How the Big Bad Bill actually effect Social Security taxes and tips: Or why in the heck am I paying more, rather than less taxes? July 11, 2025

The Big Bad Bill passed Congress. Linda and Bill discuss the impact of this piece of legislation on the taxing of Social Security beneficiaries. They also discuss the fraudulent claims of Mr. Trump that tips will not be taxed. In the final section, we note that cause-and-effect reasoning is irrelevant when policymakers and the public both prefer magical thinking about the consequences of proposed policies.