President Trump, the president-elect, has vowed to overhaul the way things are done in Washington during his second term. Some of the promises he made as a candidate include mass deportations, extremely high tariffs on all imports; further tax cuts; and more deregulation.
But suppose Trump’s new policies affect the social security retirement benefits of the 54 million Americans? Below are the top two changes in Social Security he intends to put into law:
1. Get Rid Of Federal Tax On Social Security Benefits
Currently, approx 40% of people pay ”federal income taxes” on their social security benefits. It depends whether those receivers fall into this group or not.
Up to 85 percent of a Social Security benefit may be subject to federal income tax determined by an individual’s combined income (adjusted gross income plus nontaxable interest plus one-half of such individual’s Social Security benefit) and federal tax filing type.
Trump desires tax elimination for seniors. He is a politician who proposes abolishing federal taxes on Social Security benefits. Recently, the You Earned It, You Keep It Act was the most recent attempt to do so and introduced into Congress just this year.
Historically, benefits were not taxed at the federal level for the most part, until a bipartisan plan was put in place in 1984 to bolster Social Security on a financial footing.
2. Strengthen Social Security From More Oil And Gas Drilling
During the Republican presidential nomination race, Trump advised that of Florida Governor Ron DeSantis’ proposal that would increase the full retirement age so that Social Security can “survive.” Trump stated on Fox News, speaking to the network’s Sean Hannity during a town hall meeting, “You don’t have to touch Social Security.”
Will These Changes Happen Only On The Year 2026?
In the first year of his re-establishment, significant changes to Social Security are unlikely. But is it possible in 2026? Maybe. That’s a stretch, too.
The main trick regarding elimination of federal income taxes on Social Security benefits is that it will drain the trust funds before projected. Trump is not going to be able to obtain the necessary 60 Senate votes to bypass an all-but-certain filibuster regarding this issue.
Could the GOP attach language to eliminate federal taxes on Social Security benefits in a budget bill that cannot be filibustered? Answer: No. The Byrd rule forbids changes to Social Security through budget reconciliation.
