Trump Promised Not to Cut Social Security and Then Quietly Did It Anyway

Trump pledged not to cut Social Security and to prevent current retirees from paying taxes on their benefits. A $6,000 senior tax deduction was created to reduce most recipients’ income enough to exempt many from taxes on Social Security benefits. The deduction did not eliminate taxation for everyone, but it reduced the number of beneficiaries who owe taxes. Social Security faces solvency pressure because obligations exceed incoming revenue. The OASI Trust Fund was projected to pay full benefits until 2033, but the Congressional Budget Office moved the depletion date to 2032. The change was attributed to the effects of the $6,000 deduction on revenue.

"One thing Trump specifically pledged to do was not make cuts to Social Security. He also said he did not want current retirees paying taxes on their Social Security benefits. Technically, Trump fell down on both promises, though. While he didn't directly make cuts to Social Security, a key tax change on his part may have brought the program closer to insolvency. And while he tried to do away with taxes on benefits, he didn't quite succeed there, either."

"To combat that, Trump introduced a new $6,000 senior tax deduction as part of the One Big Beautiful Bill Act that was signed into law last year. That deduction doesn't get rid of taxes on Social Security benefits. But what it does is reduce most recipients' income to the point where they're exempt from paying taxes on their benefits. But in an effort to let seniors off the hook from having their Social Security taxes, Trump may have created another big problem."

"Social Security is facing solvency issues as the program's financial obligations exceed its incoming revenue. Last year, the Social Security Trustees projected that the program's Old-Age and Survivors Insurance (OASI) Trust Fund would only be able to pay benefits in full until 2033, at which point it was expected to run dry. But earlier this year, the Congressional Budget Office moved up the depletion date of the OASI Trust Fund to 2032. The reason? Trump's $6,000 senior tax deduction."

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