President Donald Trump Broke His Vow Not to Tax Social Security Benefits -- and Retirees Are Being Given This Concession Instead

Sean Williams, The Motley Fool

Thu, Jun 19, 2025, 3:06 AM 8 min read

• Getting as much as possible out of Social Security isn't a luxury for most retirees -- it's a borderline necessity.

• Though President Trump's pledge to end the tax on Social Security benefits had overwhelming support from retirees, it would have been a fiscally irresponsible move.

• Trump's One, Big, Beautiful Bill offers a concession directed at low to mid earners aged 65 and up.

• The $23,760 Social Security bonus most retirees completely overlook ›

In May, the average monthly Social Security benefit for retired workers hit an important milestone by crossing above $2,000 for the first time in the program's history. Though this is a fairly modest monthly payout, Social Security income plays a foundational role for most retirees in helping make ends meet.

Based on an analysis from the Center on Budget and Policy Priorities, Social Security helped pull more than 22 million people above the federal poverty line in 2023, including roughly 16.3 million adults aged 65 and above. What's more, the poverty rate for retirees would soar to an estimated 37.3% if Social Security didn't exist, compared to the 10.1% poverty rate with Social Security income, as of 2023.

For many retirees, getting as much out of Social Security as possible isn't a luxury -- it's a borderline necessity to ensure a rock-solid financial foundation.

When Trump campaigned on the idea of eliminating the taxation of Social Security benefits, which would allow select recipients to hang onto more of the benefits they receive, his idea garnered overwhelming support from current retirees. But with Trump's One, Big, Beautiful Bill working its way through Congress, it's become clear that the president's vow to shelve the taxation of benefits has been broken and replaced by a concession instead.

On July 31, then-candidate Donald Trump posted on his social media platform Truth Social that "Seniors should not pay tax on Social Security." This message was followed up just months after his Jan. 20 inauguration with a speech during a town hall event that proclaimed:

In the coming weeks and months, we will pass the largest tax cuts in American history -- and that will include no tax on tips, no tax on Social Security, and no tax on overtime. It's called The One, Big Beautiful Bill.

Based on an informal poll from nonpartisan senior advocacy group The Senior Citizens League, well over 90% of retired survey-takers believe Social Security benefits shouldn't be subject to federal taxation.