When Public Policy Becomes Propaganda: The SSA, Social Security, and the Truth Behind the Tax Claims
Public Policy or Political Spin? The SSA’s Misleading Social Security Announcement
By Dr. Elmer Hall
Strategic Business Planning Company | PerpetualInnovation.org
In a time when trust in public institutions is already under pressure, the July 2025 statement from the U.S. Social Security Administration (SSA) has sparked widespread concern. The agency’s announcement, celebrating the One Big Beautiful Bill, claimed that 90% of seniors would no longer pay federal income taxes on their Social Security benefits. But a closer look reveals a different story—one shaped more by political strategy than by sound public policy. This matters not just for retirees, but for civic leaders and nonprofits alike. When misinformation is issued under the guise of official communication, it raises serious concerns for institutional trust, transparency, and governance.
In a rare and troubling development, the Social Security Administration (SSA) issued a statement last week that has raised eyebrows across the public policy and nonprofit sectors—not because of what it said, but because of what it misrepresented.
Following the July 4, 2025, signing of H.R.1—the One Big Beautiful Bill—the SSA released an official statement lauding the bill for “eliminating federal income taxes on Social Security benefits for nearly 90% of seniors.”
But that statement, issued under the name of SSA Commissioner Frank Bisignano, was deeply misleading—and in some parts, outright false. This is not just a policy debate. This is about the erosion of trust in one of America’s most relied-upon public institutions.
What the SSA Claimed vs. What the Law Actually Says
Let’s unpack the core claims in the SSA’s announcement and compare them with the truth behind the legislation:
| SSA Claim | Reality |
|---|---|
| “Nearly 90% of Social Security recipients will no longer pay federal income taxes” | Misleading. According to the Social Security In 2024, ~60% of recipients already paid no federal tax on benefits. The law doesn’t eliminate these taxes; it merely extends a larger standard deduction to seniors over 65. (Note the ~90% really is 88%.) |
| “This is a historic tax relief for seniors” | Exaggerated. The deduction is set to expire in 2028—just three years from now. It’s not permanent (for four tax years: 2025-2028). |
| “Protects Social Security benefits” | Questionable framing. The structure of Social Security benefit taxation remains unchanged. Only a temporary income deduction was added. (SS taxation thresholds have been unchanged since the 1980s and are not adjusted for inflation.) |
Source: SSA Factsheet: https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
In short, the One Big Beautiful Bill adds a bonus standard deduction for seniors ($6,000 per individual / $12,000 per couple), which phases out for higher-income earners and expires after 2028.
It’s also worth noting that Social Security recipients under the age of 65 receive no benefit from this provision. The added deduction only applies to taxpayers aged 65 and older, meaning many disabled or early retirees on Social Security see no change at all.
Why This Misinformation Matters for Nonprofits and the Public
This incident is novel and alarming: a nonpartisan federal agency distributing what amounts to political propaganda.
The SSA is a lifeline for millions of seniors and people with disabilities. Its legitimacy rests on the public’s trust in accurate, apolitical information. When even the SSA begins parroting talking points with exaggerated or misleading claims, that trust erodes.
For nonprofits, especially those serving seniors and low-income populations, this misinformation complicates planning, outreach, and budgeting. For individuals, especially retirees trying to understand how policy changes affect their fixed income, the consequences are real and immediate. For planners and advisors, it adds noise to an already complex tax environment and makes it harder to provide solid guidance.
A Closer Look at the Source: SSA Commissioner Bisignano
The current SSA Commissioner, Frank Bisignano, was confirmed in May 2025. Previously CEO of Fiserv, Bisignano is not a career civil servant but a private-sector appointee. His leadership style may reflect a more corporate or campaign-aligned communication strategy. But that doesn’t excuse bending the truth. Even in today’s polarized environment, federal agencies must be held to a higher standard.
Strategic Planning Takeaways
If you’re part of a nonprofit board, a service club like Rotary, or a planning committee helping individuals navigate retirement and public benefits, here are some immediate actions to consider:
- Re-evaluate financial education materials. Update or clarify any assumptions around tax-free Social Security benefits.
- Communicate honestly with your stakeholders. Share both the relief offered and the expiration date of the deductions.
- Document policy changes. Don’t rely on press releases—read the bill language and use trusted independent summaries (e.g., Investopedia, Congressional Research Service).
- Stay skeptical of “official” statements. Especially those using political branding like “One Big Beautiful Bill.”
Erosion of Trust: When Agencies Amplify Political Messaging
This isn’t an isolated event. We’ve seen similar behavior from the EPA, CDC, and even the Census Bureau in recent years—where science or statistical independence is compromised for narrative control.
This trend isn’t just dangerous—it’s destabilizing. We rely on neutral data to design systems, assess programs, and serve communities effectively.
We must defend truth in public administration as fiercely as we defend freedom of speech or voting rights.
Building Resilience Against Misinformation in Public Institutions
Whether you’re a nonprofit leader, a public planner, or just someone trying to understand how a new law affects your retirement, you deserve honest information—not campaign slogans in disguise.
The SSA must course-correct. And the rest of us must keep asking tough questions when government communications sound too much like marketing.
Table of Estimated Recipient Taxes on Social Security
Links & Dynamic Resources
The HR1 Bill (All ~1000 pages): https://www.congress.gov/bill/118th-congress/house-bill/1
SSA Message: Press Release | Press Office | SSA: Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors
AP News Fact Check: https://apnews.com/article/trump-social-security-tax-relief-factcheck-2025
White House: https://www.whitehouse.gov/articles/2025/07/no-tax-on-social-security-is-a-reality-in-the-one-big-beautiful-bill/
National Council on Aging (NCOA): https://www.ncoa.org/
AARP’s Take on the HR1 Bill: https://www.aarp.org/government-elections/budget-bill-older-americans.html
National Endowment for Financial Education (NEFE): https://www.nefe.org/
What do you think?
Have you encountered confusion around Social Security taxes in your community or organization? How do you build trust when the federal messaging goes off track? Let us know in the comments—or send us a message at info@sbplan.com
Produced with assistance of ChatGPT 4o & Gemini 2.5 Flash on July 6, 2025 based on prompts by E. Hall. Minor updates on July 7 & 8.
Oh. If you get your Fav GenAI to analyze the areas where there are increases and decreases to the deficit from OBBB, you will find that making the tax breaks permanent add about $3T to $3.5T to the deficit, or between 85%-100% of the anticipated added deficit. All tax breaks add about $4.5T to the deficit (or about +130% of the projected deficit).
Additional interest on the expanded debt should increase the deficit by $0.5T to $0.7T.
(Savings from Medicare, SNAP, Renewable Energy, etc., help offset the temp and permanent tax breaks by $1T to $1.5T.)
#PublicPolicy #ResponsibleGovernment