Trump proposes ending tax on Social Security benefits

 August 1, 2024

Donald Trump has called for an end to taxes on Social Security benefits.

The pitch - part of a broader push of tax relief for working class voters and seniors living on tight budgets - could complicate the efforts of Democrats to keep Trump out of the White House by fearmongering about his fiscal agenda.

"SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!” Trump wrote on Truth Social.

Trump's Social Security proposal

The Social Security tax was enacted by President Ronald Reagan to help keep Social Security solvent. Retirees pay taxes on up to 50% of their Social Security benefits, and up to 85% if their income is above $34,000.

As president, Trump flirted with ending the payroll tax that workers must pay to fund Social Security. But he has been generally supportive of the program, breaking with the GOP's traditional skepticism of it.

The party's 2024 platform includes an explicit pledge to leave Social Security and Medicare alone.

"President Trump has made absolutely clear that he will not cut one penny from Medicare or Social Security," it reads.

Seniors are particularly important voters in swing states like Michigan, Pennsylvania and Wisconsin, which will be heavily contested in November.

Trump has similarly called for an end to taxes on tips in a pitch to service workers struggling under inflation.

Trust fund faces insolvency

While Trump's proposal for Social Security would leave seniors with more cash in their wallets, it could also exacerbate the Social Security insolvency crisis. The trust fund is set to run out of money in the 2030s, at which point retirees would receive reduced benefits.

Without a solution, Social Security benefits will get automatically cut by 21% and Medicare Part A will get slashed by 11%.

Democrats have long accused Republicans of wanting to gut Social Security and upend the lives of seniors. Presumptive Democratic presidential nominee Kamala Harris has doubled down on those attacks, picking up where Joe Biden left off when he ended his re-election bid.

Despite the partisan rhetoric, for the most part, entitlement reform has become a third rail that neither party wants to touch.

In the short term, Trump's proposal could help fend off accusations that he wants to end this popular program that millions of Americans rely on and spend their working lives paying into.

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