Donald Trump pledges tax cuts, trade wars and border crackdown
Former President Donald Trump reiterated his commitment to eliminating taxes on Social Security benefits in a recent interview, yet he did not provide specifics on how he would offset the revenue loss from this proposal.
When Fox News’ Maria Bartiromo questioned Trump on how he planned to balance the budget with this tax cut, Trump emphasized his intention to eliminate waste in the federal government.
“Well, you know, one of the things good about that is, that’s when people will make a deal. … But we’re going to take care of Social Security, we’re not going to do anything to hurt our seniors,” Trump stated. He did not, however, identify which areas of “waste” and “fat” he intended to cut.
According to the Committee for a Responsible Federal Budget, taxes on Social Security benefits are projected to generate about $94 billion this year. Currently, seniors with a combined income below $25,000 per individual (or $32,000 for married couples) are exempt from these taxes. Above these thresholds, up to 50% of their benefits may be taxable, with the revenue directed to the Social Security retirement trust fund.
The committee’s analysis suggests that eliminating this tax would increase federal deficits by $1.6 trillion to $1.8 trillion through 2035 unless Congress finds alternative revenue sources. This move would also expedite the depletion of the Social Security retirement trust fund by over a year and drain Medicare’s hospital insurance trust fund six years earlier.
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