$950 Billion at Stake: Trump’s Social Security Tax Cut Promise Raises Concerns

Trump’s Social Security Tax Cut Promise

A Potential Blow to the Program’s Finances

According to the report of CBS News, Former President Donald Trump has promised to get rid of federal income taxes on Social Security benefits. He made this promise during a rally in Harrisburg, Pennsylvania aiming to appeal to the 67 million Americans who get monthly checks from the program. Many seniors support this idea because more of them are facing poverty and reaching retirement without savings.

But experts say this tax cut could hurt Social Security’s financial health. About 40% of people on Social Security currently pay taxes on their benefits, and this money makes up about 4% of the program’s funding. Without these taxes, Social Security would lose $950 billion over the next ten years which could make its funds run out a year earlier, by 2032, leading to bigger benefit cuts.

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(photo: Common Dreams)

Trump’s Plan to Cut Social Security Taxes Gains Support from Seniors, but Hurdles Loom

Trump’s promise is popular with seniors who are dealing with high living costs and financial issues but it might be hard to make it happen. Changing the tax laws needs approval from Congress, and that could be tough if Democrats control the House or Senate. Also, Trump hasn’t shared detailed plans for this proposal yet making people wonder how realistic it is and what the economic effects might be.

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