The Social Security Administration (SSA), long regarded as a nonpartisan institution dedicated to serving the public, is facing sharp criticism after sending out a mass email this weekend lauding the passage of President Trump’s “One Big, Beautiful Bill.” The message, signed by SSA Commissioner Frank Bisignano, claimed the new law “eliminates federal income taxes on Social Security benefits for recipients” and hailed the legislation as “historic tax relief for seniors.”
According to the email, the bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits. It described the legislation as a “historic step forward for America’s seniors,” and asserted that the law “eliminates federal income taxes on Social Security benefits for most beneficiaries.” The message also touted an “enhanced deduction for taxpayers aged 65 and older,” suggesting retirees would keep more of what they earned.
Despite the celebratory tone of the SSA’s communication, the truth is more complicated—and far less sweeping than advertised.
- No Full Exemption: The bill does not eliminate federal income taxes on Social Security benefits. Instead, it introduces a temporary tax deduction, not a permanent exemption.
- Deduction Caps: The deduction is capped at $6,000 for individuals and $12,000 for married seniors.
- Income Phase-Out: These deductions begin to phase out at $75,000 for individuals and $150,000 for couples, meaning higher-income seniors receive little or no benefit.
- Temporary Relief: The provision is not permanent; it is set to expire after several years due to the budget reconciliation rules used to pass the legislation.
- Limited Reach: Not all seniors will benefit, especially those above the income thresholds or those who do not owe taxes on their Social Security benefits to begin with.
Observers note that this is the first time in the agency’s nearly 90-year history that it has issued such a politically charged statement. Critics argue that using the SSA to promote misleading claims about legislation marks a troubling shift from its traditional, nonpartisan role.