and it is a deduction to taxable income, not a tax credit. (not that you suggested differently, just to re-iterate the point.)
WaPo ( I know ...) has a good article about it. Summary - it is BAD policy. Not mentioned in the article, it is a potential political minefield for Democrats in future elections (assuming future elections happen).
https://www.washingtonpost.com/business/2025/07/02/senior-deduction-trump-social-security/
Emphasis added.
... the provision would not benefit tens of millions of low-income seniors, and it would hasten the date by which the Social Security trust fund runs out of money, according to nonpartisan estimates.
Under current law, most taxpayers claim the standard deduction of $15,000 (or $30,000 for couples) to reduce their tax liability, though the GOP tax bill would increase those amounts slightly. Additionally, seniors already qualify for an additional deduction of $2,000 (or $3,600 for couples).
The Senate bill would create a third category that gives seniors an additional $6,000 (or $12,000) off their taxable income, provided they are below a certain income threshold. Seniors earning more than $75,000 per year ($150,000 for couples) would start to see a smaller deduction, which gradually diminishes and then disappears for those earning more than $175,000 ($250,000 for couples).
...
... in 2022, the median income for seniors was roughly $30,000, according to federal data, which is similar to the existing standard deduction. That means roughly half of Americans aged 65 or older would not benefit from the new Trump provision ...
...
“This is going to be a meaningful tax cut that will help seniors in the upper-middle class,” said Marc Goldwein, senior vice president of the Committee for a Responsible Federal Budget, a nonpartisan organization. “While it may be pitched as going to low-income seniors, low-income seniors don’t pay taxes already.”
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