Trump wants to cut taxes on Social Security benefits, impacting current and future beneficiaries. Experts warn these cuts could deplete the Social Security fund three years earlier than expected. Low-income baby boomers and younger generations would be most hurt by Trump's proposal.
Donald Trump plans to make changes to America's Social Security system with his return to the White House in January. The president-elect promised on the campaign trail to cut taxes on Social Security benefits in his second term. "People on Social Security are being killed, and one of the things I'm doing is no tax for seniors on Social Security, and I'll get it done quickly," Trump told "Fox & Friends" in August.
For some baby boomers, lower Social Security taxes could mean larger monthly checks in the short-term. But experts predict that the Social Security tax cuts, along with other campaign promises made by Trump, could quickly drain the national Social Security fund. That would put benefits at risk for low-income retirees and younger generations, who may rely on that income as they age.
"It's designed to help retirees, but the people it's going to hurt are people that rely on Social Security the most," Taylor Lee, a certified financial planner at Belmont Capital Advisors, told BI of Trump's Social Security tax cut. More than 72 million Americans receive Social Security and the estimated average monthly check is $1,907 a month, per the Social Security Administration. Americans can begin taking.
