Core Points - The White House claims that 88% of seniors receiving Social Security will pay no taxes on their benefits due to the new One Big Beautiful Bill Act, but this assertion is contested by experts [5][6][10] - The new law allows seniors aged 65 and above to claim a deduction of up to $6,000 per person, potentially $12,000 for couples filing jointly, but the benefits are limited to those with lower incomes [3][12] - The Center for Budget and Policy Priorities (CBPP) indicates that only 24% of current Social Security recipients will see a reduction in taxable income due to the new law, which falls short of the promises made during the campaign [6][10] Tax Deductions and Income Limits - Individuals earning $75,000 or less can claim the full deduction, which phases out completely at $175,000; for joint filers, the phase-out starts at $150,000 and disappears at $250,000 [2][3] - Approximately 64% of Social Security recipients already paid no federal tax on their benefits before the new law, limiting the impact of the new deductions [2][6] Long-term Implications - The new deduction is temporary and only applicable through 2028, raising concerns about the long-term stability of Social Security and Medicare trust funds [9][12] - The CBPP estimates that the cost of tax deductions could reduce federal tax revenue from Social Security benefits by $30 billion annually, potentially accelerating the insolvency of the Social Security retirement fund to 2032 [10][11] Health Insurance and Medicaid Cuts - The One Big Beautiful Bill Act also includes a significant cut to Medicaid spending, estimated at around $1 trillion over the next decade, which could lead to nearly 11.8 million Americans losing their health insurance by 2034 [12] - The combination of reduced Social Security benefits and potential loss of health insurance could severely impact older Americans in the early 2030s [13]