A senior tax deduction is accelerating the Social Security trust fund's depletion
KW
Knox Waverly
Social Security cut · Apr 9, 2026
Source: DojiDoji Data Terminal
A dual-earning couple retiring at the start of 2033 could lose roughly $18,000 in annual benefits. This outcome is the result of a projected 24% cut in Social Security benefits, as projected by the Committee for a Responsible Federal Budget.
Such cuts may become necessary if the Old-Age and Survivors Insurance (OASI) Trust Fund is depleted. The Congressional Budget Office expects the fund to run out of money in 2032.
This depletion is being accelerated by the One Big Beautiful Bill Act (OBBBA). The law establishes a $6,000 senior tax deduction that allows most seniors who receive Social Security to avoid paying taxes on their benefits.
Social Security relies on taxed benefits for revenue. The deduction reduces the revenue Social Security receives from taxed benefits, moving the depletion date from 2033 to 2032.
Social Security cutSEC crypto enforcementSEC ESG enforcementSEC retail investor ruleSEC enforcement actionpayment for order flow SEC
The Ledger Morning
The essential intelligence to start your trading day. Delivered 6:00 AM EST.
Join 50,000+ professionals who start their day with The Digital Ledger.