Donald Trump has said he will stop taxing Social Security benefits for seniors if he wins a second term in the White House.
The cut is the latest in a series of tax cuts that Democrats say will jeopardize federal benefits and balloon U.S. debt. Others say Congress it is unlikely that the plans will be adopted.
But this latest proposal for Fox and Friends is the most sweeping and expensive yet, costing the government $1.8 trillion over the next decade, according to the Committee for a Responsible Federal Budget.
They argue that the cuts will cause federal benefits to dry up sooner than expected.
“People who rely on Social Security are being killed,” Trump said.
‘One of the things I’m going to do is stop paying taxes to seniors who receive benefits. And I’m going to do that quickly.
‘No tax for seniors receiving an AOW benefit.’
Former President Donald Trump has proposed eliminating taxes on Social Security benefits for seniors if he is re-elected, but the move could increase the deficit by as much as $1.8 trillion and dry up the funds used to pay benefits sooner than expected.
According to the Social Security Administration, about 40 percent of people who receive benefits must pay federal income taxes on their benefits.
Social Security taxes apply to individuals with family incomes over $25,000 and married couples with incomes over $32,000. They pay 50 percent tax on that income.
Singles with incomes of more than $34,000 — $44,000 for couples — pay an additional 35 percent tax on their income.
All that revenue goes to pay for Medicare.
The taxes are used to finance Social Security and Medicare hospital insurance.
Experts fear that eliminating taxes on Social Security could increase the deficit and lead to more bankruptcies for the funds used to pay benefits.
Trump’s proposal to eliminate taxes on Social Security benefits for seniors would increase insolvencies for the funds used to pay benefits, analysis finds
The Committee for a Responsible Federal Budget estimates that eliminating Social Security taxes would cause the trust fund to fail a year earlier than estimated.
The fund is currently projected to fail in 2033, so the plan would move that to 2032. Medicare’s bankruptcy would be pushed back six years to 2030.
At the same time, a proposal to eliminate the Social Security tax would need to be approved by Congress. Lawmakers are divided on the issue.
In recent years, there have been proposals to eliminate the tax on benefits for seniors, but there have also been several suggestions about how to make up for the loss of income.
When asked about the cost of the proposal in a recent interview with Fox Business, Trump dismissed concerns, saying the urgent deadline for addressing Social Security would force Congress to act.
“Well, you know, one of the good things about that is that people are making a deal, you know, but we’re going to take care of Social Security,” the former president said.
DailyMail.com reached out to the Trump campaign to find out how the former president plans to replenish lost revenue and ensure the trust funds don’t dry up.