Donald Trump has won the presidential election, and Americans are closely watching to see how he will handle various economic issues, including Social Security. The program currently faces a funding crisis that could see benefits slashed by roughly 20 percent by as early as 2035. During his campaign, Trump pledged not to cut any benefits once he becomes president.
“I will not cut one penny from Social Security or Medicare,” he said at a rally in Florida this July. “And I will not raise the retirement age by one day.”
However, in other interviews, Trump seemed to indicate that cuts could be on the horizon. “There is a lot you can do in terms of entitlements, in terms of cutting,” he told CNBC in March.
Despite this, he later reassured voters that he would “never do anything that will jeopardize or hurt Social Security or Medicare.”
A report from the Committee for a Responsible Federal Budget found that Trump’s economic plans could dramatically worsen Social Security’s finances, increasing its funding shortfall by $2.3 trillion. More than 72 million Americans rely on Social Security.
Trump’s impact on Social Security
Some experts warn that Trump’s proposals to eliminate taxes on Social Security benefits could inadvertently create a larger financial gap for the program. Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, commented, “Taxes on Social Security benefits, especially for a growing aging population, bring in significant revenue to the federal government and would expand the deficit further if eliminated.”
Staffing for the Social Security Administration has also been an issue in recent years, with advocates calling for cuts to staffing that have resulted in longer wait times for recipients experiencing issues with their benefits. Michael Ryan, a finance expert and founder of michaelryanmoney.com, suggests that Social Security reform needs to address several critical factors.
Americans are living longer and having fewer children, which changes the worker-to-beneficiary ratio. Moreover, the payroll tax cap causes higher earners to contribute a smaller percentage of their incomes. “Massive, sudden changes to Social Security are unlikely because of the program’s popularity and importance to so many voters,” Ryan said.
“But incremental changes? Those are certainly possible.”
Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
