President Trump's Biggest Social Security Proposal Could Be Bad News for Retirees
A small short-term benefit could end up costing much more in the long run.
One of the biggest voting issues for seniors in last year's U.S. Presidential election was Social Security. There's good reason for that. The government program is essential to the budgets of millions of Americans. Roughly half of people age 65 or older receive 50% or more of their income from Social Security, according to data reviewed by the SSA.
President Trump appealed to these voters in his campaign by saying he would work to make sure they get the most possible from the program. That includes a proposal to eliminate taxes on Social Security benefits. Not only are taxes on Social Security income complicated, but they also present an additional financial burden on many households collecting benefits.
However, eliminating the tax on Social Security comes with some bad news for retirees too. As with everything in economics, there are some significant trade-offs.
