Many of you might have seen the One Big Beautiful Act in the headlines for two to three months now, and might have been wondering what the bill will consist of. So, before going forward with the new bill, one should know that the impact of the bill will go into effect from July 2025. The new bill proposed by Donald Trump and passed by Congress consists of a major tax reform that is aimed at giving financial relief to the senior citizens of the country.
Government Confirms More Social Security Benefits Under New Law
As of now, there are millions of seniors who will be impacted by the new law proposed and passed by the federal government. According to the administrators in the Senate, the new bill will be helpful for middle-class Americans and also provide them with reductions in federal taxes. Many believe that the federal taxes will be completely waived off, but that is not at all true. The new law will only enable some tax relief to the eligible candidates residing in the country.
The new law states that an individual’s income, if it is below $34000 (if single) and $44000 (if married), will be eligible to benefit from the tax reduction. And those individuals who are earning more than the stated amount 85% of their Social Security benefits will be taxable.
Under the new law, individuals who are above the age of 65 will see a tax deduction up to $6000 between the years 2025 and 2028. So the new tax can be considered more beneficial for those individuals who are in their 60s and retired and earn a decent income.
Apart from that, the new bill can negatively impact a whole lot of beneficiaries, despite the government’s official claim to be a “beautiful bill”. If you are falling into either of the categories, make sure to retrieve all the information and stay updated on the matter.
One Big Beautiful Bill’s Impact on Social Security Benefits: Overview
| Article on | One Big Beautiful Bill’s Impact on Social Security Benefits |
| Country | United States Of America |
| Department | Social Security Administration (SSA) |
| Category | Government Aid |
| Official website | ssa.gov |
Who will benefit from the new bill by the Congress?
As seen in the history of capitalism, all the big business groups and the big agencies have backed up the new proposal passed by the Senate, and few even applauded it. Why won’t they? For years, the capitalists have only made provisions in favour of the upper middle and the elite class, and this bill will do exactly the same. Let’s discuss in detail how it will benefit them.
- Big Corporations – the corporations established in the country are estimated to be the most benefited sector from the new bill. They are betting that they will get permanent tax breaks in the act of 2017 Tax Cuts and Jobs Act. The act will help gain the tax break mentioned in the 2017 package that stated businesses can fully write off the equipment cost in the initial 1st year of the purchase. This benefit and incentive have been rolling out since 2023, and now it is believed that it will be more effective. Now the legislation will again allow some businesses to write off the research cost and development cost in the year it was done.
- Manufacturers – many manufacturers are thrilled with the new law as it would bring some important changes in the working of the US tax codes and how it treats the new construction of manufacturing facilities. A temporary provision has been placed that has the timeline of 19th January 2025 to 1st January 2029, stating that the new construction should be between the given timeline.
- Partnership and Small Business – Small businesses formed through partnerships will also benefit from the bill. This applies to the partnerships that are formed by doctors, lawyers, and investors. They would receive a deduction on the business taxes on their personal tax returns. They will receive around 20% deductions.
- Americans with High income – it is estimated that Americans with high income (top 20% earners) will see an increase of $13000 every year after all the taxes and transfers.
Impact on seniors and retirees
When it comes tos eniors and retirees, Social Security will always come in between. Yes, it can be said that some of the beneficiaries will see tax deductions whose income can be counted in the strata of the upper-middle to middle class section of society. And according to a post on X, 88% of the retired beneficiaries will see a reduction in the federal taxes, meaning most of the amount of the social security benefit will be with the seniors only. But this will be only applicable to the ones who are paying the federal taxes properly and on time each year. The ones who do not have the need to file taxes will see no benefit from the new law.
The most important thing people are missing is that although there are visible tax deductions with Medicare and Medicaid, the programs are going to face huge cuts in the programs. And as a person ages, their health deteriorates, making seniors enroll in these federal programs.
The government is simply trying to show one benefit increase by making deductions in other programs. This deduction in the healthcare sector will heavily impact elderly people, as most of them are dependent on Medicare and Medicaid for all their health expenses. Cuts in these will mean a financial burden on the recipient and the programs, too.
Elimination of the Social Security Taxes
Although the president has blabbered in his 2024 campaign that he is promising to eliminate the taxes on the social security income but as usual it was an impulsive decision. There are some reductions, but there can’t be a complete waiver in the social security taxes because of certain legal limits.
If we go through the article and the estimates, most of the benefits are in favour of the elite and upper-middle section of society, with some benefits going to the beneficiaries of social security. People receiving the amount should not just be totally dependent on these because one of these rules may be changed if not in a year, but eventually, and again, one should never overlook the deductions in the federal health insurance.
| Official Website | Click Here |
| Homepage | BlackSea-Commission.org |
