Trump To Cut Taxes On Social Security!

[Editorial]
Wow, what's wrong with that?

That really sounds great, but…

Are you paying income tax on Social Security now? Um… no. Did you know only 40% of the people pay taxes on social Security! You want to guess who the 40% are? The Social Security Administration writes...

About 40% of people who get Social Security must pay federal income taxes on their benefits. This usually happens if you have other substantial income in addition to your benefits. Substantial income includes wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on your tax return.

You want to guess who the 40% are? The eliminating taxation on Social Security benefits would higher-income recipients, for low-income individuals who receive Social Security benefits it will have no benefit.

Kiplinger reports,

What's Wrong With Trump's Pledge to End Taxes on Social Security Benefits
Eliminating taxes on Social Security benefits could impact your finances. Here's what you need to know.
By Gabriella Cruz-Martínez
12 August 2024

Former President Donald Trump is promising to repeal taxes on Social Security benefits, a campaign pledge some experts say could potentially cause more harm to the program than good.

The proposal is meant to entice the 67 million U.S. households who receive monthly benefit checks from the retirement and disability program. Currently, up to 85% of Social Security benefits can be subject to federal tax, depending on a taxpayer’s combined income. But with poverty rates among older adults and people with disabilities on the rise, people wonder who this proposed tax cut would help, given that Social Security recipients with low incomes already don’t pay taxes on their benefits.

“He’s talking about getting rid of the taxation, which increases the benefits, but the very benefits that are subject to taxation will be much reduced,” Nancy Altman, president for Social Security Works told Kiplinger. “So basically, it’s not an honest proposal.”

It figures coming from Trump.

What’s more: Fully exempting taxes on Social Security benefits could drive the program’s retirement and Medicare hospital insurance trust funds into insolvency even faster, an analysis from the Committee for a Responsible Federal Budget found.

In other words, millions of beneficiaries would see reduced benefits as early as 2032. Here’s what the proposal could mean for your wallet.

And that my friend is the ultimate goal of the Republicans they hated Social Security from day 1! Kiplinger goes on to write...

The Tax Policy Center (TPC) estimates that lower-income households would get little to no benefit from Trump’s proposed tax cuts on Social Security benefits.

For instance, people making $32,000 or less wouldn't receive a tax cut since most of their Social Security income is already untaxed. Meanwhile, households earning between $32,000 and $60,000 annually would get an average tax cut of about $90.

•     Less than 1% of the lowest-earning households (those making about $33,000 or less annually) would get a tax cut
•     About 28% of middle-income households would get a tax cut
•     About 20% of households earning more than $5 million a year would get a tax cut

Those earning between $63,000 and $200,000 would see an uptick as a percentage of their after-tax income, the analysis found. But only those in the top 0.1%, or those making $5 million or more annually would see the largest tax advantages. On average, they’d get a tax cut of nearly $2,500 per year.

Once it is the billionaires that get the tax cuts!

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