Overview

• The House Republican budget includes a temporary $4,000 tax deduction for adults aged 65 and over, expiring in 2028.
• The deduction phases out for individuals earning over $75,000 and couples earning over $150,000, targeting middle-income seniors.
• This measure replaces President Trump’s initial proposal to eliminate Social Security benefit taxes, which was deemed too costly at an estimated $1.6–$1.8 trillion over a decade.
• The deduction, costing $71 billion over its duration, will be funded through general revenues rather than the Social Security trust fund.
• Experts note the deduction offers modest relief, saving a median-income retiree less than $500 annually, but avoids the significant revenue loss of full tax elimination.