Social Security: What Donald Trump’s Win Means

Now that Donald Trump has won the presidential election, Americans are watching how he handles many economic, foreign and domestic issues.

A main concern throughout the election campaign has been Social Security, which is currently facing a funding crisis that would see benefits cut by about 20 percent as early as 2035.

Trump has been vocal in his promise not to cut any Social Security benefits when he becomes president.

“I’m not going to cut a dime from Social Security or Medicare,” Trump said at a campaign rally in Florida in July. “And I’m not raising the retirement age by one day.”

But in other interviews, Trump talked about how he would solve Social Security’s funding crisis and appeared to indicate that cuts could be on the horizon.

“There’s a lot you can do in terms of entitlements, in terms of cutting,” Trump told CNBC in March.

A few weeks later, he said he would “never do anything that will bring or hurt Social Security or Medicare,” in an interview with conservative news outlet Breitbart.

A report by the Committee for a Responsible Federal Budget (CRFB) found that Trump’s economic plans would “dramatically worsen Social Security’s finances.” His policies would increase Social Security’s funding shortfall by $2.3 trillion, according to the CRFB.

Newsweek contacted Trump for comment via email.

More than 72 million Americans rely on Social Security, and some of Trump’s other calls to get rid of taxes could inadvertently cause a bigger financial hole when it comes to benefits for seniors, experts say.

The funding crisis could be exacerbated by Trump’s calls to end taxes on Social Security benefits, causing the SSA trust fund to shrink even further. In addition, Trump promised voters that he would stop taxing tips, implement tariffs and deport more undocumented immigrants, all of which could lead to less money going to Social Security funding.

“The Trump campaign floated the idea of ​​eliminating Social Security taxes months ago, but it’s hard to see such a proposal seeing the light of day,” said Alex Beene, a financial literacy instructor at the University of Tennessee at Martin. Newsweek. “Taxes on Social Security benefits, especially for a growing aging population in the United States, generate significant revenue for the federal government and would widen the deficit further if eliminated.”

Staffing for the Social Security Administration is also an issue during Trump’s second term.

“Republicans have been prominent in recent years advocating for cuts in staffing the department, and the result has been longer wait times for beneficiaries who are having trouble receiving benefits,” Beene said.

Michael Ryan, a financial expert and the founder of michaelryanmoney.com, said Social Security reform needs to focus on a few critical factors.

First, Americans tend to live longer now and have fewer children, changing the ratio of workers to beneficiaries. The payroll tax cap also means that higher earners contribute a smaller percentage of their income.

“Massive, sudden changes to Social Security are unlikely because of the program’s popularity and importance to so many voters,” Ryan said. “But incremental changes? It’s certainly possible.”