No tax a Social Security benefits?

Apparently Republicans in Congress have figured out that not taxing Social Security benefits directly affects the Trust so they are considering a way around it – sort of.

Instead, lawmakers are considering getting to a similar endpoint by increasing the standard deduction that can be claimed by people age 65 and over. 

Rep. Nicole Malliotakis (R., N.Y.), a member of the tax-writing Ways and Means Committee, has proposed increasing that deduction to $5,000 from $2,000 for individuals and to $10,000 from $3,200 for married couples where both spouses are 65 or over. She rallied with AARP officials on Monday in her district on Staten Island to build support for the idea. 

Those amounts would come on top of the general standard deduction, which this year is $15,000 for individuals and $30,000 for married couples.

Write to Richard Rubin at richard.rubin@wsj.com

It’s hardly a similar endpoint as totally tax-free benefits which would be a much higher benefit for many seniors – but equally irresponsible in terms of federal revenue and spending.