Misleading Social Security Email Stirs Up Outrage
Category: Social Security
July 4, 2025 – In an unusually partisan email that appears to have been sent to all Social Security beneficiaries today, the Social Security Administration touted the “Big Beautiful Bill” just signed into law. The headline of the email was: “Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors”. The email has sparked outrage from former Social Security Administration officials and responsible media sources.
While every administration always tries to shine the brightest lights on its goings on, Social Security Commissioner Frank Bisignano hit a new sycophantic high in its misleading email: “This is a historic step forward for America’s seniors…. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”
If only that were true!
Misleading and not true
The New York Times, CBS, NBC, AARP, and many other groups were quick to criticize the email. One example, according to the NY Times: “The S.S.A. statement implies there is a direct tax cut on Social Security benefits,” said Howard Gleckman, a senior fellow at the Tax Policy Center, a nonpartisan think tank, “which there is not.”
No help for the bottom half
The bill does nothing to help the poorest Americans. Individuals earning less than $25,000 per year and $32,000 for couples do not owe any taxes. Recipients earning more than that paid taxes on up to 85% of their benefits, depending on their income. Prior to the new bill less than half of beneficiary families owed federal income tax on their benefits, according to the SSA.
One of the most misleading or untrue parts of the email concerned the claim that 90% of SS beneficiaries would not pay taxes on Social Security. The law does not actually eliminate federal income taxes on Social Security benefits. Instead, it gives a temporary tax deduction on all income (not just SS) of up to $6,000 for folks over 65, where it starts to phase out. According the AARP, “The full deduction is available to taxpayers age 65 and older with a modified gross adjusted income (MAGI) of up to $75,000 for an individual filer and $150,000 for a couple filing jointly.” The bonus starts to phase out for people with incomes over those levels.
Dessert First, Vegetables Later – Trust Funds Will Run Out of Money Sooner
What the SSA also failed to mention in its email is the harm that this pandering bill will do to the long term health of Social Security and Medicare. Since taxes paid on Social Security benefits go directly to the SS and Medicare trust funds, these new deductions hasten the date when those trust fund run out of money. For Social Security, the date when only about 77% of promised benefits can be paid now moves up to 2032 from 2033. For the Medicare trust fund the news is even worse; its exhaustion date jumps to 2030 from 2036, according to the CRFB.
Bottom line: The partisan and misleading email from the Social Security struck a new low for one of America’s most popular social programs. Readers of this Blog know that politician’s refusal to take positive steps to fix Social Security is our Great White Whale. While the new law will undoubtedly please taxpayers with higher incomes, it makes the impending crisis in Social Security worse by speeding up the date when its Trust Funds run out of money. A more responsible approach would have been to do something that would shore up the Trust Funds instead of depleting them. Our favorites would be to increase the percentage paid by employees and employers on their earnings. And, perhaps more effectively, taxing all earnings instead of capping them at certain levels. That way when 2032 comes (only 7 years away!) we all won’t have to settle on getting 77% of what we get now in benefits.
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Comments on "Misleading Social Security Email Stirs Up Outrage"
LS says:
I found the email from Social Security shockingly partisan rather than presenting factual information. The SS Administrator is just another brown nose trying to suck up to Trump.
Admin says:
National media and former Social Security Administration officials erupted in disgust over this Social Security email over the weekend, saying that it was full of lies and misleading statements. Existing law does not allow SS benefits to totally be exempt, The only true part of the email concerned the new "Senior Bonus". According to NBC News: "But it does not eliminate federal taxes on Social Security. Budget reconciliation, the arcane process Senate Republicans used to pass the bill while avoiding a Democratic filibuster, does not allow changes to be made to Social Security." https://www.nbcnews.com/politics/trump-administration/social-security-administration-sends-misleading-email-lauding-trumps-n-rcna216990
Mike says:
Admin, existing law does allow SS benefits to be totally exempt depending on income. The IRS calls it “combined income” which is half of SS payments plus adjusted gross income and non taxable interest reported on your tax return. As an individual if your combined income is $25,000 or less there is no tax on benefits and on a joint return the limit is $32,000.
The deceiving part of the email is it makes it sound like this is something new and all seniors will get the benefit. According to the White House 64% of seniors already pay no tax on benefits and the law only provides an average yearly $670 income increase to those who will be effected by the changes. The average cut to benefits arriving a year sooner due to the bill are expected to be $474 per month.
That is not protecting Social Security in my book.
Billy says:
That 6000 deduction probably won't effect most of these readers.