As middle- and upper-income taxpayers file their federal income taxes, they face a significant tax on their Social Security benefits, with up to 85% potentially taxable for those earning over $34,000 individually or $44,000 jointly. President Trump proposes eliminating this tax, asserting that seniors shouldn't pay it. However, economists warn against this idea, citing fiscal irresponsibility and benefiting primarily high-income households while aggravating issues for lower-income workers. The Senior Citizens League argues against double taxation of benefits, emphasizing the need for a fairer policy regarding Social Security taxes.
"SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!" Trump wrote on his Truth Social site during the 2024 campaign.
The Penn Wharton business model warned the idea "reduces incentives to save and work while increasing federal debt."
Garrett Watson, director of policy analysis at the center-right Tax Foundation, called the proposal "unsound and fiscally irresponsible."
The nonpartisan Senior Citizens League believes that Social Security benefits are taxed twice - once when a worker earns them and again 'when we need them most.'
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