President Trump has pledged to eliminate taxes on Social Security benefits, which may provide financial relief for many seniors. However, this approach is flawed as it risks undermining the program's solvency. Social Security is predominantly funded by payroll taxes, and with the aging baby boomer population, the revenue is diminishing. By 2035, the trust funds are expected to be depleted, potentially resulting in benefit cuts of more than 20%. A more measured alternative could involve adjusting the income thresholds for taxable benefits.
President Trump's proposal to eliminate taxes on Social Security aims to save seniors money but risks pushing the program toward insolvency.
Many Americans rely solely on Social Security in retirement; taxes on benefits could impact their financial stability as income sources decrease.
Social Security is primarily funded by payroll taxes, and with baby boomers retiring, the revenue stream is shrinking, threatening the program's sustainability.
Social Security cannot technically go broke, but by 2035 its trust funds could be depleted, leading to potential benefit cuts for seniors.
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