Former President Trump recently called for an end to the tax many seniors pay on their Social Security income through his Truth Social account. Seniors with a combined income (Social Security plus outside job) over $25,000 may have to pay the standard income tax rate on up to $12,500 of their annual Social Security income. If that combined income is over $34,000, they may be required to pay the standard income tax rate of up to 85 percent on up to $34,000. The joint income thresholds are only slightly higher at $32,000 and $44,000.
Eliminating this tax could prove advantageous for Trump among senior voters, as his colleague Matt Boyle pointed out in a recent analysis: Trump’s support from seniors could increase as they may view him as a more appealing candidate than current Vice President Kamala Harris. High interest rates, which are beneficial to retirees with stable housing and retirement income, might also help Trump gain favor with this demographic.
The tax on Social Security has been criticized for being illogical – why would the government send seniors a check only to tax it later? The income thresholds for these taxes have not been adjusted for inflation since they were established in 1984, which means that with today’s higher costs of living and increased median income, more people are paying taxes on their Social Security benefits. Prior to 1984, the Social Security tax was not levied on individuals making above the median income; now, those making less than half of today’s median income are being taxed.
This change in policy seems unfair and could be rectified by removing the taxes on seniors’ Social Security benefits – a proposal that has been suggested before. The idea is not without precedent: prior to 1984, there was no tax on Social Security benefits at all.