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Trump’s tax bill increases Social Security costs by $169B
According to the Social Security Office of the Actuary, the OASI trust fund reserve depletion date shifts from Q1 2033 to Q4 2032.
President Donald Trump’s “Big Beautiful Bill” is set to create a $169 billion shock for future Social Security benefits, despite campaign promises that it would not jeopardize Social Security or Medicare, according to analysis published by Yahoo Finance.
The article says the bill includes temporary tax credits and deductions that are set to expire after 2028, including the elimination of taxes on overtime and tips and a $6,000 deduction for seniors age 65 and older. It argues that while such tax breaks may be popular for eligible groups, they reduce government revenue and therefore complicate funding social programs.
Citing a letter from the Social Security Administration’s Office of the Actuary to Senator Ron Wyden, the article says the reduction in revenue increases the net cost of the OASDI program by $168.6 billion over calendar years 2025 through 2034. It also says the reserve depletion date for the OASI Trust Fund is accelerated from the first quarter of 2033 to the fourth quarter of 2032.
The piece further notes that the impact differs from the temporary, targeted tax reductions because it affects the broader system that workers rely on to receive benefits later.