The Social Security will be forced to make cuts in the benefits by 23% or so in about 10 years if Congress fails to shore up the program’s trust funds before then, but a new analysis from a budget watchdog group warns that Republican presidential candidate Donald Trump’s proposals would bring about the day of reckoning for up to three years and would force an even higher decrease in benefits.
The report from the nonpartisan Committee for a Responsible Federal Budget, which advocates for debt and deficit reduction, concluded that some of Trump’s proposals would widen the projected financial deficit for the year. Social Security. The elimination of taxes on benefits of the Social Security, would reduce the program’s cash balance by about $950 billion between 2026 and 2035.
What the Tax Elimination Process Entails
The elimination of the taxes federal income taxes on tips and overtime would cost nearly $900 billion over the same period, while the mix of more restrictive immigration rules, which would reduce the number of migrant workers paying into the system, and higher tariffs high, which would increase the cost of many goods and, therefore, generate an increase in annual adjustments for the COLA, it would cost about $400 billion.
In total, the proposals would decrease the cash balance of the tax system Social Security, by about $2.3 trillion, over a decade, according to the group’s “central estimate” of the effects of Trump’s plans. (The “low” estimate of revenue loss is $1.3 trillion over 10 years, while the “high” estimate is $2.8 trillion.)
The Consequences of These Plans
As a result, the system of Social Security would be forced to cut the benefits in fiscal year 2031 instead of in 2034, as currently projected. “In other words,” the group said, “the trust funds would be insolvent only six years after the next president takes office instead of nine, which would reduce the remaining life of the trust fund by one-third.” Additionally, the size of the cutout benefits would increase with Trump’s proposals. The current projected 23% cut (about $16,500 a year for a typical two-income household) would become a 33% cut by 2035. There are no plans to affirm the Social Security on the table, none of the presidential candidates has offered a plan to promote the long-term financial health of the Social Security and avoid cuts of benefits projected. However, CRFB analysts noted that Vice President Kamala Harris’ proposals would not have a major negative effect on the trust funds of the Social Security.
Harris campaign spokesman Joe Costello said, “The analysis shows that Trump is a threat to the Social Security system, while the Democratic candidate seeks to safeguard it.” “Vice President Harris is committed to protecting Social Security benefits and is the only candidate who will actually fight for seniors, not just give them verbal support on the campaign trail,” Costello added. Trump spokeswoman Karoline Leavitt completely denied the CRFB analysis and baselessly argued that undocumented immigrants are a serious threat to the immigration system. Social Security. “The so-called CRFB experts have been consistently wrong over the years,” Leavitt said in a statement. “By unleashing American energy, cutting job-killing regulations, and adopting pro-growth America First trade and tax policies, President Trump will quickly rebuild the largest economy in history and put Social Security on a stronger footing for generations to come,” he said.
