The presidential campaign is in full swing, and analysts are concerned by some of the proposals by former president and Republican candidate Donald Trump. In his haste to promise to protect Social Security from cuts, he mas made a few campaign promises that could end up damaging the program even faster, which is concerning.
One of the most alarm raising proposals has been one to promise to stop taxing Social Security benefits, which, although good on the surface, would accelerate the depletion of the Trust funds that sustain the payments and leave seniors will smaller benefits even faster than projected. The Committee for a Responsible Federal Budget, a nonpartisan government control agency has calculated that the program would run out by 2031 instead of the predicted 2035, forcing the predicted 30% cut in benefits.
Marc Goldwein, the committee’s senior policy director shared his disbelief in an interview stating, “I don’t think I’ve ever seen a plan that would have this big of a negative effect on solvency in a general election campaign.”
The Trump campaign seems to be doubling down on the promise, publicly stating that the Committee for a Responsible Federal Budget has been “consistently wrong throughout the years” and with Karoline Leavitt, the campaign’s national press secretary, boldly stating “By unleashing American energy, slashing job-killing regulations, and adopting pro-growth America First tax and trade policies, President Trump will quickly rebuild the greatest economy in history and put Social Security on a stronger footing for generations to come, all the while eliminating taxes on Social Security for America’s well-deserving seniors.”
Cutting taxes on Social Security benefits
The cost breakdown of this promise is clear to those who analyzed the situation. The tax cuts the former president has promised to enact would cut Social Security revenue by about $2.3 trillion over a decade, according to data from the Committee for a Responsible Federal Budget. The proposal that would do the most damage without a doubt would be the elimination of federal income taxes on Social Security benefits, which would drain the program’s revenue by $950 billion over 10 years.
Most beneficiaries pay taxes on their Social Security benefits, about half of them total, but only if their combined income is higher than $25,000 per individual, or $32,000 for married couples. The new measure would cater to those earning between roughly $63,000 and $206,000, not exactly the struggling seniors. Those making less than $63,000 would hardly see a change in their taxes but would be hit the hardest when the Trust funds ran out of money.
Other campaign promises. Eliminating taxes on tips and overtime
Both Trump and Vice president Kamala Harris have vowed to eliminate federal income taxes on tips, but while the democratic nominee has stopped there as the rest of the taxes (like payroll) count towards Social Security, Trump has taken it a step further. He has promised to eliminate both income and payroll taxes on tips, which would cut another $900 billion in revenue to Social Security.
The irony of the measure is that most tipped workers do not eat enough to pay income tax, but they do pay payroll tax, meaning that less than 3% of all families would receive a tax cut and those who need it the most would only see a $200 reduction, which would be negligible for them, but catastrophic for the program. For those who would benefit from the cut, they would eventually get even smaller Social Security payments after they retire since benefits are tied to earnings reported to the program.
Read More:-
- The 25 cent coin that can make you a lot of money really fast – They pay $20,000
- Florida Will Distribute Stimulus Check – Like Payments of Up to $450
- Important Update on Past Payment of Stimulus Checks – The IRS Did This Investigation
- New tax refund announced by the IRS – Only for residents of this state
Max Richtman, CEO of the National Committee to Preserve Social Security and Medicare summarized the new proposed policies with a comment over Trump’s “overall recklessness with Social Security,” by criticizing the measures “Once again, Trump postures as a friend of the working class, then puts forward plans that endanger the benefits working people have earned — and depend on in retirement. It is irresponsible for a presidential candidate to advocate plans that would hasten the insolvency of the Social Security trust fund
Note: Thank you for visiting our website! We strive to keep you informed with the latest updates based on expected timelines, although please note that we are not affiliated with any official bodies. Our team is committed to ensuring accuracy and transparency in our reporting, verifying all information before publication. We aim to bring you reliable news, and if you have any questions or concerns about our content, feel free to reach out to us via email. We appreciate your trust and support!
, triggering an even larger automatic benefit cut if that happens.”
ChiefsFocus is a dedicated news writer with extensive experience in covering news across the United States. With a passion for storytelling and a commitment to journalistic integrity, ChiefsFocus delivers accurate and engaging content that informs and resonates with readers, keeping them updated on the latest developments nationwide.