Social Security: Claiming '88% of Seniors Will No Longer Pay Federal Tax' on Benefits

Social Security / Tax Policy Source: Press Release, Senior Center Visit MISLEADING

Why This Matters for NY-23

Many NY-23 seniors live on fixed incomes and depend on every dollar. When Langworthy tells them “88% of seniors will no longer pay federal tax on Social Security,” he’s overstating what a $6,000 temporary deduction actually does — especially since 64% of seniors already paid no tax on benefits before this law. Meanwhile, the same bill cuts $911 billion from Medicaid that many low-income seniors depend on.

Statement

Source: Press Release, Senior Center Visit Reported by: Langworthy.house.gov

July 11, 2025: During a visit to Springville-Concord Senior Center, Langworthy stated:

“With recent legislative changes ensuring that 88% of seniors will no longer pay federal tax on their Social Security benefits, the Congressman emphasized that local retirees will see more breathing room in their budget for groceries, prescriptions, and other everyday essentials.”

What the Law Actually Does

The One Big Beautiful Bill Act (H.R. 1) provides:

A $6,000 deduction (not elimination) for seniors age 65+ on their Social Security benefits.

Eligibility limits:

  • Single filers: Income under $75,000
  • Married filing jointly: Income under $150,000

Critical detail: The provision expires December 31, 2028 unless Congress extends it.

The Reality Check

Claim: “88% of seniors will no longer pay federal tax on their Social Security benefits”

Problem 1: Most seniors already don’t pay federal tax on Social Security

According to Social Security Administration data and tax policy analysis:

  • Approximately 64% of Social Security beneficiaries already paid no federal income tax on their benefits before this law
  • Only about 36% of beneficiaries paid any federal tax on Social Security

Problem 2: This is a $6,000 deduction, not full elimination

Per Towerpoint Wealth analysis cited by Newsweek: “This leaves out the reality that a significant portion of retirees will still face a taxable amount.”

How it works:

  • Currently, up to 85% of Social Security benefits can be taxable for higher earners
  • The $6,000 deduction reduces taxable amount
  • Does NOT eliminate taxation for all seniors
  • Higher-income seniors will still pay some tax on benefits

Problem 3: It expires in 2028

The provision sunsets after 2028. Calling it a permanent change is misleading when it has a 3-year lifespan (starting 2026).

Breaking Down the “88%” Claim

Where does 88% come from?

The Tax Foundation and other groups estimated approximately 88% of Social Security recipients would see some benefit from the deduction.

“Some benefit” ≠ “will no longer pay federal tax”

The 88% includes:

  • Seniors who already paid no tax (64%) → no change
  • Seniors who will now pay no tax due to $6,000 deduction → actual benefit
  • Seniors who will pay less tax but still pay some → partial benefit

Langworthy’s statement conflates “receiving some benefit” with “no longer paying federal tax.”

Income Limits Create Coverage Gaps

Single seniors with income over $75,000:

  • No benefit from this provision
  • Still pay federal tax on up to 85% of Social Security benefits

Married couples with income over $150,000:

  • No benefit from this provision
  • Still pay federal tax on up to 85% of Social Security benefits

In NY-23: Many rural seniors have modest incomes and already paid no tax on benefits. The claim of “breathing room in their budget” overstates the actual impact for the district’s seniors.

What the Same Bill Also Does to Seniors

The One Big Beautiful Bill Act (H.R. 1) simultaneously:

Cuts Medicaid by $911 billion over 10 years:

  • 1.3+ million dually eligible seniors projected to lose Medicaid coverage (CBO)
  • “Dually eligible” = seniors on both Medicare and Medicaid (low-income)
  • Medicaid covers Medicare premiums, co-pays, and long-term care for these seniors

Impact on rural NY-23 seniors:

  • Many seniors are dually eligible (Medicare + Medicaid)
  • Long-term care facilities depend on Medicaid reimbursement
  • Rural areas have limited alternatives to Medicaid-supported care

The Trade-Off

What Langworthy emphasizes:

  • $6,000 temporary deduction for some seniors
  • “Breathing room” for groceries and prescriptions

What Langworthy doesn’t mention:

  • Most NY-23 seniors already paid no federal tax on Social Security
  • Provision expires in 2028
  • Same bill cuts $911B from Medicaid that supports low-income seniors
  • Cuts threaten nursing homes and home care services

In Plain Language

Here’s what the law actually does:

  • Provides a $6,000 deduction on Social Security benefits for seniors earning under $75K (single) or $150K (married)
  • This reduces taxable income — it doesn’t eliminate Social Security taxes entirely
  • The provision expires in 2028
  • Higher-income seniors still pay taxes on benefits

Here’s what was already true:

  • 64% of seniors already paid no federal tax on Social Security before this law
  • Only about 36% of beneficiaries paid any tax on benefits

So when Langworthy says “88% will no longer pay federal tax,” he’s conflating “some benefit from the deduction” with “complete tax elimination.” A senior who already paid no tax sees no change. A senior who paid $500 might save some of that. But the claim implies universal tax elimination that the law doesn’t provide.

And the same bill cuts $911 billion from Medicaid — which many low-income seniors depend on for nursing home care and prescription coverage.

Questions This Raises

  1. If 64% of seniors already paid no federal tax on Social Security before this law, how can 88% “no longer” pay tax?

  2. Why characterize a $6,000 deduction as elimination of taxation when higher earners still pay tax on benefits?

  3. Why not mention the provision expires in 2028 when telling seniors they’ll have “breathing room in their budget”?

  4. For dually eligible seniors in NY-23, does the temporary tax deduction offset losing Medicaid coverage that pays for prescriptions and care?

  5. How many rural NY-23 seniors will see more benefit from a $6,000 deduction than harm from Medicaid cuts and rural healthcare reductions?

Sources

Tax Law Analysis:

  • Towerpoint Wealth: “Is Social Security Tax-Free Under the New Big Beautiful Bill?” (2025)
  • Newsweek: Analysis of Social Security tax provisions (2025)
  • Tax Foundation: OBBBA tax provision analysis

Social Security Administration:

  • SSA: Benefit taxation statistics
  • SSA: Income thresholds for benefit taxation

Congressional Budget Office:

  • CBO: “Budgetary Effects of H.R. 1, One Big Beautiful Bill Act” (May 2025)
  • Medicaid impact on dually eligible seniors

Langworthy Statements:

  • Langworthy.house.gov: “Congressman Nick Langworthy Visits Springville to Spotlight Local Seniors, Small Businesses” (July 11, 2025)
  • Similar statements at other senior center visits (2025)

Independent Analysis:

  • Center on Budget and Policy Priorities: Social Security taxation analysis
  • AARP: Impact of Social Security provisions on seniors

Public Law:

  • Public Law 119-21: One Big Beautiful Bill Act

Note: This entry documents publicly available information from congressional records, tax policy analysis, and official statements. Readers may draw their own conclusions.

Last updated: December 30, 2025