Baldwin, Wyden Call out Trump Admin for Lying About Social Security Taxes

WASHINGTON, D.C. – Today, U.S. Senators Tammy Baldwin (D-WI) and Ron Wyden (D-OR) led a group of their colleagues in demanding that the Social Security Administration (SSA) stop peddling lies about the Republican reconciliation bill using the agency’s email platform, which reaches tens of millions of Americans.

The Republican reconciliation bill does not amend, reduce, or eliminate federal taxes on Social Security benefits. Contrary to the release’s claim that taxes would be eliminated on 90% of benefits, about half of beneficiaries will still owe some amount of income tax on their benefits. The bill also does not change tax filing requirements for people receiving Social Security benefits. The Trump Administration’s distribution of misleading and blatantly inaccurate information could upend the lives of millions of American seniors who depend on Social Security benefits. Inaccurate information could lead to Americans making benefit claims against their best interests or even missing payments on taxes they owe.

“We are appalled that the agency distributed misleading and blatantly inaccurate information regarding tax changes affecting older Americans, transforming the agency into a partisan megaphone for Donald Trump while sowing confusion and distrust in Social Security among Americans,” wrote Baldwin and the Senators in the letter to SSA Commissioner Frank Bisignano.

On July 3, SSA sent a mass email and issued a press release falsely announcing that the Republican reconciliation bill would cut taxes on Social Security benefits. The agency doubled down on those lies by burying its misleading language on its website and keeping millions of Americans who received the initial email in the dark. Commissioner Bisignano has abandoned his promise to the Finance Committee and to the American people that, under his leadership, SSA would not become a partisan agency subject to the whims of Trump.

“Rather than focusing on improving customer service, you are using your position as Commissioner to stroke Donald Trump’s ego and peddle lies on his behalf. We urge you to retract SSA’s July 3 statement and issue a correction–on SSA’s website and via email for ‘my Social Security’ account users–clarifying the federal tax treatment of Social Security benefits,” Baldwin and the Senators continued.

As Ranking Member of the Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education (LHHS), Baldwin has been a leader in the Senate in holding SSA accountable under the Trump Administration. In February, Senator Baldwin demanded answers from then from Acting Commissioner Leland Dudek on DOGE’s access to Americans’ sensitive Social Security information. In March, Senator Baldwin pressed the Trump Administration on their plans to slash the SSA workforce and called on the administration to reverse course on their plan to instate in-person verification that would put up roadblocks for seniors to access their benefits.

In April, Senator Baldwin continued to demand answers from the Trump Administration on staffing cuts at the SSA and called on the administration to keep Social Security field offices open so seniors can get their earned benefits.

In addition to Senators Baldwin and Wyden, the letter was co-signed by Minority Leader Chuck Schumer (D-NY) and Senators Peter Welch (D-VT), Kirsten Gillibrand (D-NY), Elizabeth Warren (D-MA), Sheldon Whitehouse (D-RI), Bernie Sanders (I-VT), Ben Ray Luján (D-NM), Tina Smith (D-MN), and Catherine Cortez Masto (D-NV).

The full letter is available here and below.

Commissioner Bisignano:

We write in outrage over the Social Security Administration (SSA) using its resources to spread political propaganda and false information. On July 3, SSA issued a press release and a mass email falsely praising the benefits of the Republican reconciliation bill–which in reality will leave millions of Americans without health care or food so that big corporations and the ultrawealthy get huge tax breaks–and falsely announcing that Social Security benefits are no longer subject to taxes. We are appalled that the agency distributed misleading and blatantly inaccurate information regarding tax changes affecting older Americans, transforming the agency into a partisan megaphone for Donald Trump while sowing confusion and distrust in SSA among Americans.

Shortly after the House passed the legislation, SSA issued a press release–posted on the agency’s website and emailed to all “my Social Security” account users–stating that the bill “eliminates federal income taxes on Social Security benefits for most beneficiaries” and provides some older Americans with an additional income tax deduction. This is wholly inaccurate. The Republican reconciliation bill does not amend, reduce, or eliminate the federal taxation of Social Security benefits. While the bill does provide a temporary income tax deduction for some older Americans, only about 46 percent of older adults would benefit from this deduction. The SSA press release claimed the bill would eliminate taxes on Social Security for 90 percent of beneficiaries, but the truth is that about half of recipients will owe some amount of income tax on their benefits.

Furthermore, the bill does nothing to change the tax filing requirements for Social Security recipients. An official press release claiming that Social Security benefits are not subject to tax creates confusion that could cause Social Security recipients to misunderstand their tax obligations. Your July 7 effort to correct the record–which retains the misleading language about “eliminat[ing] federal income taxes on Social Security benefits”—is hidden on a days-old press release on Social Security’s website. Moreover, you did not send this “correction” to the millions of “my Social Security” account users you mass emailed this incorrect and misleading information.

SSA has worked hard over years to encourage individuals to sign up for “my Social Security” accounts, which allow users to access online services and provide valuable information about their Social Security benefits, all while reducing pressures on Social Security field offices and teleservice centers. You have effectively used information provided by those signing up for these services to create a political mailing list of over millions of Americans. This is not only wholly inappropriate but jeopardizes the integrity of “my Social Security” accounts if the information provided to users is clearly politically motivated.

Having only been Commissioner for two months, it is disappointing that you devoted one of your first public statements to peddling inaccurate information to appease Donald Trump. As Commissioner, you know Social Security plays a critical role in the lives of millions of Americans. The decision on when to begin claiming Social Security is an incredibly personal decision that depends on the individual’s unique financial, medical, and family circumstances. To make that decision, individuals must have clear and accurate information about Social Security, including the tax treatment of benefits. Providing confusing or inaccurate information may lead Americans to make benefit claiming decisions against their best interest or mistakenly fail to pay taxes owed. Moreover, pushing blatantly partisan statements breeds distrust in the agency, which may raise doubt about the truthfulness of future statements.

During your confirmation process, you pledged to the Finance Committee and to the American public that you would run SSA “in an independent and nonpartisan manner.” You have failed in this instance. Rather than focusing on improving customer service, you are using your position as Commissioner to stroke Donald Trump’s ego and peddle lies on his behalf. We urge you to retract SSA’s July 3 statement and issue a correction–on SSA’s website and via email for “my Social Security” account users–clarifying the federal tax treatment of Social Security benefits.

Sincerely,

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