Much like the “no tax on tips” and “no tax on overtime,” what % of these beneficiaries will actually be able to benefit from this particular change, meaning: aren’t already covered by the standard deduction?
Also, aren’t the taxes on SSA income actually funneled back into the SS Trust Fund? Doesn’t reducing those receipts – to the extent this bill/law actually does that – simply accelerate the insolvency of the SS Trust Fund?
It looks like the Medicaid changes won’t take effect until 2027, after the midterm elections.
By increasing the debt over three trillion dollars, it will allow the Republican Party to once again claim they reduce the deficit while the Dems increase it.
I also ignore the obvious: many of these people who are being promised significant benefits but won’t realize them … are the same people who will be hardest hit by things like Trumpflation and cuts to Medicaid.
[Also ignoring the fiscal impact to the kids, grandkids, and great-grandkids of those who will be hardest hit. Also ignoring the impact of the ICE funding portions on the “your papers, please” crowd – a much larger crowd than many would have anticipated.]
Basically, everything about this bill is a textbook regressive tax, shoveling huge piles of money from the poorest Americans to the wealthiest Americans.
AIUI, the tax rate on SS benefits remains the same. Depending on the level of your other income, you can still be taxed on up to 85% of your SS income.
But the new deduction can be as much as $6,000.00 for filers age 65 or over. Of course, it’s not available to just anybody:
This new deduction would apply only to individual filers 65 and older with a modified adjusted gross income of up to $75,000, or married couples up to $150,000.
It would be available to seniors whether they take the standard deduction or itemize their returns.
And, naturally, the exemption is only for tax years 2025-2028. After which it disappears.
From Investopedia.
Thanks for that.
Also from that article:
I’ve seen ads on Facebook, directed at “Hoosiers” (that means people living in Indiana), talking about how the Bill will cost thousands of jobs, cause people to lose their healthcare, raise prices, stuff like that. I don’t know whether this is a state thing, or a national thing, but there are certainly people trying to publicize it.
I have my doubts about how effective it will be, though. Something else I saw on Facebook a couple days ago: a friend of mine who is a “proud Trump voter,” who also has a chronic illness. She posted about how her condition requires frequent blood tests, frequent doctor visits, and expensive medication, all of which has been paid for by Medicaid. She’s in her 30s, I would think, so she’s looking at this going on for a long time.
Now, faced with the prospect of losing that Medicaid coverage, does she regret her vote? Not in the least, because damn it, Trump is right, the government needs to cut all that waste and fraud! So she is not going to “whine” about the government not “taking care” of her anymore. She’s just going to have to tighten her belt and figure out to pay for her own healthcare.
I am not optimistic about her chances.
MAGA voters in convenient GIF format,
It’s brilliant political theater. Now they can run in 2028 on “keeping SS untaxed”. And then when they win again they can bundle in some more ICE expansions and social welfare cuts with the one popular part of the bill. And even campaign on “Democrats want to tax your Social Security” if they oppose keeping the rest of the OBBA.
On the larger political point, specifically about lying to pursue agendas, the top Facebook post I see about the OBBA is trying to attack the SSA email as being “lies”. But as far as I can tell everything in the email is true. This bill really does exempt a large percentage of filers from paying taxes on SS income.
I am particularly concerned about nursing home responsibility for Pennsylvanians.
Filial laws require the children of indigent parents to pay for nursing home and medical costs. Pennsylvania has the most aggressive filial laws in the country.
Pennsylvania still has filial laws on the books that can be enforced. I shudder to think how that could play out.
Channeling my inner Republican,
Those indigent nursing home moochers better start looking for jobs.
Essentially most of us who are not millionaires will have to spend down our money to be eligible for Medicaid to fund our long term nursing home stays. It will impact most Pennsylvanians.
With the cost of nursing care homes being so high it will be a few short months before I am considered indigent.
I discovered this particularly nasty law years ago when my father was ill. I was concerned it might get to that point but he died before anything transpired.
That’s the Republicans’ goal.
I don’t believe so.
I’d never heard of that. Shocks me. Surprised it would be enforceable.
Here is the AI Overview from a google search:
Pennsylvania has a filial responsibility law, which can make adult children financially liable for their indigent parents’ unpaid nursing home bills. This law, dating back to 1771, requires children to financially support parents who cannot afford their own care. While not frequently enforced, it has gained attention recently, particularly as Medicaid funding becomes more restrictive.
Actually, @DavidNRockies is correct. From the Investopedia article I linked above:
“The taxes paid on Social Security income are deposited into the Social Security and Medicare trust funds, not the federal general fund,” said Martha Shedden, president and co-founder of the National Association of Registered Social Security Analysts.
Hmm, it’s almost as if this was another way to fuck with SS and hasten it’s demise.
Our jurisdiction (BC, Canada) has a similar law. Different country, but both based on English common law.
Thank all for dispelling some small portion of my vast ignorance this day.
I wouldn’t have expected that in Canada!
Incidentally, we’re thinking of going to White Rock tomorrow.