Trump's Proposal on Social Security Tax Sparks Debate
Donald Trump's suggestion to eliminate taxes on Social Security benefits sparks debates among lawmakers about the financial future.
While Social Security is celebrating its 89 th anniversary, the program itself is facing a lot of financial troubles since the trust funds will be depleted by 2035. However, a crisis triggers a lot of debates among lawmakers on which step should be taken to prevent the worst.
Donald Trump, who was a former president, had made a suggestion that the benefits program should be eliminated from any taxes because this would allow seniors to have more disposable income. However, as it is noted by Rep. John Larson, D-Conn., while a certain proposal provides temporary relief, it does not address the fact that such a suggestion would lead to a huge revenue loss. Therefore, the claim that his bill is leading to the depletion of the Social Security trust funds is not correct.
In fact, Larson’s proposal falls into the Social Security 2100 Act, which tries to increase the period during which the program will be able to pay benefits and expand the payments themselves through higher earnings taxes on high-income earners. In particular, the wished policies are expected to apply the payroll tax on earnings above $400,000 a year and increase the net investment income tax for the country’s well-off taxpayers. I believe that at the moment, such a proposal is the best possibility to conserve the benefits program and not make it a heavy burden for the majority of the population.