Donald Trump’s recent proposal to eliminate Social Security taxes for seniors has sparked a debate about the future of the retirement program.
During a Fox & Friends interview, the former president outlined his plan to ease the financial burden on older Americans.
Under current rules, Social Security benefits become taxable when a person’s combined income exceeds $25,000.
The tax rate increases with higher income levels.
Trump aims to change this, arguing that seniors on fixed incomes are struggling.
“People on Social Security are being killed,” Trump said in the interview.
He promised to remove taxes on Social Security benefits for seniors, stating he would “get it done quickly.”
President Trump: NO TAX ON SOCIAL SECURITY! pic.twitter.com/3GJSRXJcFj
— Trump War Room (@TrumpWarRoom) August 7, 2024
Trump also mentioned plans to eliminate taxes on tips and raised concerns about immigration’s impact on Social Security.
He claimed that incoming immigrants are straining the system, though it’s worth noting that only legal immigrants who meet work requirements can typically access these benefits.
While Trump’s proposal might offer immediate relief to seniors, financial experts warn of potential long-term consequences.
Some think tanks suggest that removing these taxes could speed up Social Security’s march toward insolvency.
The Committee for a Responsible Federal Budget and the Tax Foundation both predict the program could run out of funds two years earlier than current estimates if this plan is implemented.
Kevin Thompson, CEO of 9i Capital Group, told Newsweek that while seniors would see more money in their pockets, the change “would require significant changes to the program.”
These changes might include stricter eligibility requirements or reduced benefits overall.
BREAKING: Trump's plan to eliminate taxes on tips for restaurant and hospitality workers will influence over 12 MILLION Americans, the majority of which are in larger cities
I predict a few more million voters are switching to Trump because of this one statement
GENIUS pic.twitter.com/YJlDwmZqFr
— George (@BehizyTweets) June 9, 2024
The proposed tax cut isn’t cheap.
Analysts estimate it could cost $1.6 trillion over a decade, raising questions about how to fund Social Security in the long run.
Alex Beene, a financial educator at the University of Tennessee at Martin, acknowledges the appeal of Trump’s idea but cautions about its impact on Social Security’s budget. “You also have to consider Social Security is facing a coming budgetary shortfall that will make funding the program more difficult,” Beene explained to Newsweek.
READ NEXT: Former Green Energy Giant and Left Wing Darling Files For Bankruptcy, Will Wind Down Operations
As the 2024 election approaches, Social Security reform is likely to remain a hot topic.