Ending Social Security Tax on Retirees
Donald Trump proposed ending federal taxes on Social Security benefits for retirees, aiming to help seniors pay their bills and restore democratic accountability. The current taxation system disproportionately affects lower-income retirees due to lack of inflation indexing.
Key Points
- Taxation of Social Security benefits originated from a bipartisan reform commission in 1983
- Thresholds for taxing benefits were not indexed to inflation, leading to more retirees being taxed over time
- Proposal aims to raise thresholds and index them to inflation to prevent bracket creep
Pros
- Helps seniors pay their bills
- Restores democratic accountability
- Addresses inflationary bracket creep
Cons
- Potential impact on federal revenue