At age 41, Senator Joe Biden knew he would never be dependant on Social Security, so he saw seniors as just another low-income group to tax. He never held a real job and planned to be a politician his entire life. Currently, he is enjoying the BIGGEST taxpayer-funded pension in America.
In an hour-long press conference at Mar-A-Lago last August, President Donald J. Trump vowed to cancel income taxes on Social Security benefits. Of course, to do so, he needed a House & Senate controlled by Republicans. Virtually all elected Democrats at the national level are greedy, power-mad Socialists who dislike their fellow Americans and will vote against helping America’s senior & disabled citizens at a time when too many are eating out of food banks due to Bidenomics.
The One Big Beautiful Bill (OBBB) does not eliminate all taxes on Social Security benefits because the Senate parliamentarian would not allow it, but it does include tax breaks for seniors with modest incomes. The White House estimates the new deductions will provide some measure of financial relief to 33.9 million seniors, with an average increase in after-tax monthly income of $670 per person. This writer was unable to find information about tax breaks for beneficiaries under age 65 who are receiving Social Security disability benefits.
WHAT DID OBBB DO FOR SENIORS?
While budget reconciliation bills are not permitted to change Social Security, the OBBB does include deductions as follows:
- Single seniors (aged 65 and older) can deduct $6,000 from taxable income, and married seniors filing jointly can deduct $12,000 as a couple.
- The full $6,000 per-person deduction is available to single filers with income up to $75,000 and joint filers with income up to $150,000. Beyond those levels, deductions are phased out.
Here’s the bottom line: The Senate bill, which was signed by President Trump, would bring the total deductions available to seniors to $23,750 for single filers and $46,700 for married couples filing jointly. Those tax breaks are more expansive than the ones approved in the House bill earlier this year, which capped the new senior deduction at $4,000 per person. This is in addition to Trump’s 2017 (temporary) tax breaks which were made permanent via the OBBB. SEE LINK BELOW
The Social Security Administration says 90% of seniors on Social Security would pay no taxes on benefits under the One Big Beautiful Bill signed by President Trump on July 4th, an increase from 64% under current law.
BRIEF HISTORY OF SOCIAL SECURITY TAXATION
From inception in 1939 until tax year 1984, Social Security benefits were exempt from federal income taxes. In 1983 the Social Security “Trust Fund”* was facing a financial shortfall. Based on the recommendation of the 1983 Greenspan Commission, Congress enacted legislation to require Social Security beneficiaries with income above certain thresholds to pay taxes on their benefits. Senator Joe Biden, age 41, did not sponsor the bill as the above meme claims; but, he did vote “yes.”
As originally enacted, this policy required beneficiaries with total income above $25,000 (single) or $32,000 (couple) to include up to 50 percent of their Social Security benefits in their modified adjusted gross income.
The rationale for taxing half the benefits is that the Social Security payroll tax is split 50/50 between workers and their employers. The workers’ half is included in their taxable income, whereas the employers’ half is not. Because half the contributions are taxed and half are not. THAT rationale flew out the window ten years later as greedy DC parasites lusted for ever more power. These thresholds are not indexed to inflation, which means the amount of benefits subject to income tax continually increased over time.
DC SWAMP’S GREED KNOWS NO END
Congress enacted a new policy in 1993 to tax up to 85 percent of benefits for beneficiaries with total income above $34,000 (single) or $44,000 (couple). These thresholds were not indexed to inflation, and remain the same in 2025. In other words, under the massive inflation caused by the Biden/Harris Regime the protected income figures were not increased.
The choice of 85 percent was based on convoluted calculations that made sense only to greedy politicians and DC Swamp creatures. Senator Biden, age 51, voted “yes” to narrowly pass an “Omnibus Bill,” which included an increase in the level of taxable Social Security benefits from 50% to 85%. One thousand dollars in 1993 is equivalent in purchasing power to over $2,174.22 today, an increase of $1,174.22 over the last 32 years.
Greedy Democrats Want Biggest Tax Increase In History So Economy Will Tank
Trump 45’s Tax Cuts & Jobs Act of 2017 (TCJA) is designed to expire at the end of this year. If Trump’s One Big Beautiful Bill is not passed, in one form or another, Americans will experience the biggest tax increase in history. Moreover, if these huge tax cuts are not made permanent, the economy will tank, which is what Democrats want.
*There is no such thing as a Social Security “Trust Fund.” During the Vietnam War, President Lyndon B. Johnson, with the help of a Democrat House and Democrat Senate, closed the Social Security Trust Fund and stole all the money to fund his ego project: Johnson’s War which slaughtered 59,000+ Americans in a war the politicians refused to win. Since that time, all Social Security taxes have been deposited into the General Treasury where they are used for any number of Leftist causes which do not include paying Social Security benefits.
The author, Diane L. Gruber, is a First Amendment advocate who writes for Substack. She calls her Substack newsletter America First Re-Ignited.
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