Donald Trump Wins ‘Travels Question’ on Social Security Long Term

President-elect Donald Trump’s election victory is likely to have “significant consequences” and “raise questions” about the funding of the Social Security program, experts have said Newsweek.

Republican Trump will become the 47th president after his decisive defeat by Democrat Kamala Harris on November 5. Among his campaign promises, Trump promised to eliminate taxes on Social Security income, which is paid by about 40 percent of current recipients, according to the Social Security Administration. Security Administration (SSA).

Under current rules, people who earn between $25,000 and $34,000 a year are subject to taxes on up to 50 percent of their Social Security income. If they earn more than this, as much as 85 percent of the benefits can be taxable.

While the promise will put more money in the pockets of recipients in the short term, experts have warned that it could affect Social Security’s coffers. The SSA’s 2023 Trustees Report released earlier this year found that trust funds that support the nation’s largest benefit system for retirees, survivors of deceased workers and the disabled will run out of funds by 2035.

At that point, beneficiaries are expected to receive only 79 percent of their full benefits unless Congress takes action to ensure its solvency.

“This Trump victory could have significant implications for Social Security,” said Cliff Ambrose, founder and wealth manager at Apex Wealth. Newsweek. “His proposed tax cuts aimed at reducing payroll taxes could further strain the Social Security Administration’s funding, since payroll taxes are a primary source of funding for Social Security benefits.”

According to research conducted by the Committee for a Responsible Federal Budget (CRFB) in October, Trump’s policies — including eliminating Social Security income and gratuity taxes, imposing tariffs and speeding up the deportation of undocumented migrants — would escalate Social Security’s cash shortage over the next few years. decade by $2.3 trillion, accelerating the program’s insolvency to 2031—three years sooner than previously predicted.

The think tank estimated that eliminating income taxes on Social Security benefits could result in approximately $950 billion in lost revenue for the SSA.

“The so-called experts at CRFB have been consistently wrong over the years. President Trump delivered on his promise to protect Social Security in his first term, and President Trump will continue to protect Social Security strongly in his second term,” Karoline Leavitt, Det told Trump’s national press secretary in the campaign Newsweek.

“Without a strategy to rebuild or secure funding, these cuts could accelerate the need for reforms such as reducing benefits, adjusting retirement ages or increasing eligibility requirements,” said Brandy Burch, CEO of Benefitbay. Newsweek.

Ambrose agreed that Trump will need to address the incoming deficit to avoid a benefit cut: “The outcome of Trump’s proposal will largely depend on whether alternative financing solutions accompany these tax changes.”