SSA Criticized for Misleading Email on Social Security Taxes Amid New Tax Law

WASHINGTON — The Social Security Administration (SSA) has distributed a misleading email to beneficiaries, claiming that President Donald Trump’s new tax cuts and spending law eliminates taxes on Social Security benefits for most recipients.

The email stated, “The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation’s economy.” An identical note was posted on the SSA’s website.

These communications were issued before Trump signed his tax cuts and spending package into law during a July Fourth ceremony at the White House. The package extends the president’s expiring 2017 tax cuts and creates a temporary tax deduction for tips and overtime earnings. However, it does not eliminate federal taxes on Social Security benefits.

Budget reconciliation, the process used to pass the bill, does not permit changes to Social Security. The legislation does include a temporary tax deduction of up to $6,000 for seniors aged 65 and older, and $12,000 for married seniors.

Trump has repeatedly claimed that the legislation eliminates taxes on Social Security, despite this being inaccurate. Former SSA officials and congressional Democrats have criticized the email as highly political and misleading.

“This email went to every Social Security subscriber and every word of it is a lie. Social Security benefits are still taxed. This big, ugly bill doesn’t change that,” said New Jersey Rep. Frank Pallone.

Jeff Nesbit, a former top SSA official, called the email “unbelievable” and “unconscionable,” noting that the agency has never issued such a blatant political statement before.

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