Update on Social Security cuts

According to a neutral budget group, Donald Trump’s campaign plans could damage the already rfast approaching day when Social security Funding is expected to run out. Trump’s proposal would render the popular government program that millions of American seniors rely on insolvent within six years, cutting the current timeline by a third, the group said. The Committee for a Responsible Federal Budget’s US Budget Watch 2024 project stated that the Republican candidate’s plans will also result in even more severe benefit cuts in coming years and increase Social Security’s financial deficit by trillions of dollars .

The new date for the Social Security check reduction was announced in November

In a statement to CNBC, CRFB spokesperson Karoline Leavitt claimed that the organization’s so-called experts have repeatedly made mistakes over the years. According to Leavitt, Trump will continue to vigorously defend Social Security in his second term. She claimed that the real danger to the program’s viability was Democratic challenger Kamala Harris, claiming her ideas would bring in a wave of undocumented immigrants that would cause Social Security to buckle and collapse. Supplemental Security Income benefits are only available to specific non-citizens.

Furthermore, the Congressional Budget Office estimates that by fiscal year 2034 Social Security Trust Funds will run out. October marks the start of the financial year. According to Social Security administrators’ projections, the program’s total coffers may only be enough to pay full benefits through 2035. However, the trust fund that Social Security depends on to pay retirement benefits could expire even sooner, in 2033. In any changes, Trump and Democratic vice presidential nominee Kamala Harris have promised to restore Social Security and Medicare, the government’s managed health insurance program, to ‘protect’.

At the same time, Trump has promised to implement a growing list of tax cuts targeted at specific groups of Americans. He has proposed lowering corporate taxes even further. eliminating taxes on overtime and tips paid to service workers, eliminating taxes on monthly benefits for seniors, and imposing broad, sweeping tariffs or duties on imported goods. The CRFB said in its Monday article that the tax cut ideas “would all increase Social Security’s cash shortfalls,” in addition to Trump’s promise to begin mass deportations once he takes office. In particular, the group concluded that his plan:

• Increase the 10-year deficit by $2.3 trillion through FY 2035;
• Extension of the insolvency timeline to FY 2031 from FY 2034;
• Cause an overall benefit reduction of 33% by 2035 (versus the CBO’s current projection of 23%);
• Increase the annual deficit by approximately 50% by FY 2035;
• To restore Social Security’s 75-year solvency, current payouts would need to be cut by nearly a third, or revenues would be increased by about half.

According to Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare, these findings are not surprising since Trump’s policies include tax cuts that provide significant money to Social Security trust funds. Freese warns that lowering income and payroll taxes could have a significant impact Social securityespecially considering that the trust funds will be depleted within a decade, and could have a dramatic impact in the long term depending on the proposed policies.

Harris has received presidential endorsement from the National Committee to Preserve Social Security and Medicare. Andrew Biggs, former chief deputy commissioner of the SSA and senior fellow at the American Business Institutestated that he does not think the Trump campaign is trying to weaken the SSA. Because they come up with different ideas, I just don’t think it’s in their heads. While certain measures, such as eliminating taxes on benefits or specific types of income, would have a direct impact on benefits, other policies, such as limiting immigration, would also have an impact on the program, he added.