Treasury Secretary Scott Bessent hailed the president’s new investment accounts as a “backdoor for privatizing Social Security.” The Republicans’ “Big Beautiful” budget bill created Trump accounts—a new type of tax-deferred investment account that allows parents to contribute up to $5,

Treasury Secretary Scott Bessent’s comments about the safety net program ventured onto the so-called third rail of American politics.

Key Points The "big, beautiful bill" provides a deduction, but doesn't eliminate the federal tax on Social Security.The amount you owe in federal taxes on Social Security depends on income.State taxes still apply to Social Security regardless of the federal tax rules.