​No Social Security tax in 2025? Here’s exactly what the new bill proposes 

08/02/2025
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05:45
CSTPresident Donald Trump has been making a lot of executive orders which have concerned millions of Americans who are reliant on the state to help them get by, as well as other sectors of society. The latest institution to come under fire is Social Security, this time thanks to a new bill introduced by US Senators Roger Marshall and Marsha Blackburn.The aim is that millions of retirees will receive more financial help than they were before, but detractors say that it could strain the Social Security trust fund and add to the national deficit. It is in the Republican’s interest to financially help older people as they have a higher percentage of elderly voters in comparison to the Democrats.According to the Social Security Administration (SSA), the estimated average monthly Social Security retirement benefit for January 2025 is $1,976. For many retirees, these Social Security payments are a primary source of income.Millions of Americans see their benefits get taxed, which impacts financial security at what is a very precarious economic time for the USA.The bill aims to eliminate the double taxation of Social Security benefits, meaning millions of retirees could be exempted from federal taxes on their Social Security payments.”After four years of record-high inflation, the current tax on Social Security has been devastating to America’s retirees,” Marshall said. “By cutting taxes on Social Security, this bill will ensure America’s seniors can keep more of their hard-earned money and fix a fundamental flaw in our tax system.” Raising the provisional income threshold to $34,000 for single filers and $68,000 for married filers.Updating the thresholds annually to prevent bracket creep and protect retirees from inflation’s impact.Simplifying tax rules to maintain a single 85 percent inclusion rate for benefits exceeding the new thresholds, simplifying the filing process and reducing confusion for seniors.Redirecting funds from inefficient government spending in non-defense, non-veterans and non-homeland security discretionary appropriations accounts. This ensures the Social Security and Medicare trust funds are safeguarded while prioritizing retirees.