Social Security Recipients Set for $4,000 Payment Hike: Check Your Eligibility
House Republicans have unveiled a draft of their tax proposals, which includes a potential deduction for Social Security recipients.
On Monday, the House Ways and Means Committee unveiled the "one, big beautiful bill." This proposed law, serving as the cornerstone of the President’s agenda, was made public through the release of the preliminary legislative document. Donald Trump His plan for the country’s economy includes increasing the national debt limit by $4 trillion, prolonging specific tax reductions from his initial term, and introducing new incentives related to tips, overtime wages, and automobile financing.
Why It Matters
While the proposed removal of taxes on Social Security benefits —one of Trump's campaign pledges—was absent from the draft resolution; however, Republicans included a tax break that might advantage the tens of millions of taxpayers. older Americans who rely on the insurance program.
What To Know
The approximately 400-page resolution encompassed numerous tax-focused suggestions, among which was the prolongation of various aspects from the Tax Cuts and Jobs Act of 2017 under the previous administration, originally scheduled to terminate by the end of this year.
A segment titled "increased deductions for older adults" explains the Social Security entitlements available to individuals aged 65 and above. According to the legislation, from tax year 2025 to 2028, elderly taxpayers can claim an extra $4,000 as a deduction on their Social Security income.
Nevertheless, the legislation continues by stating that this deduction will have income-related limitations, with the deduction amount decreasing by 4% for every dollar over $75,000 of adjusted income, or over $150,000 in cases involving joint tax filings.
What People Are Saying
House Speaker Mike Johnson , through X: "Our ' One, Big, Beautiful Bill ' will deliver the America First Agenda. This has been a year in the making, and we will not rest until we get it done for the American people."
Kevin Hassett, who leads the National Economic Council , said Trump was "very, very pleased" with the bill.
"The bottom line is that the president's top priorities are to take the previous tax cuts and extend them and make them permanent, but then to go after the things that are going to help middle-class folks ," Hassett told CNBC. "Let's have no tax on tips, no tax on Social Security, no tax on overtime. Those are the top priorities for the president right now."
President Donald Trump On Monday evening, they posted on Truth Social encouraging Republicans to “come together” behind House Ways and Means Committee Chairman Jason Smith.
What Happens Next
House Republican leadership has expressed hopes that the bill can pass in the House and move forward to the Senate by Memorial Day. Smith recently told Fox News he hopes for Trump to sign the bill by Independence Day.
However, there still exists some GOP opposition in the House, where the party holds a slim majority. Texas Representative Chip Roy told reporters last week that there "20 plus issues" with the resolution in its current form.
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