Former President Donald Trump’s proposal to eliminate taxes on Social Security income has sparked a renewed debate about the benefits that millions of Americans rely on and could be a major factor in deciding the all-important senior vote this election.
In a Truth Social post on July 31, Trump wrote, “SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!” He has since followed that up with a specific pledge to work to eliminate taxes on Social Security income if he is re-elected in November.
The news has sent the corporate media into a panicked frenzy, as an army of liberal “economic experts” quickly declared that Trump’s proposal was unrealistic to the point of being absurd and would surely bankrupt the program. CNBC has worriedly repeated Democrat claims that such a move would be a “fatal mistake,” Forbes asserted that “experts say funds could run out quicker if [Trump is] elected,” and CBS’s own “experts” insisted that cutting taxes “would ultimately harm the program.”
But the liberal establishment’s real worry is, of course, that eliminating taxes on Social Security income would be immensely popular with high-propensity senior voters. It would also necessitate the federal government cutting wasteful spending elsewhere – likely starting with Democrats’ slush funds for fomenting a “green revolution,” which would be on the chopping block if Trump becomes the next president.
Trump’s proposal has created an ironic role reversal of sorts when it comes to the traditional political positions on Social Security. While Republicans have long warned about the looming insolvency of the problem and the need for reform, it is now Democrats who are insisting that eliminating taxes on Social Security income – in effect handing beneficiaries bigger checks every month – will put the program in greater financial jeopardy.
According to official government figures, at its current pace Social Security will be insolvent by 2033. The Committee for a Responsible Federal Budget estimates that eliminating taxes on benefits would speed up that timeline by one year, to 2032.
Either way, Social Security is barreling toward a fiscal cliff.
But what the liberal doomsayers conveniently ignore is that Congress will never allow a benefits cut to actually happen. As Nancy Altman, the president of Social Security Works, an openly anti-Trump interest group, has herself admitted, “The funding shortfall is an action-forcing event… There is absolutely zero chance that Congress is not going to act and let that go into effect.”
Leaders on both sides of the aisle recognize that allowing benefits to lapse would be political suicide. As dysfunctional and gridlocked as Congress has become, politicians still have an astonishing capacity for compromise and action when their grip on power is threatened.
Politics aside, Trump’s proposal just makes good sense and is a simple way to help a group that has been disproportionately hard hit by the 20 percent inflation the country has seen during the Biden-Harris administration.
According to a recent analysis from The Senior Citizens League, Social Security checks have lost 20 percent of their buying power since 2010 – the vast majority of which has come over the past four years. Although beneficiaries do receive cost of living increases, those have lagged behind inflation.
Unsurprisingly, as many seniors rely on Social Security as their sole income source, poverty among seniors is on the rise. 17 million adults over the age of 65 now fall into the category of “economically insecure.” Many Americans approaching retirement age are also being forced to delay their plans amid the rising cost of living.
Notably, the Social Security tax itself is a relatively recent invention. From passage of the Social Security Act in 1935 until 1984, Social Security income was not taxed – meaning that the program and the country can function just fine without the tax.
Even when the tax was put in place, it only applied to a relatively small number of recipients – those for whom their annual adjusted gross income and half of their benefit amount exceeded $25,000. But that threshold remains exactly the same today. As a result, while only about 10 percent of Social Security recipients had their benefits taxed in 1984, that figure is now about 50 percent.
In total this year, the 67 million households that receive checks will pay about $94 billion in taxes on them. Putting that money back in the pockets of beneficiaries would be a huge relief.
Moreover, some economists believe that eliminating the tax on Social Security income might actually be a net positive for government revenue. There is good reason to believe that many beneficiaries avoid employment in order to remain below the income threshold to avoid having their benefits taxed. But if this barrier were removed, many seniors would likely seek other outside employment to supplement their income, and would pay taxes on that income worth more than what the government would lose by not taxing Social Security income.
Trump’s proposal might even have a chance of garnering some bipartisan support in Congress. Earlier this year, Democrat Representative Angie Craig of Minnesota introduced the “You Earn It, You Keep It Act,” which would eliminate taxes on Social Security. Although Craig’s bill would pay for those tax cuts through the unsavory means of increasing tax rates on current workers, it at least signals that some Democrats are open to the idea.
Along with being good policy, Trump’s plan would be a political winner with a demographic he needs to perform well with this fall. While Trump won voters aged 65 or older by nine points in 2016, he won that same group by just four points in 2020 – the biggest swing toward Democrats of any age group. Given that seniors are far more likely to show up at the polls than younger voters, reversing this trend is crucial for the 45th president to win back the White House.
Shane Harris is a writer and political consultant from Southwest Ohio. You can follow him on X @shaneharris513.
Re-taxing all of us for the retirement program that we already funded from each of our paychecks during our entire working lives doesn’t seem above-board. The interest on that money should have accumulated for the payers instead of being misallocated to purchase “Democrat” votes. The most descriptive term for this arrangement is “theft”.
joe biden in 1984 was the deciding vote to tax ss eliminate that tax for good thank you donald trump
My husband are mainly receiving only Social Security as income. This proposal would, certainly, give us the break we need to fix our home. As it is, we have money taken out every month to pay taxes that could be used, not only for our home, but for our monthly needs.
I support this proposal, completely.
In addition to not taxing SS, what about paying back all the money Congress pilfered from SS? It has been a slush fund for them for years. It is time that it was stopped!
I completely agree with Donald Trump wanting to eliminate taxes on Social Security. We have put money into it for years to help sustain us through our senior years. The government has raided our social security fund for years with no intentions of providing it restitution. They continue to do it by taxing our retirement monies. This is the only way to provide retirees the restitution of what they have been stealing from us.
Trump is right . Do not tax Social Security benefits received by elders . That program has been so poorly mismanaged that recipients are already not receiving what they should be receiving . I hear the same program as run in the country of Chili pays recipients much more . I also hear the the State of Texas had its own Social Security system and it too paid its recipients much more than the federal system . Most of the problems are caused by Democrats in Congress who keep adding more and more non-supporting recipients to the system , thereby pairing down the payments of retirees .
Taxing social security is like being taxed twice. The government has dipped in the social security pot since its inception. That money, if it had stayed in the pot since the act was passed in 1935, we wouldn’t now be in this position. Giving 25,000 dollars to first time home buyers and supporting the invaders with 1400 dollar stipend every month plus free health care and education. Plus student loan payoffs is not breaking the treasury of the US. Why is SS such a hot button issue with the dems? Why do they want to eliminate it? Because they want to get rid of us. The responsible, silent generations. Who built, defended America has a duty to die. The dems have nothing with seniors. They ruined Medicare because all the money goes to the invaders and our SS as well. Don’t be fooled by the dems their hatred towards humanity is more evident every day. They throw money and more money at the problem but are not solving the problem. They know it doesn’t work in practice they only throw it out there to get votes. What Trump did in his 4 years as president the dems tore down in just one year of the 4 years they have been in the White House. They govern by executive order. No representation, the people have no say. They are worried they might lose tax revenue to send to the Ukraine and Iran. Don’t believe this administration they lie and rule with an iron fist to break America into bankruptcy to keep the power forever. And once we the people lose that we will never get it back. The incompetency of the dems is palpable and let’s do America a favor and vote Trump/Vance in 2024.
I am missing on how eliminating taxes on SS benefits will affect the SS program. Taxes on SS benefits are not plowed back into the SS fund. SS benefits are funded by FICA taxes on working individuals.
I withdraw from my IRA and once I exceed a certain amount, I get taxed on my SS benefits. I am usually taxed on 85% so I am paying 14% tax on 85% of a benefit I paid into over my working years. Being taxed on my IRA withdrawls is understandable since I contributed before taxes were with held but I was taxed on my working income which was also taxed to pay FICA.
That should be, my husband and I, mainly, receive only social security as our income.
I”ve, actually, thought of going back to work, but one main thing stops me. My husband needs his medication and treatment. Both of us have medical needs. If I went back to work, we would lose our benefits. That would be devastating as our income is less than $1,600 a month.
There is no such thing as a SS fund wherein the SS taxes collected each year from all working Americans goes into it like a savings account. The amount “collected” simply goes into a ledger entry and congress spends it. The ledger entries have accumulated into a surplus but the entries are projected to zero out in 1933. Payments to SS recipients each year just come out of the general fund. In 1934 they will simply continue to pay SS recipients out of the general fund and be part of the yearly deficit spending.
The tax on social security needs to be eliminated sooner than later. While one side is actually offering true solutions for Americans and investing in prosperity for all. The other side thinks that government is the only answer and is offering no more than empty promises to get elected to continue their assult on what has made America the best country in the world and a becon of light.
If your situation, neighborhood, city or wallet to just name a few is not any better from years of voting for a certain party, then take a good hard look at all the false promises that have been told and change your own course of who you vote for. Look at he facts of who inspires growth for America. Stop falling the lies some tell just to get eleted
I completely concur that Social Security should not be taxed. It isn’t earned income; rather, it’s savings that we were mandated to contribute to. I would have preferred to invest that money myself to finance my retirement. The Federal Government has taken it from each paycheck throughout a lifetime of labor. It is a Socialist program that takes away individuals’ money, and when it is gradually and partially distributed, it should not be regarded as taxable income.
I would suggest to Trump that all taxation on Retirement funds should be stopped!! We’ve paid our dues through 50+ years of paying taxes on our wages!! We shouldn’t have to pay anything more!!!!!
You state that in 2020 there was a less percentage of seniors that voted for Trump than in 2016. You base your statement on a fraudulent election count.
Taxes on Taxes is wrong.
Do you want the wicked witch of the west (california) to decide how much you pay for food?? To decide your wages?? To send spys into your companys and punish them if they are nt following her and the liberal elites rules and restrictions?? “Or, if they really do their job and with a little bit of luck, the Communist Party of the United States of America,”?? Vote her and the marxist democrats away…and save our children.
NO scrap the Tax Code & IRS
Vote for Donald J.Trump in 2024.
A vote for Harris/ Walz is a vote for Communism.
The America we’ve know will be gone forever!
TRUMP/VANCE 2024!
Yea, Yea we all know Trump is right about everything yet let me once again remind everyone that the democrats are Corrupt, the Rhino Republicans are still supporting them, the 2019 election WAS RIGGED, and they got away with it with the help of OUR PARTY’s Rhinos and our Party hasn’t done squat to ensure a fair election in November. The democrats continue to attack Trump in their corrupt legal system and our Party hasn’t gone publicly to defend him or counter their lies and false prosecution attempts by going after the dems and rhinos in court with the truth. We know Trump knows the truth about everything but if something isn’t done to stop the democrats train of election corruption Trump will once again get screwed in November and so will we for the final time. It’s time for all the Conservative press to start flooding the Internet, Papers and television with the facts on what’s really going on.
We should take the next step and make Social Security optional. Otherwise SS is a Ponzi Scheme. You will do much better investing on your own.
A government benefit that is taxed has never made sense. Not taxing Social Security makes more sense than that other Trump proposal, not taxing tips. The latter will lead to an escalation in tip expectation among service providers even where it is not now expected.
The government gives with one hand and takes away with the other. House and Senate members who would oppose this plan by Trump may not get reelected. I’m for it, as long as spending is drastically reduced in other areas, and there is plenty of waste to cut.
We should eliminate the 16th amendment, the IRS, and the income tax. Our country used to do just fine with tariffs on foreign goods, until the civil war which necessitated the income tax for a while, then it was gone until Woodrow Wilson – D resuscitated this financial vampire that sucks the very lifeblood, and vitality of our nation’s economy, and served as the basis for an ever growing federal government that has with its continually increasing demand for more money, turned into a life-threatening cancer for our constitutional republic. Time to end the income tax, it will free the American people, shrink federal government, create American jobs, bring manufacturing home, and strengthen our national security, however, if it is supposed to be really effective we will also have to eliminate the “Federal” Reserve Bank, and its non-governmental and unaccountable, arbitrary sway over our economy and the continued ups and downs leading to recession, and depression,the ongoing cycle from boom to bust.
I am presently receiving SS. I am not reliant on it because of other retirements and my wife still works, that said the tax should be either eliminated or cut back to where it was before 1983.
Then there is the part about seniors changing their votes to Democrat in 2020. Which actually shows so many in our age group are gullible to an unimaginable level. If these people would actually read instead of watching the news they have always watched they would learn something.
Like several others in this discussion thread, I fail to see how taxes on Social Security income affect the Social Security program at all. The revenue from such taxes are simply considered part of the overall revenue to be spent on Federal Government general expenses.
Perhaps someone can explain why so many of the contributors to this forum think that the taxes on Social Security income negatively impacts on the Social Security finances? It certainly impacts the taxpayers but I see no financial hits, either way, on the Social Security program itself.
In plain language, eliminating income taxes on Social Security income does not have to be “made up somewhere else”, regarding teh Social Security program. However, there would be a concern about the loss of Social Security tax money that now goes into the general operating funds of the Federal Government but so what? The Congress critters spend ever more borrowed money anyway no matter how much money is paid in by the American people and businesses.
I’m not counting SSI as part of my retirement. To me it’s bonus income that’ll be taken away in a few years after I start drawing on it (according to when SSI becomes insolvent), so I’m all for removing the tax. If kumbaya steals the election, I probably won’t receive any SSI at all. We’ll all be standing in line to pay $10 for a moldy loaf of bread.
Those of us still working to ‘keep our head above water’ usually pay tax on 85% of that benefit. Better than nothing I guess as I have received more than I paid in, but still working and paying in now.
If social security contributions had been kept in a separate fund earning and growing, the benefits available to pay seniors would be greater. Treasury has used our money over the years. If social security is taxed, the payment doesn’t buy as many groceries. I hope we will see a new point of view: growth to pay off the debt so we can accomplish worthy goals with proportionate taxes. The democrats seem to be stuck proposing additional taxes everywhere they can find. Taxing unrealized gains is the strangest idea, but when greedy people want more money, they become so imaginative. I hope they fail.
We paid into SS so taxing the benefit would amount to double taxation. My Mother paid into the SS program all her working life and died at age 63, not having collecting a dime! If the democrats would stop raiding the fund, we would not have this issue. Seniors deserve their money without having to pay taxes on it. For many, SS is their only source of income.
Social security wouldn’t be in the position it is if it wasn’t used as a personal bank account!!!
The majority of working people already know that its our money which we earned dutifully, whether we wanted to or not.
KEEP YOUR $?%& PAWS OUT OF OUR COOKIE JARS!
What lead to the SS fund becoming defunct is the fact that the government stole from it decades ago and never put it back. When they got sued by the Citizens, we were basically told too bad. The money belongs to the government and they don’t have to pay it back. How that made sense is beyond me, but it is what happened. The SS fund was success and in surplus. The money was stolen from the SS fund to pay for other BS government programs that they couldn’t afford. They stole from the people funding SS. I will never understand how they got away with that. The money in that fund doesn’t belong to the government. It belongs to those people who contribute to it for their retirement.
I don’t understand how not taxing social security benefits can make the program insolvent sooner. If I am wrong let someone explain it to me. I understand that over a threshhold of $44,000 that 85% of social security payments are taxable as Federal Income, but I don’t believe you pay FICA taxes on your social security benefits. Since Social Security is funded by the FICA taxes how does not paying income tax on those benefits affect the Social Security Trust Fund?
When SS first came out the benefits were untaxed as the payment for it was taxed already.
Government saw a large chunk of money that was ‘untaxed’ and twice voted to tax it, once 50% now 75%.
I don’t have much is Roth IRA’s as I trust that the government will decide to tax the gins on it also.
Biden voted FOR both increases in the SS benefit Tax
Summarized response: “If the disaster, led by hidden people, cowards who have no guts to show their face, are moving us to oblivion. Stand up people, stand up!”
Ss should not be taxed ,how can anyone think it’s ok to tax seniors when SSI is given to illegals along with other give aways, they did not work for it, they did not pay it in but politicians think it’s ok to steal from Americans to give to foreigners. Government should be accountable to the citizens who pay them.
Our government is growing like a scary huge monster. They need are the tax money they can get from the taxpayers. The government workers get great pensions. Fauci’s pension is $365,000 a year. My friends pension from the FAA is $165,000 a year. My pension from a large company is $8,000 a years. Hmmm
Good useful article. Did the author mean to say”While republicans have long warned about the looming insolvency of the program, (problem) and the need for reform, … ? Just checking. Was once a CCR. A certified court reporter. But great articles as usual.
Don’t get me wrong, but I absolutely love Trump because he loves this country and believes in the rights that our founding fathers gave us over 2 centuries ago. But I think if instead of eliminating taxes on SS he could save the entire program just by taking that $94 billion paid in taxes and put it back into the SS fund and benefits would never run out ever.
The US Government has become one big Ponzi scheme. You can’t kick the can down the road indefinitely. One of Trump’s best plans is to eliminate these redundant agencies that serve no purpose or even cause harm like the Board of Education.
Paying Federal income taxes actually benefit me. For I always receive back the money I paid as a refund. I then use the refund to pay the first half of my Property Taxes. If I would not be able to do that it make it very difficult to be able to pay Property Taxes. I voluntarily pay Federal Income Tax.
Actually paying taxes on Social Security benefits me. Every year I get the taxes I paid on Social Security as a refund. I then use the refund to pay Property Taxes. If I would be able to do that it then be very difficult to pay Property Taxes.
Social Security would not be close to insolvency if the politicians in both parties hadn’t spent the money to buy votes.
They could at least move the amount up from 25000, for singles to something that has been adjusted for inflation. It has been that amount for many years. You get a retirement check from money you saved your whole working life and now they tax your social security.
Oh-oh, Kamala’s going to steal this one too!
It should go even further. Eliminate or reduce other taxes as well for seniors on a fixed income. Taxes like property, sales, etc. should be considered.
Taxing us on SS benefits is theft plain and simple. I’m not really surprised that our government would do so though. Now I want to know why AMAC is not making a big lobbying campaign to get our all knowing representatives to eliminate these taxes that burden so many. If they are I have never heard about it.
Senior citizens shouldn’t have to pay taxes on our SS benefits as it was prior to 1984. There is also a simple fix to fund SS! Anyone who makes over 165K (not exactly sure if it’s 165 or 168) do not pay into SS when they reach that income ceiling. Why not??? Start making income earners over that amount to start paying. Problem solved!
I’m age 69. I worked for 40 years until I retired. Since I took my social security checks, I have always paid taxes on 85%of the benefits. I didn’t know that it was NOT taxed for the first 49 years of the program. I viewed Social Security paycheck deductions as insurance premiums to guarantee a primary retirement and disability income. Many insurance payouts are NOT taxable. So perhaps Social Security payments should not be taxable.
I think the government needs to deal with Social Security system changes to keep the system solvent. I’m not sure why they didn’t do so 20 or so years ago. The issue is that people live longer, so payments are extended over a longer period. It is common sense that the minimum age to receive SS should be raised over time in steps that reflect the current life expectancy. Phase the changes in overtime and in advance of people meeting the minimum retirement age. If you are 25-30, and the age is raised by five years, it is far into the future and has no significant impact. It should NOT be raised for people 55-60; that would be unfair.
I also think that the Democrats don’t want a smooth transition in the Social Security benefit plan. They want it to go insolvent and then use means-testing to determine who gets that benefit. So, it one has a good retirement plan payment that may make them ineligible for some or all of their social security. Otherwise, I find it hard to believe that this known long-term issue hasn’t been solved.
Social Security is dead in the water, The social security act of 2024 is an example of the chipping away that is going on unopposed by neither party or AMAC or AARP. Those of us already in this program will see social security sliced and diced until it will be no more for us who paid into it for 30 – 50 years. Those of us who waited to take it until age 70 will have our benefits reduced to what we would have gotten at FRA and then they will take 35% out of that. And they’re going to keep taxing that as before. And even after social security is gutted, they will increase the social security tax on your paycheck because there are still projects that need to be paid for unrelated to social security that are paid for out of that fund. In just a few short years we won’t be able to recognize the social security of the past decades, it’ll be gone. Of course, both parties will blame the other and AMAC and AARP will continue to ignore it’s decline as they have.
I understand that it was FDR’s intention that payments to retirees from Social Security would be tax-free. Workers would still pay in to the fund so the “bankruptcy” scare on the democrats seems out of line. Will this also apply to my RR Retirement?