Former President Donald Trump’s campaign plan would significantly speed up the already fast approaching date when Social Security funding will run out, The nonpartisan budget group said Monday.
Trump’s agenda will make popular government programs people rely on Millions of older AmericansThe group found insolvency after six years – cutting the current timetable by a third.
“U.S. Budget Watch 2024,” a project of the Committee for a Responsible Federal Budget, said the Republican candidate’s proposal would also expand Social Security’s cash gap by trillions of dollars and lead to deeper benefit cuts in the coming years.
“We find that President Trump’s campaign proposals would significantly worsen Social Security’s financial position,” the CRFB Budget Team said in a blog post.
The Trump campaign fiercely pushed back on the post.
“CRFB’s so-called experts have been getting it wrong for years,” CRFB spokesperson Karoline Leavitt said in a statement to CNBC.
Levitt said Trump “will continue to vigorously protect Social Security during his second term.” She claimed that Democratic candidate Kamala Harris posed a real threat to the program’s solvency, arguing that her policies would usher in a flood of undocumented immigrants that would “lead to the collapse and collapse of social security.”
only certain non-citizens are eligible to qualify Supplemental Security Income Benefits.
The Social Security Trust Fund will be exhausted by fiscal year 2034, according to the Social Security Trust Fund Congressional Budget Office. The fiscal year begins in October.
Projections from Social Security trustees show the program’s consolidated funds may only be able to pay out full benefits until 2035.
Trump and Democratic nominee Vice President Kamala Harris have both vowed to “protect” Social Security and Medicare, the government-run health insurance program, while opposing any cuts.
At the same time, Trump has vowed to implement more and more tax cuts targeting key groups in the United States.
He proposes eliminating taxes on Social Security benefits for seniors, ending taxes on tips and overtime wages for service workers, further lowering the corporate tax rate, and imposing comprehensive tariffs that tax imported goods.
CRFB said in a post on Monday that the tax cuts, combined with Trump’s promise of mass evictions as soon as he takes office, “will expand Social Security’s cash deficit.”
Specifically, the panel found that his agenda would:
- Increase the 10-year Social Security shortfall by $2.3 trillion by fiscal year 2035;
- Advance the bankruptcy timeline from fiscal year 2034 to fiscal year 2031;
- Lead to 33% across-the-board benefit cuts in 2035 (higher than the 23% cuts currently projected by the Congressional Budget Office);
- Increase the annual shortfall by approximately 50% by fiscal year 2035; and
- Mandates a reduction in current benefits by about one-third, or an increase in income by about half, to restore Social Security’s solvency for 75 years.
Maria Freese, a senior legislative representative on the National Committee to Preserve Social Security and Medicare, said the findings were not surprising given that Trump’s plan involves tax cuts that would generate significant revenue for the Social Security trust fund.
“If you cut income taxes and payroll taxes, you’re going to have an impact on Social Security,” Freese said.
“Depending on the proposal you’re considering, it could have a huge impact over time, especially if you’re looking at a trust fund exhaustion date that’s within ten years anyway,” she said.
The National Committee to Preserve Social Security and Medicare has endorsed Harris for president.
“I don’t think the Trump campaign intends to undermine Social Security,” said Andrew Biggs, a senior fellow at the American Enterprise Institute and former principal deputy administrator of the Social Security Administration. “I just don’t believe they are going to do it when they’re proposing various things. Think about this first.”
He said that while some proposals directly affect Social Security, such as ending taxes on benefits or certain incomes, other policies, such as restricting immigration, would also have an impact on the plan.
“This is such a huge program that any policy changes to the economy or tax laws are likely to have some impact on Social Security,” Biggs said. “Again, Social Security is so big that any changes to Social Security are going to affect other things. ”
He said both campaigns could provide more details on how to reform the program as the date for Social Security funding to run out approaches.
About The Author
