Posted on 06/12/2025 1:00:11 PM PDT by eastexsteve
WASHINGTON, D.C. – The One, Big, Beautiful Bill fulfills President Trump’s promise to seniors and provides welcome tax relief after four years of inflation robbed their retirement under President Biden. Each senior will receive an additional bonus of $4,000 to the standard deduction, putting more money in the pocket of millions of low- and middle-income seniors.
(Excerpt) Read more at waysandmeans.house.gov ...
Agreed. It’s actual screwing of the elderly who worked their whole lives only to have much of their savings and pensions stolen thru the income tax system. Our neighbors put it clearly— had they realized how much the govt was gonna take away from them in their old age, they would’ve spent it all and gone on welfare when they couldn’t work any longer It’s all very demotivating. No wonder so many young folks are not rolling to fork much anymore
According to Natalie Winters they are also looking to make cuts to Medicare Advantage. Biden cut them a whole lot last year.
Trump promised they would not be doing that. Notice how the little guy always gets screwed after Congress gets done with it.
I bet that money will materialize to Ukraine and Israel wars though.
And now Trump is wavering on deporting many illegals. WTH?
From what I could tell, three senior-related tax proposals were being discussed.
1. No tax on social security.
2. A $4000 tax credit for seniors.
3. A $4000 tax deduction for seniors.
The last is the worst. And it looks like that’s the one we’re gonna get.
So you eliminate $4,000 from your taxable income. If you are in the 20% tax bracket that means you save The 20% you would have paid on $4,000 or $800. Where are they getting a tax cut of twice that?
And the seniors who were more diligent and successful about saving during their working years are likely to have a ZERO tax deduction once the phaseout on income is implemented.
Long story short, They found out they couldn’t amend tax law with this bill so they threw in a $4000 SSN Tax credit to make up for the tax that would have been paid.
The $4000 deduction is *per* senior. The $1650 quote was for a senior *couple* in Florida.
But a deduction and not a credit, so why not at least make it a credit and not a deduction
Well, $1650 is a start but not anywhere close to no tax on SS.
There are obstacles that prevent the no tax on Social Security benefits. As a compromise, the $4,000 tax break is on the table.
And most seniors will get the same savings amount as they would have if the no SS tax provision was possible.
Complaining that we were being ripped off is false.
Also, it’s not a tax “deduction”. It’s an income deduction, and the tax savings depends on the Federal tax bracket this is applied to. So, a LOT less than $4000 tax savings per senior. A *LOT* less.
Probably will get flamed here but the generation going on/on social security have largely been responsible for where we are now.
It is time to end all of the gimmicks and go to a flat tax with a single exclusion amount. Everyone pays 10% of income over and above x thousands dollars. Everyone has to have skin in the game and pay a share and all of the gaming of the system.
But the $4000 not a tax credit. It’s a tax deduction. With a tax credit, you deduct the amount directly from the taxes you owe. But with a tax deduction, you deduct the amount from your taxable income.
Big difference.
Disclaimer: That’s my understanding. If I’m wrong here, I hope someone will offer a correction.
I bet they don’t go with a $4000 tax credit. I bet it will be an expansion of the standard deduction for seniors. And if you happened to have saved a lot during your working career and was successful in creating a comfortable (or more) retirement, expect that amount to quickly approach ZERO.
The standard deduction is so high already that this is virtue signaling.
And you better make it a “refundable” credit.
It probably won’t survive Reconciliation anyways............
Married filing joint would double that.
Not only that, but the deduction phases out/away with modestly higher senior incomes.
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