This analysis by the Heritage Foundation spotlights how the proposed federal tax reform would impact retirees.
Retirees may be the most concerned about what tax reform will mean for them, as most rely on relatively fixed incomes.
But in fact, the proposed reforms are mostly good news for retirees. For the most part, they would be less affected than other Americans, as the proposed reforms would not change the way Social Security and investment income are taxed.
Many retirees would in fact benefit from the tax bills’ doubling the size of the standard deduction.
While seniors’ earnings and pension income would be subject to new individual income tax brackets and rates, those changes would actually mean tax cuts—not increases—for an overwhelming majority of seniors and retirees.
The article then walks through 5 hypothetical examples of retirees at various income levels to demonstrate how the tax reform would specifically impact each one.
The bottom line, according to the article: “American seniors can rest assured that this bill is a win for them.”