Former President Donald Trump's proposed tax breaks, including eliminating federal income taxes on Social Security benefits, could potentially deplete Social Security trust funds earlier than projected. A new analysis from the Committee for a Responsible Federal Budget suggests that Trump's platform may lead to the trust funds running out of money by 2031, resulting in a significant cut in benefits unless Congress intervenes.
Social Security has been facing financial challenges due to the increasing number of beneficiaries and a shrinking workforce contributing to the system. The program's trust funds are currently projected to be depleted by 2034, leading to a 23% benefit cut. However, if Trump's proposals are implemented, benefits could be 33% smaller by 2035.
