Misleading Communication from SSA on Social Security Tax Relief
WASHINGTON — The Social Security Administration (SSA) has come under scrutiny after sending an email to beneficiaries that inaccurately claimed that President Donald Trump’s extensive tax and spending legislation would eliminate federal taxes on Social Security benefits for the majority of recipients.
The email stated, “The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing significant and immediate assistance to seniors who have dedicated their lives to contributing to our nation’s economy.” Several beneficiaries shared this message with NBC News.
According to the email, “The new law includes a provision that removes federal income taxes on Social Security benefits for most beneficiaries, offering relief to individuals and couples.”
An identical statement appeared on the SSA’s website on the same day multiple beneficiaries reported receiving the email, coinciding with Trump’s upcoming signing of his substantial tax and spending package, referred to by him as the “big, beautiful bill,” during a White House ceremony on Independence Day.
This domestic policy package, which Congress delivered for Trump’s approval on Thursday, aims to extend the expiring tax cuts initiated in 2017 and introduces a temporary tax deduction for earnings from tips and overtime.
However, it does not abolish federal taxes on Social Security. The budget reconciliation process utilized by Senate Republicans to advance the bill without a Democratic filibuster restricts any modifications to Social Security.
Nonetheless, the Trump administration’s proposal includes a temporary tax deduction that allows seniors aged 65 and older to deduct up to $6,000, and married seniors can deduct up to $12,000. The Council of Economic Advisers claimed last month that around 90% of seniors would not owe any federal taxes on their Social Security benefits due to this new deduction potentially alleviating their tax burden.
“Under the One Big Beautiful Bill, 51.4 million seniors — or 88% of those receiving Social Security benefits — will not face taxes on their Social Security,” the council indicated.
Trump, who promised during his 2024 campaign to eliminate taxes on Social Security, has been repeatedly asserting that the legislation accomplishes this goal. He reiterated this claim at a rally in Iowa on the previous Thursday and during the bill-signing event.
“Once this takes effect, our economy is going to skyrocket,” Trump remarked during the White House ceremony, adding, “and we’ve delivered no tax on tips, no tax on overtime, and no tax on Social Security for our great seniors.”
Requests for comments from both the White House and the SSA went unanswered. Frank Bisignano, the Commissioner of the SSA and a key political appointee, described the new tax measures in the email as a “historic advancement for America’s seniors.”
“For nearly 90 years, Social Security has served as a fundamental aspect of economic security for older Americans. By significantly lowering the tax burden on benefits, this legislation reinforces President Trump’s commitment to safeguard Social Security and ensures that seniors can enjoy the retirement they have rightfully earned,” Bisignano wrote.
Former SSA officials and congressional Democrats expressed their outrage over what they deemed a politically charged email disseminated by a federal agency.
“This email was sent to every Social Security participant, and every single word is false. Social Security benefits continue to be taxed. This substantial bill does not change that,” stated New Jersey Rep. Frank Pallone, ranking Democrat on the Energy and Commerce Committee, on X. “It is disconcerting to witness Trump exploiting a public institution to spread blatant misinformation.”
Jeff Nesbit, a former senior official at the SSA during the Biden era, criticized the political emails as highly irregular, labeling them “unbelievable” and “unconscionable.”
“I served as deputy commissioner of the Social Security Administration, appointed by President Biden. The agency has never released such an overtly political statement,” Nesbit, who has also worked in various capacities under different administrations, remarked on X. “The actions of Trump and his team at SSA are reprehensible.”
According to the SSA, over 70 million retirees, survivors, and individuals with disabilities currently rely on Social Security benefits.
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