“the bill does not include a provision to eliminate federal income taxes on Social Security benefits.
“There is no provision in the budget bill that directly ‘eliminates’ or even reduces taxes on Social Security benefits,” Howard Gleckman, senior fellow at the nonpartisan Tax Policy Center, told the Washington Post.
Trump’s bill offers a tax deduction of $6,000 to seniors making up to $75,000 individually, or $150,000 on a joint return. The deduction is lowered for incomes above that level and axed for seniors with individual incomes of more than $175,000, or $250,000 jointly. However, the new deduction for seniors is set to expire within a couple of years. The median income for seniors in 2022 was about $30,000.”
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“Before the megabill’s passing, 64 percent of seniors receiving Social Security income paid no tax on their Social Security due to exemptions and deductions, according to an estimate by Trump’s Council of Economic Advisers. Under Trump’s megabill, 88 percent won’t be paying.”
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the rise is due to the bill’s increase in “the standard deduction for seniors, which, as a result, reduces the number of seniors who will pay taxes on their Social Security benefits.”
…the new legislation will provide limited benefits for lower-income seniors because they already pay less in taxes.”
“As Republicans began to consider their bill in January, Trump promised to “love and cherish” Medicaid. But he ultimately embraced the cuts as necessary to get the bill passed and lobbied reluctant GOP representatives and senators to go along.”
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“Other entitlements like Medicare and Social Security, which both serve elderly people, were deemed too politically risky to touch. Trump has been even more adamant about not reducing benefits in Medicare and Social Security, a cornerstone of his first campaign in 2016, than he was about Medicaid.”
“Corporations are betting they will benefit from the legislation making permanent the tax breaks in the 2017 Tax Cuts and Jobs Act.
The package would restore a tax break from the 2017 tax package that allowed businesses to fully write off the cost of equipment in the first year it was purchased. The incentive has been phasing out since 2023.
Also, the legislation would once again allow businesses to write off the cost of research and development in the year it was incurred. The TCJA required that companies deduct those expenses over five years, starting in 2022.”
“If the bill passes, businesses would be allowed to fully and immediately deduct the cost of building new manufacturing facilities. This temporary provision is retroactive to January 19, 2025 and continues for construction that begins before January 1, 2029.
And in a bid to incentivize more chipmaking in America, the legislation would enhance tax credits for semiconductor firms building manufacturing facilities in the United States.”
“The National Federation of Independent Business, the leading small business lobbying group, praised the legislation for making permanent a special deduction for the owners of certain pass-through entities who pay businesses taxes on their individual tax returns.
That deduction, which applies to small businesses and partnerships formed by lawyers, doctors and investors, would get increased in the House version of the bill from 20% to 23%. The Senate bill kept it at 20%.”
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“The net income for the top 20% of earners would increase by nearly $13,000 per year, after taxes and transfers, according to an analysis of a near-final version of the Senate bill by Penn Wharton Budget Model.
That amounts to a 3% average increase in income for those households.
For the top 0.1% of earners, the average annual income gain would amount to more than $290,000, according to Penn Wharton.”
“Employees who work in jobs that traditionally receive tips could deduct up to $25,000 in tip income from their federal income taxes, while workers who receive overtime could deduct up to $12,500 of that extra pay.
However, highly compensated individuals, who make more than $160,000 in 2025, would not qualify.”
“Many people at the lowest end of the income ladder would be worse off because the package would enact historic cuts to the nation’s safety net program, particularly Medicaid and food stamps.
Among the many changes to these programs would be the addition of federally mandated work requirements to Medicaid for the first time in its 60-year history and the expansion of the work mandate in the Supplemental Nutrition Assistance Program, or SNAP, the formal name for food stamps. Parents of children ages 14 and up are among those who would have to work, volunteer, take classes or participate in job training to keep their benefits.
Millions of low-income Americans are expected to lose their benefits because of the work requirements and the bill’s other measures affecting Medicaid and food stamps. Notably, few of those dropped from Medicaid coverage would have access to job-based health insurance, according to a Congressional Budget Office report about the House version of the package.
The health provisions won’t only hit low-income Americans. The Senate is also tightening verification requirements for the Affordable Care Act’s federal premium subsidies, which could also leave some middle-income Americans uninsured.”
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“Hospitals are not happy with the health care provisions of the bill, which would reduce the support they receive from states to care for Medicaid enrollees and leave them with more uncompensated care costs for treating uninsured patients.”
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“The Senate version of the package would increase the deficit by about $3.4 trillion over the next decade, according to CBO.”
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“The CBO expects US federal government interest costs to surpass $1 trillion per year.”
Trump’s big beautiful bill hits Medicaid hard, which provides health insurance for low-income people. The bill adds onerous paperwork requirements that many people will fail to complete. Republicans represent the cuts as getting able-bodied young men back to work, but for Medicaid to save money, it has to no longer pay medical bills, which do not primarily come from able-bodied young men.
“Murkowski..was able to extract key concessions for her state…She won victories on clean energy tax credits, delaying changes to food aid for her state and the promise of massive revenues from oil and gas drilling leases, among other priorities she can take back home.
In the end, she voted for a bill that makes up the core of her party’s domestic agenda.
“I held my head up and made sure that the people of Alaska are not forgotten in this, but I think that there is more that needs to be done, and I’m not done,” Murkowski told reporters immediately after the vote. “I am going to take a nap, though.”
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she ultimately voted for a bill she just minutes later decried as “rushed” and “imperfect.”
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What Murkowski was wrangling for was pretty basic: How to blunt the impact of the bill on her state.
“What I tried to do was to ensure that my colleagues understood what that means when you live in an area where there are no jobs, it is not a cash economy,” she told reporters. “And so I needed help, and I worked to get that every single day.”
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Bowhead whaling boat captains recognized by the Alaska Eskimo Whaling Commission will be able to deduct more for whale-hunting-related expenses, up to $50,000 from the current $10,000.”
Although both parties have been fiscally irresponsible, the Republicans have been more irresponsible, despite talking about it more. The Democrats tend to offset some of their spending with taxes. Republicans just take on debt to pay for wars and tax cuts that mostly benefit the wealthy.
““No senator wants to be the reason their local hospital shutters its doors, and now is their opportunity to stop that from happening,” said a source familiar with hospital industry thinking, granted anonymity to speak freely on strategy.
More than 250 hospital leaders flew into Washington on Tuesday to urge senators to preserve Medicaid as part of an American Hospital Association lobbying campaign. The association spent almost $8.5 million on lobbying in the first quarter of the year, a high water mark dating back almost two decades.
“There are aggressive conversations ongoing … to make sure that all senators recognize the vulnerability that it is going to potentially put all of our hospitals in,” said one stakeholder granted anonymity to speak on strategy”
The Republican claim that their bill’s Medicaid cuts won’t take away people’s health insurance because people will get employer health insurance is either spoken out of dishonesty or ignorance. Many people on Medicaid will not be able to get a full time job that supplies benefits like health insurance. They will be paid little and not receive health insurance. Medicaid expansion has not shown to increase unemployment.