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Debate Over One Big Beautiful Bill Act: Social Security Tax Impact

Former Michigan Representative Mike Rogers has recently been involved in a controversy regarding his statements about the One Big Beautiful Bill Act and its impact on Social Security taxes. Rogers, who served in Congress from 1995 to 2015 and has announced plans to run for the U.S. Senate again, claimed that the law would eliminate taxes on tips, overtime, and Social Security.

In a July 3 statement, Rogers said, “President Trump and Republicans just delivered a monumental victory for hard-working families across the country–including eliminating taxes on tips, overtime, and Social Security.” He reiterated this claim in a radio interview on the Justin Barclay Show on July 10, emphasizing the law’s benefits for Michigan residents.

Despite these assertions, the law does not entirely remove Social Security taxes. Instead, it introduces new deductions for seniors amounting to $6,000 for individuals and $12,000 for couples. These deductions are available to those earning up to $75,000 for individuals or $150,000 for couples, with the benefits gradually phasing out at higher income levels. These deductions are set to expire at the end of 2028.

The Social Security Administration echoed Rogers’ sentiment in a July 3 press statement, claiming the law would eliminate taxes on Social Security benefits for 90% of recipients. However, Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, refuted this in an interview with CNBC, stating, “The people who benefit the most, we estimate, are people who made between $50,000 and $200,000.” He emphasized that these individuals would see a reduction in taxes, but not their complete elimination.

Additionally, the law includes payroll tax cuts, which are crucial for funding Social Security. Gleckman warns that these cuts could threaten the program’s long-term financial stability.

The legislation also poses risks to other senior-reliant programs. The Congressional Budget Office predicts that 11.8 million Americans will lose Medicaid, and 3.2 million will lose SNAP benefits under the new law. Currently, about 9.4 million seniors are on Medicaid, and 4.8 million receive SNAP.

State Senator Mallory McMorrow, a Democratic candidate for the U.S. Senate in Michigan, has issued a statement opposing Rogers’ view. She warned, “Here in Michigan, hundreds of thousands will lose health care. Rural hospitals may close. Nursing homes may close. Farmers, grocery stores will be devastated by cuts to SNAP.”

The Cook Political Report currently labels Michigan’s 2026 U.S. Senate race as a “toss-up,” highlighting the competitive nature of the upcoming election.


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