Posted on Tuesday, July 8, 2025
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by AMAC Action
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Following the passage of President Donald Trump’s “One Big, Beautiful Bill” (OBBB) last week, opponents of the law have resorted to fearmongering in a desperate attempt to turn public sentiment against this transformative piece of legislation.
Instead of debating the bill on its merits, critics are spreading panic and misinformation – especially about how the bill will impact seniors. But despite all the lies and manipulation, older Americans are one of the groups from whom the One Big Beautiful Bill will benefit the most. It’s time to set the record straight.
Myth: Seniors in nursing homes will be hurt by OBBB
Reality: The OBBB exempts nursing homes and immediate care facilities from any provider tax changes. A provider tax is a state-assessed fee on nursing home revenues that triggers a larger federal Medicaid match. Because of these exemptions, the cash flow to long-term care facilities remains steady.
In other words, nothing in the legislation strips a single dollar from the bed-side care seniors rely on.
Myth: OBBB will increase taxes on seniors
Reality: OBBB actually creates a brand-new $6,000 additional tax deduction for Americans 65 and older. According to the Council of Economic Advisers, OBBB will raise the share of seniors whose exemptions and deductions exceed their annual Social Security benefits to 88 percent, up from 64 percent under current law. That means nearly nine in ten seniors will owe nothing on Social Security income, and many will see their overall tax bill plunge.
Myth: Seniors who are still working will face higher taxes
Reality: OBBB cuts marginal tax rates across the board, boosts the standard deduction, and enlarges the child tax credit – all of which apply equally to older Americans who remain in the workforce. Lower brackets mean every extra hour a senior work is rewarded, not punished. Meanwhile, the higher standard deduction protects part-time earnings from ever touching the taxable column in the first place.
Myth: Senior small business owners will pay more under OBBB
Reality: The legislation slashes taxes for every pass-through business, whether the owner is 25 or 75. It also expands full expensing, so mom-and-pop shops can write off new equipment the year it’s purchased, freeing up capital to hire, raise wages, or simply extend the life of a family enterprise. Importantly, the OBBB also protects seniors working to pass their businesses to the next generation from the nightmare of the death tax. For seniors who built their businesses over decades, OBBB is a green light to keep growing instead of downsizing.
Myth: “Medicaid cuts” will kick vulnerable seniors off their health plans
Reality: Even after OBBB’s reforms, Medicaid spending is still projected to rise roughly 20 percent per year – hardly a cut. The bill kicks illegal aliens and able-bodied adults without dependents off the program, redirecting resources to the elderly and truly vulnerable. By closing loopholes that exploded under Biden-era mismanagement, OBBB shores up Medicaid so seniors don’t have to fight line-jumpers for care.
Myth: Seniors nearing retirement will have fewer health-care options
Reality: Far from limiting choice, OBBB super-charges Health Savings Accounts (HSAs) and explicitly allows seniors to use them for Direct Primary Care (DPC) memberships. That means retirees can pay a flat monthly fee for unlimited doctor visits, extended appointments, and tele-health access – without wrestling with insurance middlemen. More freedom, not less bureaucracy, is the real outcome.
MYTH: OBBB threatens rural hospital funding and will force closures
REALITY: Rural facilities represent only about 7 percent of total Medicaid hospital spending, proving they never shared in the Biden-era binge of waste, fraud, and abuse. OBBB fixes that imbalance by creating a dedicated $25 billion Rural Health Fund: $10 billion in FY 2028 and 2029, $2 billion in FY 2030 and 2031, and $1 billion in FY 2032. Funds flow not just to hospitals but also to rural health clinics and community mental-health centers. The left’s “closure” talking point is a claim straight from hospital corporation lobbyists with zero zip codes outside urban America. OBBB targets dollars where they belong: bedsides, not boardrooms.
Democrats can keep screaming “cuts” and “catastrophe,” but the numbers don’t lie. OBBB locks in and widens the tax relief seniors first tasted under the 2017 Tax Cuts and Jobs Act, turbo-charges opportunity for older Americans who still punch the clock, and reins in the reckless Medicaid giveaways that endangered the very programs retirees depend on.
In short, President Trump’s One Big Beautiful Bill isn’t a threat to seniors – it unleashes more opportunity for prosperity.
Here are what AMAC small business owners said about the need to pass the One Big Beautiful Bill in April:
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