Social Security Changes Proposed by President Trump Could Be Bad News for Retirees
Donald Trump during his recent presidential campaign promised on several occasions that he would not touch Social Security. But he also proposed eliminating federal income tax on benefits, overtime pay, and tips, all of which provide funding for the Social Security program.That is particularly consequential because the program is already running annual deficits, such that the Social Security Trust Funds, the source of benefit payments, may be depleted in 2034. Benefits would automatically be cut if that happens. And any tax law changes that reduce program revenue would only make the problem worse.Specifically, the Committee for a Responsible Federal Budget estimates that ending taxes on benefits, overtime, and tips would accelerate trust fund depletion by three years and increase the size of the subsequent benefit cuts. Here's what retired workers should know.Continue reading
Donald Trump during his recent presidential campaign promised on several occasions that he would not touch Social Security. But he also proposed eliminating federal income tax on benefits, overtime pay, and tips, all of which provide funding for the Social Security program.
That is particularly consequential because the program is already running annual deficits, such that the Social Security Trust Funds, the source of benefit payments, may be depleted in 2034. Benefits would automatically be cut if that happens. And any tax law changes that reduce program revenue would only make the problem worse.
Specifically, the Committee for a Responsible Federal Budget estimates that ending taxes on benefits, overtime, and tips would accelerate trust fund depletion by three years and increase the size of the subsequent benefit cuts. Here's what retired workers should know.
