Report warns that Trump could defund Social Security
Report warns of Trump proposals that could defund Social Security. Here we tell you all the details about the program.
Posted on 22/10/2024 at 13:09
- A report warns about Trump proposals.
- This is reported by the EFE media.
- Here the details.
A report from the Committee for a Responsible Federal Budget warns that former President Donald Trump’s proposals for the presidential election could jeopardize the funding of the United States’ Social Security program, leaving it without funds in just six years.
The organization, which describes itself as independent and nonprofit, is made up of tax policy experts, including former congressional budget committee chairs.
Social Security faces an imminent crisis due to the aging of the population.
According to the Congressional Budget Office, the system is estimated to be insolvent by fiscal year 2034. However, analysis suggests that Trump’s initiatives could accelerate this process and empty its funds by 2031.
A report warns about some Trump proposals
— Donald J. Trump (@realDonaldTrump) October 21, 2024
The report highlights that, despite promises by Trump and his Democratic opponent, Vice President Kamala Harris, to protect Social Security, neither has presented concrete plans to reverse the insolvency crisis.
The former president’s proposals include the elimination of taxes on Social Security benefits and the end of taxation on tips and overtime.
According to the Committee, these measures would significantly increase system deficits, leading to benefit cuts of up to 33% by 2035.
Trump’s proposal to eliminate the taxes that beneficiaries must pay could result in a cost of almost a trillion dollars over the next decade.
Harris’ proposals contrast with Trump’s
In contrast, Harris’ proposals, while they would also increase debt, could be mitigated by her plan to raise the minimum wage and other fiscal measures. However, the report notes that these changes would not stop insolvency, but would only postpone it by «several weeks or months.»
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With the elections around the corner, the Committee highlights the need for the next president to implement strategies that increase the fund’s income or reduce spending to avoid cuts in benefits in the 2034 horizon.
The situation poses a significant challenge for the candidates, who will have to address the sustainability of Social Security in an increasingly polarized electoral context.
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