This country does not have a social plan for Americans’ financial benefits is more important than social security. In 2023, it pulled 22 million people to the federal poverty line, including 16.3 million adults 65 and over.
More importantly, this is an overwhelming retirement person who depends on maintaining a living. Gallup conducted a 23 -year annual survey, and 80 % to 90 % of retirees always responded to social security involving “main” or “secondary” revenue sources.
Unfortunately, this precious 90 -year history plan is not the best financial foundation. Strengthening social security will need to include the actions of elected officials, including President Donald Trump.
However, although Trump has promised to achieve the elderly, his greatest social security commitment will be broken.
President Donald Trump spoke to reporters. Image source: Andrea Hanks photo provided by the National Archives Andrea Hanks.
Before further excavation, it is important to understand the motivation of how the Social Security Finance Foundation will worsen with time.
In the past 85 years, the Social Security Commission has released an annual report to introduce the “health” of the plan in detail. The report allows anyone to decompose how social security generates income and track where these dollars are the ultimate.
However, the most valuable aspect in the annual trustee report is to study how currency and fiscal policy changes and how the population transformation has adjusted the long -term (75 years) solvency forecast of trust funds. Remember that social security does not go bankrupt, disappear or fails to pay the danger of qualified beneficiaries. The risk is the continuity of the existing expenditure schedule, including the cost adjustment (colas).
According to the trustee report in 2024, the long -term capital obligations of the plan increased from an estimated $ 800 billion in the previous year to $ 23.2 trillion. In other words, planning expenditures (mainly income, but also administrative expenses of administrative and social security) are expected to exceed the estimated revenue from the income received from 2024 to 2098, reaching $ 23.2 trillion.
It can be said that it is even more worrying that the insurance trust fund (OASI) of the elderly and survivors will exhaust its asset reserves by 2033. OASI is responsible for paying monthly benefits to the retired workers and survivors of the late workers. If OASI’s asset reserves are exhausted within eight years, it may need to reduce the benefits of up to 21 % in 2098 without any further reduction.
The responsibility of the weakened financial prospects with the weakened social security has nothing to do with the general myth of the theft of Congress and the universal myth of immigration. On the contrary, this is the result of many changes in the population, including the low American birth rate in history, the rise in income inequality, and the net legal migration to the United States has decreased significantly
It is expected that by 2033, OASI’s asset reserves will disappear. YCharts At the end of the year’s data, the US elderly and survivors insurance trust fund assets.
Most presidents tend to avoid changes in social security, because any change will eventually cause some people to be worse than before. But this did not prevent Trump from the truth of the social media platform in late July announced that “the elderly should not pay taxes on social security.”
In 1983, the leading retirement plan in the United States found that its situation was somewhat similar to today. Without the actions of legislators, social security trust funds can exhaust their asset reserves. The social security amendment in 1983 ensured that this would not happen.
In order to gradually increase income and wage taxes of revenue and all retirement age, and introduced welfare taxes in the last major two -part party.
Starting in 1984, if the temporary income (adjustment after adjustment+tax -free interest+half of benefits) exceeds $ 25,000, up to 50 % of social security benefits can be exposed to the federal tax rate, while a single applicant is a single applicant. More than $ 25,000. In 1993, if the temporary revenue exceeded $ 34,000 of a single applicant, the second layer increased, up to 85 % of the federal tax, and the income of the couple was more than $ 34,000.
Although most Americans do not like to pay taxes, especially for some reasons, they particularly hate social security benefits: these income thresholds have never been adjusted to inflation.
Welfare taxes are expected to affect about 10 % of senior families more than 40 years ago. However, as the income of wages and cola has increased with the passage of time, more and more retirees are now levied a certain degree of tax on their social security checks.
Trump’s post implies that the end of taxes for social security benefits will increase about half of the expenditure of retirees.
Image source: Getty image.
On paper, there are sufficient support to end the taxes on interests. However, the popularity is not always the most suitable for social security.
Although eliminating this hate tax for benefits will promote the social security inspection of certain retirees, it will further weaken the financial foundation that the plan has weakened.
Social security generates income in three ways:
4 % salary tax for income (wages and wages, but do not invest in income)
The interest obtained by its asset reserves, these reserves are invested in specially issued government bonds
Taxation of social security benefits
The salary tax is an undeniable support for the plan. In 2023, it accounted for 91.3 % of the US $ 1.351 trillion income collected by OASI and Disable Insurance Trust Fund.
But over time, the taxation of benefits has been growing to a more important source of income. If you want to abide by Trump’s commitment and cancel the source of income, it is estimated that it will be collected by the United States’ leading retirement plan for about $ 943.9 billion (from 2024 to 2033) within 10 years. This will not only expand the planned long -term capital deficit of US $ 2.3.2 trillion, but also speed up OASI estimated asset reserves to exhaust the dates, and may even increase the scale of reduced welfare. Trump has no promise to be responsible for finance.
In order to be based on the above, the president also needs to make 60 votes in the Senate to modify the Social Security Law. In 1979, the United States last held a super vote (60) in the House of Representatives. In short, Trump will need two parties to modify social security. high Unlikely-it is not even unclear what kind of support he gets in the Senate party.
Trump breaks his promise of social security is only a matter of time, which is definitely the right decision.
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Forecast: President Donald Trump will violate his social security promise-definitely the right decision, originally published by Matley
