illinois having 93 high-risk facilities, Texas 66, Ohio 41, Missouri 39, and Georgia 37. Regarding potential impacts of Medicaid cuts, the researchers wrote: It is difficult to say for sure, but a payment freeze lasting more than a year could nearly double the closure rate. People tend to enter nursing homes that are close to their homes or near where their families live, so closures often result in greater travel for residents and their families. In many communities, nursing homes are a major employer of low-skilled workers, particularly in rural and exurban areas. When they close, those in the community have to look further afield for employment, and in rural areas, discharged workers may need to relocate. The Brown analysis focused on facilities currently meeting specific risk indicators, while the AHCA survey asked nursing home operators about their anticipated responses to hypothetical funding reductions. The researchers noted that facilities with high Medicaid populations would be "differentially adversely affected" by payment freezes since they have limited non-Medicaid revenue sources. On May 22, 2025, House Republicans passed the One Big Beautiful Bill Act, a budget reconciliation package that includes major changes to Medicaid. According to the Congressional Budget Office, baseline federal Medicaid outlays were projected to total $8.2 trillion over the next 10 years. Independent analyses, including those by the Kaiser Family Foundation (archived) and State Health and Value Strategies, estimated that the House legislation would reduce Medicaid spending by approximately $880 billion over that period. The Senate approved its version, with deeper projected reductions of around $930 billion, on July 1, 2025. As of this writing, the legislation was back in the House, which must decide whether to adopt the Senate-passed version or negotiate a final bill through a conference committee. American Health Care Association. "Provider Insights: Medicaid." June 2025. Accessed 1 July 2025. Congressional Budget Office. "Re: Mandatory Spending Under the Jurisdiction of the House Committee on Energy and Commerce." 5 Mar. 2025. Accessed 1 July 2025. House Budget Committee. "What They Are Saying: President Trump Congratulates House Republicans on Passage of the One Big Beautiful Bill Act." 27 May 2025. Accessed 1 July 2025. Burns, Alice. "The Math is Conclusive: Major Medicaid Cuts Are the Only Way to Meet House Budget Resolution Requirements." Kaiser Family Foundation. 7 Mar. 2025 Accessed 1 July 2025. Mor, Vincent and Fangli Geng. "Response to Senate Finance Nursing Home Request." Brown University School of Public Health. 23 June 2025. Accessed 1 July 2025. State Health and Value Strategies. "Medicaid Provisions in the House Budget Reconciliation Bill." 22 May, 2025. Accessed 1 July 2025. U.S. Congress. "H. Con. Res. 14 - Establishing the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034." 119th Congress. Accessed 1 July 2025. U.S. Senate Committee on Finance. "Wyden Statement on New CBO Numbers Showing More Than $930 Billion in Medicaid Cuts in New Senate Draft." 28 June, 2025. Accessed 1 July 2025.
