Debates about Social Security often feel like a tug-of-war between fear and facts, and a recent piece from Retirely, “Opinion: President Donald Trump’s Social Security Promise Would Cripple the Program”, leans heavily into the fear. It’s an argument worth engaging—claims of a “crippled” system demand our attention. But while the warning is loud, it’s not the full story. There’s a rhythm to this debate—a familiar drumbeat of insolvency and cuts—and Trump’s proposal to eliminate taxes on Social Security benefits doesn’t have to be its death knell. Far from dooming the program, it could be the spark we need for a fairer, stronger system—if we’re bold enough to rethink how it works.
Why Trump’s Social Security Tax Proposal Matters
Social Security isn’t just a program; it’s a lifeline. Gallup’s 23-year survey streak shows 80% to 90% of retirees rely on it to survive. Yet for too many, that monthly check—averaging $1,978.77 in January 2025—gets nickel-and-dimed by an outdated tax. Since 1983, benefits have been taxable above $25,000 for individuals or $32,000 for couples, thresholds frozen in time while inflation marches on. Trump’s Social Security tax proposal aims to end that, giving seniors breathing room. Critics say it’s reckless, but is it really?
The Revenue Myth Behind the Criticism
The Motley Fool warns that scrapping this tax would cost $943.9 billion over a decade, speeding the Old-Age and Survivors Insurance Trust Fund (OASI) depletion from 2033 to sooner. They’re not wrong about the raw numbers. But context matters. In 2023, benefit taxes brought in just 3.8% of Social Security’s $1.351 trillion income—payroll taxes covered 91.3%. Trump’s Social Security tax proposal doesn’t gut the program; it shifts the burden. The real question isn’t “Can we afford this?”—it’s “How do we fund it smarter?”
A Fairer Fix for Social Security Funding
Here’s where the opportunity lies. Lift the payroll tax cap—currently $176,100 in 2025—so high earners contribute year-round, not just through January. This could generate billions, dwarfing the loss from Trump’s Social Security tax proposal. Add a modest tax on investment income, and you’ve got a modern revenue base, not a relic from 1983. Critics fear benefit cuts if OASI runs dry, but clinging to a regressive tax isn’t the answer—reform is. Trump’s plan could force that long-overdue conversation.
Who Benefits from Trump’s Proposal?
Let’s talk winners. For a retiree scraping by, untaxing benefits means keeping more of that $1,978.77 for essentials—groceries, meds, heat. Yes, wealthier seniors might gain too, but the bulk of relief hits those straddling the taxable line with part-time work or small pensions. The Motley Fool calls it a giveaway, but it’s dignity. Trump’s Social Security tax proposal isn’t about popularity—it’s about fairness.
A Catalyst, Not a Crisis
Social Security faces a $23.2 trillion shortfall, aging demographics, and a ticking clock—challenges bigger than any one policy. The Motley Fool sees Trump’s Social Security tax proposal as a threat, but I see a spark. It’s a chance to rethink a system that’s coasted on autopilot too long. Pair it with economic growth (think Trump’s energy and deregulation ideas) and fairer taxes, and we’re not just saving Social Security—we’re strengthening it.
We’ve got the tools and the data. All we need is the courage to act. Trump’s Social Security tax proposal isn’t the end—it’s the start of something better. Let’s make it work for all of us.
A good idea — raising the salary cap. Past today’s $176,000 cap.
All talk. No action.
Congress talks, but does nothing!
yes I agree the criminals in congress need to pay into SS and life the cap to 300,000 A million is common income these days.
Trump’s proposal is to not tax the Social Security payments as income. The current income tax on Social Security goes into the general government fund; not into any Social Security fund. The proposal will not change anything about Social Security funding. It will only reduce income tax on the benefits. The payroll funding tax is completely different from the benefit income tax and totally unrelated. There are a lot of sky-is-falling idiots out there completely lying about this proposal just as they lie about everything they can.
From the SSA website:
Under legislation enacted in 1983, the Social Security Trust Funds receive income based on Federal income taxation of benefits. The funds receive taxes on up to 50 percent of benefits from single taxpayers with incomes over $25,000 and from taxpayers filing jointly with incomes over $32,000.
Legislation enacted in 1993 extended taxation of benefits. The legislation increased the limitation on the amount of benefits subject to taxation from 50 percent to 85 percent for single taxpayers with incomes over $34,000 and for taxpayers filing jointly with incomes over $44,000. All additional tax income resulting from the 1993 legislation is deposited in Medicare’s Hospital Insurance Trust Fund.
likem those trust funds really exist other than on paper. congress has robbed them for years…
I have a much better Idea,, and its known by everyone but kept secret for to many years,,,The Govrn started taking money our of my/our pay checks frm the very beginning,,using that money to wage wars all over the world,, support other countries,, even giving social security checks to those who come into this country ILLIGALLY,,,, even to this very day,, houses cars clothes food school,, every thing they want… My deal is this,,,Just give me 1/2 of my money back each month//ALONG WITH ALL THE INTEREST IT HAS ACCRUED OVER THE YEARS THAT THEY HAVE USED MY MONEY,, very simple,, no big deal,, just good financial sense,,easy to understand,, not hard to do.. banks do that every day,,stock market thrives doing just that…Where are the real financial gurus??
illegals coming into this country illegally and working here pay into SSI but do NOT collect, that is a big misconception. They support our SSI system, check it out .
And these same illegals get SNAP payments for groceries, free Healthcare, free housing, free educations which cost our system lots and steals from Americans disproportionately.
A couple of errors, 1.) No interest is accrued on all that money you paid in, because as most of us know, it was paid out to others as it came in. Now the big one, 2.) Illegal aliens pay into social security, but they can’t collect ANY of it, just as NONE of them vote. And now Trump wants to deport those who are helping to keep it afloat a bit longer. Also- The govt. should pay back all the money it raided from so. sec. in earlier eras.
I agree raise the cap and streamline the outflow…DOGE found millions going to dead people (who also vote) that’s the tip of the iceberg Make the criminal in congress pay SS and life the cap to 300,000 simple fix. STOP PLAYING WITH OUR MONEY!!!!!
I agree streamline the outflow DOGE found millions going to dead people,(who also vote democrap) make the criminals in congress pay into the system and life the cap to 300,000; not much money these days
Instead of sending Americans $5000.00 from the Musk claw-backs. Why not put those funds into the Social Security piggy bank?
Because SS didn’t pay that money in. I DID. And I want it back.
SS should not be taxed. People on SS are not rich … Perhaps most are not taxed already because the Standard Deduction is much higher than in the Past…..
Medicaid has no cap and it is still broke…
The fixes needed for Social Security are so simple it’s criminal that Congress can’t get it done. The ideas floated in this article are spot on, this would fix the system and at the same time increase the income of social security recipients who need it most. One other thing could be done that would help immensely is raise the minimum retirement age from 62-65 gradually just like they did the full retirement age back in 83, yes people it’s been 42 years since ANY adjustments have been made to Social Security.
Another, a lot more simple, way would be to raise the line above 34K, for singles and 44K for joint, to compensate for the increased inflation over 40+ years. It would be a ‘cost of living’ adjustment. We seniors have been double taxed- once on our working GROSS, and again on the money we get from/put into into Social Security. Or- allow seniors to get a full deduction of all medical costs (which are currently not deductible until it goes over 10% of our yearly income)) . Which means, currently, that IF you go over that 10K threshold by only 1 dollar- only that 1 dollar is deductible.
“benefits have been taxable above $25,000 for individuals or $32,000 for couples” – Does it take a genius to see the marriage penalty here? Once again women who work get punished by our tax code.
Bob please look at the tax table rates for single (with no dependents under 16yrs) verses married taxpayers. Single filers pay highest percentage of federal tax. Much higher than MFJ (Married Filing Joint) or HoH (Head of Household) that is single filers with dependent children. And the tax brackets increase fastest for Single filers. Generally MFJ where both receive W2 reported income earn more than average Single filer but the MFJ filers pay smaller percentage of their total income. IRS actually encouraged marriage with the lower tax bracket. Then single mothers started getting “additional child tax credit” if their wages were not high enough to pay any federal tax so any money employer sent to IRS goes back to the single working mother along as kid(s) are </=16yr
Elon will find the waste fraud and abuse in the Social Security System. Let him do the work. Don’t harass. He’s not cutting benefits; he’s just cutting excess do nothing employees who get a pension. SSA workers should not get a government pension; they should get a 401K like the private sector. Only persons who should get a pension are firefighters, police, military, paramedics.
Everyone should investigate the full history of the Social Security System, they will then know the real truth. Most people do not know that along with raising the retirement age and the yearly maximum gross FICA deduction wage that other changes over the years that also have been implemented. One of the changes is the Social Security benefit amount received, it is 24 % less than retirees are entitled to. It states this in small print on the yearly benefit entitlement update notice everyone receives. I would also like to see this corrected along with the federal tax elimination. When President Roosevelt implemented the Economic Security Act it was keeping pace with the times; However the US Government seemed to not like that because they we’re not allowed to borrow (take) funds from the system. To remedy this situation the US Government presented consideration of the Economic Security bill in the Congress, when enacted the name was changed to The Social Security Act and the payroll deduction could then be taxed, from that day forward it was deemed a tax and because it was a tax the US government was then permitted to borrow money from the system. It fact they did take money from the system but never paid it back. This with also the improper utilization of funds (investments etc.) and the surprise of the baby boomers generation retiring have diminished the systems funds.
I am at a loss why those administering the plan were surprised when all the baby boomers started retiring. Supposedly the last year of baby boomers births was 1964. Up until and also after that point the Social Security Administration were well aware of how many births occurred so why wasn’t a plan put in place to offset the the added benefit load that was coming. I haven’t done the added research but I wouldn’t be surprised to find that the US Government has also moved additional funds from the system and never returned a cent.
I know of 4 women who are on Social Security and are retired. Because of the cost of housing all of them still work. They need the income to pay the rent! They work at a hardware store that offers about everything. Two of them suffer from arthritis and are in pain thru out the day. They are required to stand and move around. They are happy to have that job and the extra income, however as I said they have arthritis. The truth is that they would be better off not working. Unfortunately, they did not have the income saved to be able to stay home. The housing costs are very high here in California. I sincerely hope and pray that the money set aside for them remains that way and does not fund another program. If anything there should be an increase.
TAXS , government thief , and this is the Simple FACT
DOG-E HAS NOW PROVEN
THE LARGEST ORGANIZATIONS OF THIEF IN HISTORY
And Still hyphenated Americans chase the government cheese
WTFU
THIS GOVERNMENT IS FAKE PERIOD
THE REPUBLIC OF THE United States
DIED IN 1913 TWO DAYS BEFORE CHRISTMAS
A PREVERBAL FORK STUCK IN THE
EYES OF ONE PEOPLE
As i read the comments FOOLS TRY TO FIX A FAKE GOVERNMENTS
THIEF
AS OF TODAY DOG-E HAS PROVED DEMOCRACY IS IN FOOL CON-TROLL
AND STILL THE MANY THINK THEY CAN FIX THE MOB RULE
WITH OUT KILLING THESE POO-LITCAL BANDITS CHINAFY IS REAL!!!!
AS IF THEY WILL EXCEPT
DEFEAT SAY YOU VOTED FOR A VERY STABLE GENIUS WE QUIT THE
POO-LITCAL SCAM AND WILL TAKE OUR STOLEN TAXS AND MOVE OFF TO
CHINA OR WHERE EVER
1976 TO TODAY I HAVE FOUGHT THIS FEDCOAT GOVERNMENT
ABOUT TAXS
STARTING AT 16 YEARS OLD
TODAY , FEW UNDERSTAND THE BATTLE
YOU CANNOT NEGOTIATE WITH A MOB
AND EVERY DAMN PERSON WHO
THINKS ABOUT TAXS STOLEN
THINK GEE GOLY I JUST CAN FIGHT A RIGED SYSTEM
WTFU
READ YOUR AMERICAN MISSION STATEMENT
THE DECLARATION OF INDEPENDENCE
THIS BATTLE OVER TAXATION WITH OUT REPRESENTATION
HAS NEVER BEEN
WON
I WORKED AND PAID MY DUES TO ELECT A VERY STABLE GENIUS TWICE
TO END THIS EVIL FEDCOAT GOVERNMENT PEACEFOOLY
65 YEARS YOUNG LIVE IN THE LAND OF
FRUITS AN NUT ON THE LEFT COAST ALL MY LIFE
UNCIVIL WAR IS HERE AND STILL THE MANY
SEE AND HEAR
OH THIS MESS CAN BE FIXED PEACEFOOLY
WTFU
BOTH THE BANDITS IMPORTED A VERY RED ARMY
REALLY THINK THAT VERY RED ARMY
IS HERE FOR THE SIGHTS
TO SEE THE LAND OF THE FREE
STOP FUNDING THE
THE GOLDEN BILLIONAIRE CLUB
UNCIVIL WAR IS UPON OUR SOULS
WTFU
A REALLY SET OF CHANGE IS GOING TO WEIGH THE MANY INTO A
VERY EARLY GRAVE
ALL CLOT SHOT UP BY THE MILLIONS
TO WHOM EVER READ MY RANT TO THIS POINT
SEEK THIS BOOK WRITEN IN 1913
FEAR GOD and TAKE YOUR OWN PART
THEODORE Roosevelt
WROTE TO ONE PEOPLE IN 1913
TOLD US THE FACTS
HIS ONE WORD WHO OUR ENEMYS HAVE BUILT
TO RULE ALL OF THE LAND OF THE FREE
READ IT
CHINAFY
1913 THE OLD ROUGH RIDER KNEW THE BANKERS BET ON
CHINA TO RULE THIS LAND
TODAY WTFU
THEY HAVE YOU CHASING COPPER
WHEN YOU SHOULD BE BUYING
LEAD
Well said….it is time to redo this antiquated tax on the elderly. It needs to be scrapped. sadly, I am not holding my breath.
So, what is not in this conversation, and this is a convo I had with Grok. Ai labor is replacing human labor. China already has a dark factory. Ai labor if taxed as labor would provide a substanial windfall in taxes because it works 24/7. This should help to fund SS.
The statement of the maximum monthy SSA benefit is $1978.77 is pure fantasy. As a 73 year old retireee, my monthly benefit check is $1636.13! So, over $300 less. Congress not only has stolen from the SSA funds for decades, they also keep adding shared costs to the program that are deducted from my monthly benefit. I have more and more deductions and copays for Medicare drugs and treatments for me, my wife and my dependent 18 year old son who’s about to graduate from high school. Congress has voted themselves all of these medical benefits and way more, for NO Cost to them. They also serve a VERY short term in Congress, then collect their pay of over $150,000 a year for LIFE! SO, as the COLA keeps rising every year, I get a meeger 2-3% COLA raise and inflation makes my benefit check buy less and less. I am also a reired USAF officer, so I get my monthly reitirement check too. Together my SSA check and USAF ret check come to about $5100 a month. Sounds good, but in upstate NY, the state income taxes, high property taxes, high COLA all mean my family and I are living at the poverty level and barely able to keep our 150 year old house and 23 acre family farm. Simply put, the SSA system is broken and the politicians don’t seem to want to fix it! Hurray for Trump and Musk at least trying to stop the government fraud, waste and theft and offering up ideas to make real positive changes that past presidents and Congress never have!