Is Donald Trump’s proposal to eliminate Social Security taxes legal?

“Seniors should not pay tax on Social Security”, Trump wrote on Truth social, proposing to end taxes on benefit income.

In all capital letters, as he likes the do, the former President reaffirmed what he had previously stated in a Fox & Friends interview at the start of August this year. The bold move sounds good for the beneficiaries, although many have been quick to state that it would not be all unicorns and roses...

Rep. John Larson, D-Conn., told CNBC.com in an exclusive interview that the idea from Mr. Trump, while legal, would be a “fatal mistake” as there is no way that the money saved could be covered and would in fact lead to a huge cut in the money given to those who need it most.

“He comes out and says he’s going to have a tax break but doesn’t say how he’s going to pay for that,” explained Larson, “in essence, his proposal would end up cutting the Social Security trust fund.”

Despite the fact that Social Security, established by President Franklin D. Roosevelt’s administration in 1935, celebrated its 89th anniversary just last week, the system faces an uncertain future, with trust funds expected to be completely depleted by the year 2035, with across-the-board 17% benefit cuts predicted is the worst happens. Due to the retirement of baby boomers, approximately 10,000 people enter the Social Security program each day, pushing things to the limit.

Retirement benefits are in even more dire straits, and are due to run out in 2033, something which would suppose a 21% cut.

A similar bill was introduced in January, which could save the typical household almost $560 per year.

However, if pushed through, the move would increase federal deficits by $1.6 trillion to $1.8 trillion through 2035, according to CNBC. Incidentally, a Trump campaign spokesman did not return a request for comment by the outlet.

Ahead of Medicare, Social Security is the government’s single biggest item in their budget and is also the most extensive programme they take care of. Sitting at $1.4 trillion, it took up a staggering 21% of the budget in 2023, covering an estimated 182 million workers across the country.

As for Kamala Harris, she advocated for maintaining and expanding Social Security during the Biden administration, aiming to reform the program. She also backed President Joe Biden’s proposal to increase taxes on Americans who earn $400,000 or more annually. At present, Social Security taxes apply only to the first $168,600 of an individual’s earnings.