House Passes Trump-Backed Bill with $4,000 Senior Tax Deduction

The House of Representatives narrowly passed the "One Big Beautiful Bill," a sweeping legislative package supported by President Donald Trump that includes a temporary $4,000 tax deduction for seniors aged 65 and older from 2025 to 2028. This deduction, intended to provide tax relief to low- and middle-income seniors, phases out for higher earners and translates to an estimated savings of up to $880 annually for most qualifying seniors, as it reduces taxable income rather than providing a direct tax credit. While fulfilling Trump's campaign promise to eliminate taxes on Social Security benefits in a modified form, the bill has sparked criticism due to its broader impacts, notably Medicaid work requirements that could strip health coverage from millions and cuts to programs supporting renewable energy. The bill also raises the state and local tax deduction cap for homeowners in high-tax states and increases child tax credits, but faces opposition for potentially adding $2.5 trillion to the national debt over ten years according to government analysts, despite White House claims of net deficit reduction. Democrats argue that the tax benefits come at the expense of vulnerable populations, including seniors, veterans, and children, who may face reduced healthcare and social services. Speaker Mike Johnson and Republican leaders are pushing for passage amid a slim majority, emphasizing the bill's potential to deliver significant tax relief to millions of Americans.