Concerns Rise Over Social Security’s Potential Cuts In New York

At this point, Social Security is the popular girl who doesn't know she's popular. Every other week, it seems like someone is trying to do something to or change Social Security. And there have been significant changes since the new administration took control of the Social Security Administration.

Elon Musk's DOGE closed Social Security offices around the country, including two in New York State. But it hasn't been all bad. The federal government is giving tax credits to Social Security recipients. The 'One Big Beautiful Bill Act has put a tax credit in place for Social Security recipients in New York. It doesn't actually get rid of taxes on Social Security; it instead offers a tax credit. The tax relief is temporary and only for a very short period. It will take effect in 2026 and will end after 2028. New Yorkers who are aged 65 or older and have an income of up to $75,000 for an individual or $150,000 for married couples can take a $6,000 tax deduction. Additionally, the tax relief could pose problems for the Social Security program in the long run.

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However, there is a bill that pushes for the complete removal of taxes on Social Security income. Democratic Senator Ruben Gallego, from Arizona, introduced the ‘You Earned It, You Keep It’ Act, which would permanently get rid of federal taxes on Social Security benefits. The no tax benefit would apply to all income brackets. If the bill passes and is signed into law, taxes on Social Security benefits would end in 2026. Senator Gallego said, “Trump claimed he ended taxes on Social Security. My bill actually does it. Permanently.”

There are some potentially big changes on the horizon. Trump’s Social Security Administration Commissioner, Frank Bisignano, said changes are on the horizon! Bisignano was asked by Fox News about raising the retirement age to deal with the fiduciary issues that Social Security is facing. He told Fox, “I think everything’s being considered, will be considered.”

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That's scary news for those who have been paying into Social Security but are not of age to reap the benefits. The current age to be eligible for Social Security benefits is 67. He did offer a reassuring, but unsettling take on the entitlement, telling Fox, “Remember, most people told you and I Social Security wasn’t going to be around, and it’s going to be around. And so the generations that are coming in will probably have a different set of rules than we had.”

The issue at hand is that Social Security faces insolvency by 2032. Giving tax breaks to Social Security recipients now does not help. The sustainability of the entitlement is in question. As someone who is not of age to get my Social Security benefits (which I have been paying into since the age of 14), that sounds disturbing. I'm not convinced that the federal government is looking out for me and you. There have been a lot of promises made and broken since last year. I seriously wonder if Social Security will be another thing that gets gutted to pay for tax breaks for billionaires.

Bisignano walked back his comments, but I'm not convinced. As someone who has been paying into Social Security for three decades, I hope that I and people in my generation don't get screwed out of what we are owed for temporary political gain!