"Not only did Trump not cut Social Security, but he also introduced a new tax break for seniors that allows millions of older Americans to now avoid paying federal taxes on their benefits. Many would consider that a win. But one thing Trump has so far failed to do is address Social Security's pending financial shortfall. And if he and his team don't start working on solutions, the millions of retirees who rely on those benefits could be in for a world of financial upheaval."
"In the coming years, the program is expected to owe more money in scheduled benefits than it brings in via payroll taxes, which is Social Security's primary source of funding. The root of the problem stems from an aging population. As baby boomers retire in droves, they're claiming benefits while denying Social Security the crucial payroll tax income it needs. Younger workers, meanwhile, aren't replacing boomers in the workforce at a fast enough rate to make up for that lost payroll tax revenue."
Donald Trump did not cut Social Security benefits and implemented a tax break that lets millions of seniors avoid federal taxes on their benefits. Trump has not addressed Social Security's looming financial shortfall. The program is projected to pay more in scheduled benefits than it collects in payroll taxes because an aging population and retiring baby boomers reduce payroll tax revenue. Younger workers are not entering the workforce fast enough to replace that revenue. Combined trust funds could cover scheduled benefits through 2034, but that projection could change. Without legislative intervention, broad benefit cuts are likely once trust funds are exhausted.
Read at 24/7 Wall St.
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