The “One Big, Beautiful Bill Act,” passed by the House on May 22, 2025, includes a $4,000 tax deduction for seniors earning under $75,000 ($150,000 for joint filers), phasing out for higher incomes. This temporary measure, expiring in 2028, partially fulfills Trump’s promise to eliminate taxes on Social Security, supported by AARP. The bill, now in Senate debate, extends the 2017 Tax Cuts and Jobs Act and adds $3.8 trillion to the deficit, per the CBO.
The seniors deduction complements other provisions, like no taxes on tips, no taxes on overtime pay, and a tax deduction for American-made cars. The small business deduction rises to 23%, boosting entrepreneurs. However, the remittance tax on non-citizens, including Non-Resident Indians, and the phase-out of electric vehicle tax credits have drawn criticism. The IRS, with staff reductions of 11%, faces challenges implementing these changes.
Senate debate will focus on fiscal concerns, with Republicans seeking to balance tax cuts with spending reductions. The foreign earnings tax, upheld by the Supreme Court, adds complexity for international taxpayers. The seniors deduction offers relief but may be overshadowed by the bill’s broader fiscal impact.
