Shaw: Trump tax giveaway would undermine SS, Medicare

Trump’s proposal to eliminate taxes on Social Security benefits would deny the government of $1.6 trillion over a decade. Worse yet, those revenues are directed to the SS and Medicare trust funds and they would “accelerate the insolvency of the Social Security and Medicare trust funds.”

The taxation of SS benefits began in 1983 under Reagan (up to 50% taxable) adding a tier up to 85% in 1993 under Clinton. Both of those measures kept benefits untaxed for those beneficiaries whose total income is under $25,000 ($32,000 for couples), accounting for roughly half of current beneficiaries.

Trump’s “promise” thus only benefits higher income retirees.  Full disclosure — 85% of my benefits are taxable and I am OK with the current tax policy, given where those monies go. 

Here is the link for taxing SS benefits: https://www.cbpp.org/research/taxing-social-security-benefits-is-sound-policy

Given the need to address our deficits responsibly through both spending and revenue, any blanket tax cuts pandering to a specific age demographic without regard to individual taxpayers’ total income is horribly irresponsible, unless they are clearly offset by corresponding tax law changes that raise the same or greater revenue approved concurrent with such legislation. 

Editor’s note: Do you have an opinion on this issue? We’d like to hear from you. Reader reactions, pro or con, are welcomed at AzOpinions@iniusa.org.