The Committee for a Responsible Federal Budget estimates the expanded senior deduction, along with other tax cuts, could cost $30 billion annually. This might accelerate the depletion of the Social Security Old-Age and Survivors Insurance Trust Fund from early 2033 to late 2032.

Senate passes Trump-backed bill ending Social Security taxes for retirees, but changes may speed up trust fund insolvency and face hurdles in the House.

Up to 85 percent of Social Security benefits can be taxed—but a new deduction will reduce how much seniors need to pay.