Trump's 'one big bill' provides some tax relief for older middle-class taxpayers

• Lots of changes in store for Social Security recipients as more people rely on a system that's operating above capacity.
• Full retirement age (FRA) will increase to 66 years and 10 months next year for Americans born in 1959.
• The FRA reaches 67 in 2026 for those born in 1960 or later, capping decades of gradual changes.

This is shaping up as a year for older taxpayers to remember. Besides the changes mandated by President Trump's "big beautiful bill," many Americans are facing achangein Social Security's full retirement age (FRA) that will have a big impact on their retirement planning.

Any change to Social Security creates anxiety as the program has come to be a primary source of retirement income for as many as 40% of retired Americans. This is largelydue to the disappearance of pensions from the corporate workplace and to the low savings rate by U.S. consumers and is putting a massive strain on Social Security, which was originally designed to replace about 40% of a workers pre-retirement income.

For generations, Congress has passed the buck on finding new sources of revenue for the program, leaving the Social Security Administration to stretch its resources by upping the age at which it pays full benefits.

The latest increase will come in November 2025, when the FRA the age at which individuals are eligible to receive 100% of their Social Security benefits will increase to 66 years and 10 months for those born in 1959.

This is the latest step in a gradual schedule set in motion by the 1983 amendments to the Social Security Act, aimed at reflecting longer life expectancies and reducing the financial strain on the program.

By 2026, the FRA will reach 67 for Americans born in 1960 or later a threshold that will mark the culmination of the decades-long shift. The retirement age was fixed at 65 for decades prior to these reforms.

What's a tax break and what isn't?

You may not like the FRA change but it's at least easy to understand. That's not the case, however, with taxation provisions in Trump's bill. You may recall that Trumphad promised to eliminate federal taxes on Social Security benefits. That didn't happen, although his bill does include a temporary increase to the standard deduction for older people, which might lower the taxable income for some recipients.

Here's a summary of the changes. Read carefully, it's complicated.

• Enhanced Tax Deduction:The bill includes a provision to temporarily raise the standard tax deduction for individuals aged 65 and older. The Senate version would increase the standard deduction byup to $6,000 for tax years 2025 through 2028.
• Income Limits for the Deduction:The full $6,000 deduction is available to individuals with up to$75,000 in modified adjusted gross incomeand married couples filing jointly withup to $150,000. The deduction phases out for those above these thresholds and will not benefit the wealthiest seniors.
• Impact on Taxable Social Security:This enhanced deduction can indirectly help lower or middle-income retirees by potentially shielding more of their Social Security benefits from federal taxes. Some sources state that the majority of older adults receiving Social Security will pay no federal income tax on their benefits due to this change.
• Does NOT Eliminate Social Security Taxes:Despite campaign promises and claims from the Trump administration and SSA, the billdoes not fully eliminate taxes on Social Security benefits. Policy experts have clarified that the bill provides tax relief through a deduction, not a repeal of the tax.
• Limited Scope and Exclusions:The enhanced deduction istemporary, lasting through 2028. Additionally, not all Social Security beneficiaries will benefit, including those under 65, and those with higher incomes exceeding the phase-out limits.

Early retirement getsexpensive

Returning to the FRA, although Americans can still claim benefits as early as age 62, doing so comes with significant consequences: monthly payments can be reduced by as much as 30% for those who claim early. On the other hand, delaying benefits past ones FRA can result in a higher payout, increasing by up to 8% per year until benefits max out at age 70.

The changes come as Social Security faces growing financial pressures. Recent projections indicate the programs trust funds could be depleted by 2034, potentially forcing benefit cuts unless Congress takes action. Without reforms, beneficiaries might receive only 81% of promised benefits after that date, according to estimates.

Lawmakers are debating potential solutions, ranging from raising payroll taxes to further increasing the retirement age. Some proposals under consideration could push the FRA as high as 69 between 2026 and 2033 a move that would impact millions of workers currently aged between 30 and 55.

Proponents argue such changes are necessary to keep the system solvent without directly cutting benefits, while critics warn that delaying retirement disproportionately affects those in physically demanding jobs or with lower life expectancy.

For individuals hoping to plan ahead, the Social Security Administration offers a retirement age calculator and personalized benefit estimates through its My Social Security accounts, allowing Americans to model how these changes could impact their financial futures.

While the FRA increase in 2025 is certain, the debate over further hikes is likely to remain front and center in Washington as lawmakers grapple with how to protect one of the nations most vital social safety nets for decades to come.

Trump's 'one big bill' provides some tax relief for older middle-class taxpayers

• Lots of changes in store for Social Security recipients as more people rely on a system that's operating above capacity.
• Full retirement age (FRA) will increase to 66 years and 10 months next year for Americans born in 1959.

• The FRA reaches 67 in 2026 for those born in 1960 or later, capping decades of gradual changes.
  

This is shaping up as a year for older taxpayers to remember. Besides the changes mandated by President Trump's "big beautiful bill," many Americans are facing achangein Social Security's full retirement age (FRA) that will have a big impact on their retirement planning.

Any change to Social Security creates anxiety as the program has come to be a primary source of retirement income for as many as 40% of retired Americans. This is largelydue to the disappearance of pensions from the corporate workplace and to the low savings rate by U.S. consumers and is putting a massive strain on Social Security, which was originally designed to replace about 40% of a workers pre-retirement income.

For generations, Congress has passed the buck on finding new sources of revenue for the program, leaving the Social Security Administration to stretch its resources by upping the age at which it pays full benefits.

The latest increase will come in November 2025, when the FRA the age at which individuals are eligible to receive 100% of their Social Security benefits will increase to 66 years and 10 months for those born in 1959.

This is the latest step in a gradual schedule set in motion by the 1983 amendments to the Social Security Act, aimed at reflecting longer life expectancies and reducing the financial strain on the program.

By 2026, the FRA will reach 67 for Americans born in 1960 or later a threshold that will mark the culmination of the decades-long shift. The retirement age was fixed at 65 for decades prior to these reforms.

What's a tax break and what isn't?

You may not like the FRA change but it's at least easy to understand. That's not the case, however, with taxation provisions in Trump's bill. You may recall that Trumphad promised to eliminate federal taxes on Social Security benefits. That didn't happen, although his bill does include a temporary increase to the standard deduction for older people, which might lower the taxable income for some recipients.

Here's a summary of the changes. Read carefully, it's complicated.

• Enhanced Tax Deduction:The bill includes a provision to temporarily raise the standard tax deduction for individuals aged 65 and older. The Senate version would increase the standard deduction byup to $6,000 for tax years 2025 through 2028.
• Income Limits for the Deduction:The full $6,000 deduction is available to individuals with up to$75,000 in modified adjusted gross incomeand married couples filing jointly withup to $150,000. The deduction phases out for those above these thresholds and will not benefit the wealthiest seniors.
• Impact on Taxable Social Security:This enhanced deduction can indirectly help lower or middle-income retirees by potentially shielding more of their Social Security benefits from federal taxes. Some sources state that the majority of older adults receiving Social Security will pay no federal income tax on their benefits due to this change.
• Does NOT Eliminate Social Security Taxes:Despite campaign promises and claims from the Trump administration and SSA, the billdoes not fully eliminate taxes on Social Security benefits. Policy experts have clarified that the bill provides tax relief through a deduction, not a repeal of the tax.
• Limited Scope and Exclusions:The enhanced deduction istemporary, lasting through 2028. Additionally, not all Social Security beneficiaries will benefit, including those under 65, and those with higher incomes exceeding the phase-out limits.

Early retirement getsexpensive

Returning to the FRA, although Americans can still claim benefits as early as age 62, doing so comes with significant consequences: monthly payments can be reduced by as much as 30% for those who claim early. On the other hand, delaying benefits past ones FRA can result in a higher payout, increasing by up to 8% per year until benefits max out at age 70.

The changes come as Social Security faces growing financial pressures. Recent projections indicate the programs trust funds could be depleted by 2034, potentially forcing benefit cuts unless Congress takes action. Without reforms, beneficiaries might receive only 81% of promised benefits after that date, according to estimates.

Lawmakers are debating potential solutions, ranging from raising payroll taxes to further increasing the retirement age. Some proposals under consideration could push the FRA as high as 69 between 2026 and 2033 a move that would impact millions of workers currently aged between 30 and 55.

Proponents argue such changes are necessary to keep the system solvent without directly cutting benefits, while critics warn that delaying retirement disproportionately affects those in physically demanding jobs or with lower life expectancy.

For individuals hoping to plan ahead, the Social Security Administration offers a retirement age calculator and personalized benefit estimates through its My Social Security accounts, allowing Americans to model how these changes could impact their financial futures.

While the FRA increase in 2025 is certain, the debate over further hikes is likely to remain front and center in Washington as lawmakers grapple with how to protect one of the nations most vital social safety nets for decades to come.

Should a democratic government be for sale to the best fund-raiser?

• Watergate Fallout: Scandal in the 1970s ignited demands to ban private donations and protect democracy from secret money and corruption.

• Bold Proposals Stall: Reformers in Congress pushed to replace private cash with public fundsbut legal hurdles and partisan divides blocked sweeping change.

• Legacy Endures: Though efforts failed, the fight shaped debates still raging today over big moneys grip on U.S. elections.

Money pours into political campaigns today millions of dollars from individual supporters, giant corporations and anonymous donors who back PACs and other private funding efforts.

The Trump campaign raised at least $1.45 billion while the Biden campaign raised about $997 million. After Biden dropped out, the Kamala Harris campaign raised more than $1 billion in just three months.

The net effect is that the American government appears to be and in many ways isfor sale. While money alone can't guarantee campaign wins, a large campaign fund can outweighjust about everything but incumbency in shaping the outcome of an election and, therefore, public policies.

Those who weren't around to see it may not realize that nearly half a century ago, lawmakers and activists fought fiercely to eliminate private financing of elections altogether. During the 1970s and 1980s, a significant wave of reformers believed that only a fully public system could protect democracy from the corrosive influence of big donors and special interests.

John W. Gardner, a Republican who served in Democrat Lyndon Johnson's administration, was the founder in 1970 of Common Cause, a "people's lobby" that pushed strongly for public funding. It still exists but has shifted its priorities other issues.

Gardner and other public funding advocates failed buttheir proposals laid the groundwork for debates that still rage today.

Watergate sparks a reform movement

The modern push to end private funding of campaigns gained momentum after the Watergate scandal, which exposed how President Richard Nixons reelection committee had secretly raised millions from corporate executives, lobbyists, and wealthy individuals. Revelations about secret slush funds and illegal contributions shocked the public and drove Congress to enact the landmark Federal Election Campaign Act (FECA) amendments of 1974.

The FECA reforms imposed new limits on contributions and spending and created the system of public financing for presidential campaigns. But many reformers saw those measures as only partial fixes. They argued that as long as private money remained in the system, politicians would still be beholden to deep-pocketed interests.

Proposals for full public funding

In the years following Watergate, several bills were introduced in Congress aiming to replace private contributions entirely with public funds. One of the most prominent was sponsored by Sen. William Proxmire (D-WI) and Rep. John B. Anderson (R-IL) in the late 1970s. Their legislation would have banned all private donations for federal campaigns and instead allocated taxpayer money to candidates who met qualifying thresholds.

Supporters claimed the system would level the playing field and reduce the appearance or reality of corruption. The only way to restore public confidence in government is to sever the link between money and political favors, Proxmire said on the Senate floor in 1977.

But critics argued that forcing taxpayers to fund politicians they might oppose infringed on individual rights. Some worried that a public funding system could favor incumbents or create cumbersome government oversight over political speech.

Court decisions,political roadblocks

Adding to the challenges, the Supreme Courts 1976 decision in Buckley v. Valeo complicated reformers plans. The Court upheld contribution limits but ruled that spending money to influence elections is a form of protected free speech. This legal precedent made it harder for Congress to impose strict bans on political spending or to mandate an exclusive system of public funding.

In the 1980s, attempts to revive comprehensive public financing proposals repeatedly stalled. President Ronald Reagan and many congressional Republicans opposed new federal spending on campaigns and saw public funding as an unnecessary expansion of government. Even some Democrats were reluctant to abandon private donations, particularly as television advertising costs soared.

The powerful broadcasting lobby fiercely resisted public funding and also opposed widening restrictions on television advertising, a major source of funding for local broadcasters during election years.

Lingering influence

Despite repeated defeats, the efforts of the 1970s and 1980s helped shape public awareness about the influence of money in politics. Many proposals from that era such as matching funds, spending caps, and transparency requirements remain features of todays debates over campaign finance reform.

Recent Supreme Court rulings like Citizens United v. FEC (2010) and the rise of super PACs have only reignited concerns that private money dominates American elections. Reform advocates frequently cite the earlier push for a fully publicly funded system as an example of what might have beenand perhaps still could be.

History shows weve been grappling with this problem for decades, said Meredith McGehee, a longtime campaign finance reform advocate. The question remains: can we ever fully remove the influence of big money from our democracy?

While the dream of eliminating private funding entirely remains unrealized, the fervor of the 1970s and 1980s efforts endures as a reminder that the battle over money and politics is far from newand far from over.

It imposes sharfp cuts to healcare and social welfare programs while extending tax cuts

• Extends Trump-era tax cuts permanently while imposing cuts to healthcare and aid programs.

• Delivers new tax breaks for parents, seniors, workers, and car buyersbut with caveats.

• Tightens rules for programs like Medicaid and SNAP, raising potential costs for states and individuals.

A nearly 900-page Republican tax bill is headed for President Bidens desk after passing the House, cementing one of the biggest overhauls of the U.S. tax code in years. The legislation makes permanent the individual tax cuts originally enacted under President Trump in 2017, while introducing new tax breaks and significant changes to federal spending on healthcare, food assistance, and student aid programs.

Consumer advocates denounced the measure. This is certainly one of the cruelest bills in American history, backtracking on the countrys painfully slow history of expanding health care coverage and, equally remarkably, taking food away from the hungry," said Robert Weissman, co-president of Public Citizen.

"The bill will strip health coverage from 17 million Americans and put food assistance at risk for upwards of 5 million Americans."

ButDepartment of Housing and Urban Development (HUD) Secretary Scott Turner said the measure "will revitalize and uplift rural, tribal, and urban communities across America, delivering the largest deficit reduction in decades, providing the biggest tax cut ever for working-class Americans, and expanding the benefits of Opportunity Zones so this transformative policy can have an even greater impact.

"The One Big Beautiful Bill is a massive victory for the American worker, the American small business owner, and the American family, and its just the beginning of Americas Golden Age.

Slashing vital programs that protect civil rights, consumer protections, health care, and education for working families to benefit the rich and powerful is wrong, saidRichard Dubois, executive director of the National Consumer Law Center. The massive cuts to the Consumer Financial Protection Bureau buried in the bill further empower large corporations over people.

Stricter Rules for Medicaid and SNAP

The legislation imposes work requirements for Medicaid enrollees, mandating 80 hours of work per month for many able-bodied adults starting in late 2026. States that expanded Medicaid would also have to charge modest fees for some services for enrollees with slightly higher incomes.

Recipients of Supplemental Nutrition Assistance Program (SNAP) benefits will face stricter work rules as well. The age threshold for mandatory work requirements rises to 65, and states will be expected to contribute more to SNAP funding starting in 2028, potentially straining state budgets.

EVCredits on the Chopping Block

Shoppers considering an electric vehicle (EV) purchase may feel the squeeze. The bill ends tax credits for new and used EVs after Sept. 30, and eliminates credits for home charging stations after June 2026. However, buyers of U.S.-made cars could deduct up to $10,000 in auto loan interest through 2028, with income limits applying.

Bigger Deductions in High-Tax States

For residents in high-tax states, the bill offers some relief by raising the maximum state-and-local-tax (SALT) deduction to $40,000, up from the current $10,000 cap. This higher cap would grow by 1% annually through 2029 before reverting to $10,000 in 2030. However, the benefit phases down for households earning more than $500,000, limiting the boost for wealthier taxpayers.

New Perks, New Limits for Parents

Families stand to gain from an increase in the child tax credit, which would rise from $2,000 to $2,200 starting in 2026 and be permanently indexed to inflation. The legislation also establishes Trump Accounts for children born between 2025 and 2028, seeding each account with a $1,000 government contribution. Families could contribute up to $5,000 annually, with funds accessible in adulthood.

At the same time, the bill tightens borrowing rules for parents with college-age children. Parent Plus loans would face new caps$65,000 total and $20,000 per yearand would be excluded from income-driven repayment plans after mid-2026.

Seniors and Workers

Americans over 65 would gain a new tax deduction of up to $6,000 for individuals (or $12,000 for couples) between 2025 and 2028, available to those earning $75,000 or less. The benefit tapers off for higher incomes.

Workers could also benefit from temporary deductions. Those earning tips may deduct up to $25,000 in tip income from their federal taxable income, while people working overtime could deduct up to $12,500or $25,000 for married couplesfrom 2025 to 2028, provided they earn less than $150,000.

New Loan Restrictions for Students

For students, the bill spells tighter lending limits. The popular Grad Plus program allowing graduate students to borrow up to the full cost of attendance will end in 2026. Instead, graduate students will face annual borrowing caps of $20,500, while professional students in fields like medicine or law can borrow up to $50,000 annually. Overall borrowing would also face new lifetime limits.

The bill also replaces current income-contingent repayment plans with two options: a fixed-payment plan of 10 to 25 years, or a Repayment Assistance Plan based on income but stretching to 30 years. Meanwhile, private colleges with large endowments could see higher taxes, although institutions with fewer than 3,000 students would be exempt.

While Republicans tout the bill as a pro-growth, pro-family package, critics warn it could deepen inequality and increase financial pressure on vulnerable Americans. The full fiscal impact is likely to emerge as provisions phase in over the coming years.

Researchers detected dozens of everyday chemicals in childrens bodiessome not tracked by national health surveys

• Over 90% of the 24 yearolds tested had 34 different chemicals in their urine.

• Nine of these chemicals arent tracked in national health surveys.

• Exposures came from everyday productsplastics, personal care items, flame retardants, pesticides, combustion byproducts, and more.

Chemical exposure has become a hot topic recently, and a recent study explored how toxic chemicals affect preschoolers.

Researchers from the University of California Davis Health worked with the NIHs ECHO program to understand what types of chemicals preschoolers are exposed to.

They zeroed in on a nationally diverse group of 201 children aged 2 to 4 from California, Georgia, New York, and Washington.

Our study shows that childhood exposure to potentially harmful chemicals is widespread, researcher Deborah H. Bennett said in a news release.

This is alarming because we know early childhood is a critical window for brain and body development. Many of these chemicals are known or suspected to interfere with hormones, brain development, and immune function.

The study

The study collected urine samples from 201 preschoolers and tested them for 111 different chemicals. These included:

• Phthalates and phthalate alternatives (found in plastics, toys, food packaging)

• Parabens (from cosmetics and lotions)

• Bisphenols (in plastics and can linings)

• Benzophenones (in sunscreen and plastics)

• Pesticides and organophosphate esters (OPEs used in flame retardants and packaging)

• Polycyclic aromatic hydrocarbons (PAHs from vehicle exhaust, grilling, smoke)

• Bactericides (in antibacterial soaps).
  

This is one of the first studies to test a broad suite of chemicals, including newer or understudied compounds not usually tracked at the national level.

The results

Heres a breakdown of the results:

• Wide presence: Out of the 111 chemicals, 96 appeared in at least five children and 48 were found in over half of them.

• High exposure: Thirty-four chemicals showed up in more than 90% of kids. Importantly, nine of those aren't monitored in surveys like NHANES.

• Possible harm signals: Many of these chemicals are known or suspected endocrine disruptorsmeaning they can interfere with hormonesor may affect brain and immune system development.
  

The study also highlights that toddlers arent just exposed through one sourcethey accumulate chemicals from toys, packaging, household items, personal care products, and ambient air.

Exposure to certain chemicals in early childhood such as pesticides, plasticizers, and flame retardants has been linked to developmental delays, hormone disruption and other long-term health issues, researcher Jiwon Oh said in the news release.

This new study highlights the urgent need for expanded biomonitoring and stronger regulations to protect children from harmful exposures.

What Parents Can Do

While these findings may seem daunting or overwhelming to parents, the researchers offer practical tips to reduce chemical exposure in little ones.

• Choose thoughtfully: Look for items labeled phthalate-free or paraben-free in toys and personal care products.

• Ventilate often: Reduce indoor levels of combustible byproducts by letting fresh air in during cooking or after using cleaning products.

• Stay informed: Follow updates from trusted health sources and advocate for broader tracking of chemicals in children.