US ELECTION 2024
How would Donald Trump’s economic policies affect Social Security checks?
Throughout his campaign, Trump has suggested he’s willing to cut Social Security and Medicare. Here’s how that would affect you.
One of Donald Trump’s economic proposals that have drawn the most attention is the one to cut taxes paid on Social Security benefits. In the past, the former president had promised not to interfere with these programs, since they represent the main source of income for senior citizens.
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However, during an appearance on CNBC's "Squawk Box" in March of this year, the former White House leader stated that "there is a lot" that can be done "in terms of cuts" to social benefits.
“There is a lot that can be done in terms of entitlements, in terms of cuts, and also in terms of theft and mismanagement of entitlements. There is a tremendous amount of things and a lot of things that you can do,” Trump revealed.
How would Donald Trump's economic policies affect Social Security checks?
Following the controversy caused by Trump's statements, the Republican campaign spokeswoman, Karoline Levitt, issued a statement to clarify the situation, stating that, in reality, the former president was referring to "reducing waste, not entitlements" of the Program, so his actions would not represent a threat to Social Security and/or Medicare checks and beneficiaries.
“President Trump kept his promise to protect Social Security and Medicare in his first term, and President Trump will continue to steadfastly protect Social Security and Medicare in his second term. (...) First, President Trump will quickly rebuild the largest economy in history and put Social Security and Medicare on a stronger foundation for generations to come.”Leavitt argued. Previously, Trump had promised to“always defend Medicare and Social Security.”
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Reducing or eliminating taxes on the income received by beneficiaries, whether retired workers, survivors or those receiving disability payments, would harm the program by cutting one of the main sources of its funding.
Currently, the Social Security Administration (SSA) pays out more in benefits than it takes in income, which will be a bigger problem in a few years because it will not be able to pay full monthly benefits.
Trump’s proposed measure would contribute to the current insolvency problem of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds.