Taxing Social Security: The Debate That Could Reshape Millions of Lives

A recent poll by Monmouth University shows strong public support for eliminating income taxes on Social Security benefits, tips, and overtime pay—policies Donald Trump highlighted during his 2024 presidential campaign.

For millions of Americans, Social Security is a lifeline, with nearly 40 percent of recipients paying federal taxes on their benefits, according to the Social Security Administration. These taxes can be a significant burden, especially for retirees and families on tight budgets.

Here’s how it works: Single individuals with incomes between $25,000 and $34,000 are taxed on 50 percent of their benefits. For those earning over $34,000, up to 85 percent of their benefits may be taxed. Couples with a combined income of $32,000 to $44,000 face similar taxes on 50 percent of their benefits, and if their income exceeds $44,000, the taxable portion jumps to 85 percent.

The idea of getting rid of these taxes has gained traction. In Monmouth’s poll, conducted between December 5 and 10 with over 1,000 adults across the country, 66 percent of respondents said they support Trump’s proposal to scrap taxes on Social Security income, tips, and overtime pay. Only 21 percent opposed the plan.

This isn’t a new idea from Trump. Back in July, he took to his social media platform, Truth Social, to declare, “Seniors should not pay tax on Social Security!” The promise was a key highlight of his campaign and, according to polls, one of the most popular proposals during the 2024 presidential race. Another survey found that 85 percent of people supported the idea, with 55 percent strongly in favor.

While the plan sounds appealing, there are concerns about its financial impact. The Tax Foundation, a nonpartisan think tank, estimates it would lead to a loss of $1.4 trillion in tax revenue from 2025 to 2034. Without a backup plan to recover this money, the move could speed up the depletion of Social Security’s trust funds, which are already predicted to run out by 2034.

Despite the risks, the Tax Foundation points out that the policy could provide a small boost to take-home pay for all income groups, averaging a 0.9 percent increase.

Patrick Murray, who heads Monmouth’s Polling Institute, says Republican enthusiasm for Trump remains high. “Republicans are even more excited about a second Trump term than they were the first time around. They’re especially eager to see him deliver on these promises.”

This conversation around Social Security taxes comes at a time when many Americans are closely watching how economic policies might affect their daily lives. With Trump’s promises continuing to resonate, the debate over balancing benefits with financial sustainability remains front and center.

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