In an emailed announcement praising the passage of the One Big Beautiful Bill Act, the Social Security Administration says the legislation will eliminate federal income tax on Social Security benefits, but the enhanced deduction actually reduces households’ taxes based on overall income. Speaking with The New York Times, Howard Gleckman, a senior fellow for the Urban-Brookings Tax Policy Center, said, “The [Social Security Administration] statement implies there is a direct tax cut on Social Security benefits, which there is not.”
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