Trump wants to stop taxing Social Security benefits. Here’s what that could mean for seniors
CNN
A few weeks after promising to eliminate taxes on tips, former President Donald Trump has unveiled a second proposal for targeted tax relief. The beneficiaries this time would be senior citizens, an influential voting bloc.
A few weeks after promising to eliminate taxes on tips, former President Donald Trump has unveiled a second proposal for targeted tax relief. The beneficiaries this time would be senior citizens, an influential voting bloc. “SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!” Trump posted Wednesday on Truth Social. While lifting the levy would benefit many older Americans for a little while, the proposal would harm the popular entitlement program, as well as Medicare and the federal budget, if Trump and Congress don’t come up with a way to replace the lost revenue, said Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget. What’s more, many seniors could ultimately be hurt if Social Security and Medicare’s trust funds run dry sooner and benefits have to be cut. “Certainly, seniors would enjoy it for several years,” Goldwein said, noting Trump’s proposal would benefit higher-earning older Americans more. “But it hastens the insolvency of Social Security and Medicare, and it increases the size of the across-the-board cut.” In an interview that aired Sunday, Trump reiterated his promise to eliminate taxes on Social Security benefits but did not specify how he would pay for the proposal. When Fox News’ Maria Bartiromo asked how he would offset the lost revenue, Trump said he would focus on eliminating “waste” and “fat” in the federal government – but did not say what he would cut. Social Security benefits began being taxed in 1984 as part of the last major federal overhaul to shore up the program’s finances. Any changes to tax law would need to go through Congress.
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