SUMMARY
Despite repeated claims throughout the 2016 presidential election and during his term that he would protect Social Security, Trump failed to keep his promise.
On two separate occasions in 2020, Trump stated that entitlement benefits – including Social Security – would be on the chopping block during his second term.
Despite his promises, Trump has proposed cuts to Social Security in every one of his annual budget proposals
Trump State Department also sought to cut Americans’ retirement benefits in exchange for a small cash payment through a policy proposal known as “Eagle Plan.”
Amid the coronavirus pandemic, Trump sought to defund Social Security through a payroll tax deferral he planned to make permanent if reelected
Trump: I’m Not Going To Cut Social Security Like Every Other Republican. According to the Daily Signal, “Donald Trump says if he runs for president he’ll make sure entitlement programs aren’t touched. ‘I’m not going to cut Social Security like every other Republican and I’m not going to cut Medicare or Medicaid,’ Trump told The Daily Signal. ‘Every other Republican is going to cut, and even if they wouldn’t, they don’t know what to do because they don’t know where the money is. I do.’” [Daily Signal, 5/21/15]
VIDEO: ‘I’m Not Going To Cut Social Security Like Every Other Republican.’ [YouTube, 5/21/15]
Trump: I Am Going To Save Social Security Without Any Cuts. I Know Where To Get The Money From. Nobody Else Does. [Twitter, 5/21/15]
Trump: I Was The First & Only Potential GOP Candidate To State There Will Be No Cuts To Social Security. [Twitter, 5/7/15]
Trump Repeatedly Attacked His Democratic Critics And Asserted He Would Not Make Cuts To Social Security In His 2021 Fiscal Budget. According to Newsweek, “In a number of his few tweets mentioning Social Security, Medicare or Medicaid, the president also went after Democrats. ‘We will not be touching your Social Security or Medicare in Fiscal 2021 Budget. Only the Democrats will destroy them by destroying our Country’s greatest ever Economy!’ he tweeted Saturday, after sharing in 2017: ‘Democrats purposely misstated Medicaid under new Senate bill—actually goes up.’” [Newsweek, 2/12/20]
Trump Promised During His State Of The Union He Would “Always Protect Your Medicare And Social Security.”
According to Mother Jones, “During his state of the union address on Tuesday, President Donald Trump promised that he would protect Americans’ health care. ‘We will always protect your Medicare and your Social Security,’ he said. But that’s not what he said two weeks ago. During a January interview at the World Economic Forum in Davos, Switzerland, CNBC’s Joe Kernen asked if cuts to entitlements, a euphemism for programs like Medicare and Social Security, would ever be on his agenda. ‘At some point they will be,’ Trump answered. ‘It’ll be toward the end of the year. The growth is going to be incredible. And at the right time, we will take a look at that.’” [Mother Jones, 2/4/20]
March 5, 2020: At Fox News Townhall, Trump Stated That ‘Oh, We’ll Be Cutting’ Entitlements. According to the Week, “And so at a Fox News town hall in Scranton, Pennsylvania, on Thursday, Martha McCallum argued that ‘if you don't cut something in entitlements, you'll never really deal with the debt.’ ‘Oh, we'll be cutting,’ Trump said, but he also promised that, presumably in a second term, the U.S. will see ‘growth like you never had before.’” [The Week, 3/6/20]
VIDEO: Trump On Entitlements: ‘Oh, We’ll Be Cutting.’ [Twitter, 3/5/20]
January 22, 2020: Trump Stated That ‘At Some Point’ Entitlements Cuts Would Be On The Table. According to CNN, “President Donald Trump signaled this week that he's open to cutting federal entitlements to reduce the federal deficit, despite previously campaigning on protecting Medicare and Social Security. Asked by CNBC at the World Economic Forum in Davos, Switzerland, whether entitlements would ever be on his plate, Trump responded, ‘At some point they will be.’ ‘We have tremendous growth. We're going to have tremendous growth. This next year I -- it'll be toward the end of the year. The growth is going to be incredible. And at the right time, we will take a look at that,’ he added.” [CNN, 1/23/20]
VIDEO: During A CNBC Interview At Davos, Trump Stated That Entitlement Cuts Would Be On The Table ‘At Some Point.’ [Twitter, 1/22/20]
PolitiFact: Trump’s Promise To Make No Cuts To Social Security Was Stalled Because His Annual Budgets Proposed Cutting Social Security. [PolitiFact, 2/14/18]
February 8, 2020: Trump Tweeted That He Would ‘Not Be Touching Your Social Security Or Medicare In Fiscal 2021 Budget. [Twitter, 2/8/20]
Trump Proposed Cuts To Social Security And Disability Benefits Totaled $79.579 Billion [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
Trump FY 2021 Budget Accounted For Savings From Panel That Would Be Tasked With Producing Recommendations To Decrease DI And SSI Outlays By 5% By 2032. According to Donald Trump’s FY 2021 Budget Proposal Major Savings and Reforms, “Test New Approaches to Increase Labor Force Participation—This Budget promotes greater LFP of people with disabilities by expanding demonstration authority that allows the Administration to test new program rules and requires mandatory participation by program applicants and beneficiaries. This proposal calls on the Congress to establish an expert panel that will identify specific changes to program rules that increase LFP and reduce participation on disability programs based on the results of successful demonstrations and other evidence. This panel would be responsible for making recommendations to reduce participation levels that would be directly tied to reaching a five percent reduction in Disability Insurance (DI) and Supplemental Security Income (SSI) projected outlays by 2032.”[Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
CBPP: Nearly $50 Billion In Disability Program “Savings” Came From A Vague Proposal To ‘Test New Approaches To Increase Labor Force Participation. According to Center for Budget and Policy Priorities, “Two-thirds of its nearly $50 billion in disability program savings comes from a vague proposal to ‘test new approaches to increase labor force participation.” The proposal assumes that after five years of experimenting, the Social Security Administration (SSA) will find large savings. SSA, however, has launched many demonstration projects over the years to test new ways to encourage beneficiaries to return to work, and they have consistently shown limited results or proved not cost-effective. Given disability beneficiaries’ severe impairments and high death rates, this proposal is very unlikely to fuel dramatic increases in work and, in turn, large savings for Social Security. Enabling people with disabilities to work to their full potential would likely cost, not save, money. For example, it would mean more — not dramatically less — Medicaid spending for things like the long-term services and supports that many people with disabilities need to work. Slashing vital supports makes it harder for people with severe illnesses and injuries to get back on their feet.” [CBPP, 2/13/20]
Trump FY 2021 Budget “Improve SSI Youth Transition To Work” Line Item Sought To “To Promote Greater Self-Sufficiency For Transition-Age Youth” By More Closely Tracking Medical Progress And By Increasing Incentives For SSI Youth Recipients To Work. According to Donald Trump’s FY 2021 Budget Proposal Major Savings and Reforms, “Improve SSI youth transition to work—To promote greater self-sufficiency for transition-age youth, the Budget would implement several SSI reforms. First, the Budget would better identify medical improvement at the earliest point to increase oversight and signal the importance of SSI youth investing in their education and development by instituting initial disability reviews at age six and 12. Second, the Budget would improve SSI youth work incentives by disregarding all earned income and eliminating income reporting requirements through age 20, providing a higher disregard of earnings with a gradual phase-down for SSI recipients between ages 21 and 25, and eliminating school enrollment reporting requirements. In addition, the Budget would improve access to vocational rehabilitation services for SSI transition-age youth by allowing the Social Security Administration (SSA) to make referrals to these services.” [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
Trump FY 2021 Budget Sought To Reduce 12 Month Retroactive Disability Benefits To 6 Months, A Potential $7,500 Average Loss In Earned Social Security Benefits. According to Center on Budget and Policy Priorities, “The President has repeatedly promised not to cut Social Security, but his budget cuts SSDI benefits, including by cutting in half the retroactive benefits that disabled workers may receive. Under current law, for example, a worker who’s hurt in a car crash and applies for benefits after struggling to return to work can receive up to 12 months of retroactive benefits, but the Trump proposal would cut them to no more than six — a potential $7,500 average loss in critical, earned Social Security benefits that can help prevent bankruptcy or homelessness.” [CBPP, 2/13/20]
Trump FY 2021 Budget: Proposed Reducing The Maximum Benefit To Families With Multiple Children Who Qualified For SSI. According to Donald Trump’s FY 2021 Budget Proposal Major Savings and Reforms, “Create a sliding scale for multi-recipient SSI families—Currently, multi-recipient SSI families are eligible to receive an equal full benefit amount for each SSI child recipient. However, economies of scale in some types of consumption such as housing reduce per capita living expenses so that two children generally do not need twice the income as one child. Federal poverty guidelines and other means-tested benefits take into account these efficiencies. The Budget proposes to create a sliding scale family maximum for SSI disability benefits that considers the number of additional family recipients, keeping the maximum benefit for one recipient the same, but reducing the maximum amount for all eligible children and parents in the same family for each additional recipient.” [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
The Proposed $8 Billion In Cuts To SSI Over Ten Years Would Harm The Families Caring For More Than One Child With Disabilities. According to the Center on Budget and Policy Priorities, “SSI protects the most vulnerable people with disabilities, including children. Most SSI recipients qualify based on a severe disability; 1.1 million children receive SSI for conditions such as Down syndrome, cerebral palsy, autism, intellectual disability, and blindness. Echoing a plan from House Republicans, the budget would cut $8 billion from SSI over ten years by reducing benefits for families in which more than one member qualifies for SSI — hurting some of the most vulnerable families, for example when children share a genetic disorder. Some 70 percent of poor families caring for more than one child with disabilities already struggle to meet basic needs, and these cuts would make their lives even harder.” [CBPP, 2/13/20]
Trump FY 2021 Budget Proposed To Eliminate Ability Of Individuals To Receive Both Unemployment Insurance And Disability Insurance By Offsetting Disability Insurance. According to Donald Trump’s FY 2021 Budget Proposal Major Savings and Reforms, “Offset overlapping unemployment and disability payments—The Budget proposes to close a loophole that allows individuals to receive unemployment insurance (UI) and DI for the same period of joblessness. UI is intended to compensate individuals for short-term bouts of unemployment while they look to return to work while DI is intended to compensate individuals who cannot return to work on a long-term basis due to a disability. The proposal would offset the DI benefit to account for concurrent receipt of UI benefits.” [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
Trump’s FY21 Budget Proposed Forbidding Individuals From Receiving Both Disability Insurance And Workers Compensation Or Public Disability Benefits. According to Donald Trump’s FY 2021 Budget Proposal, “According to Donald Trump’s FY 2021 Budget Proposal Major Savings and Reforms, “Eliminate Workers’ Compensation (WC) and Temporary Disability Reverse Offset—In most States, if an individual concurrently receives WC or Public Disability Benefits (PDB) and DI, SSA may offset his or her DI benefits. Currently, some States instead have “reverse offset,” whereby the WC or PDB is reduced due to the receipt of DI benefits. This proposal would eliminate reverse offsets in these States, allowing SSA to consistently offset DI benefits because of WC or PDB receipt (when needed) regardless of the State in which the WC is being paid, and require all States to provide SSA with State WC and PDB information.” [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
Trump’s FY 2021 Budget Accounted For Approximately $12.6 Billion Savings From Reductions In Improper Payments. According to Donald Trump’s FY 2021 Budget Proposal Major Savings and Reforms, “In addition, the Budget includes legislative proposals that would avert approximately $12.6 billion in improper payments in Social Security over 10 years. Detailed information on each proposal, as well as administrative actions to reduce improper payments that result in $11 billion in outlay savings over 10 years, is available in the Payment Integrity chapter in the Analytical Perspectives volume.” [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
FY 2020: Trump’s Proposed Cuts To Social Security Totaled $26 Billion. According to the New York Times, “His last budget proposal called for a total of $1.9 trillion in cost savings from mandatory safety-net programs, like Medicaid and Medicare. It also called for spending $26 billion less on Social Security programs, the federal retirement program, including a $10 billion cut to the Social Security Disability Insurance program, which provides benefits to disabled workers.” [New York Times, 1/22/20]
FY 2019: Trump Sought To Cut Social Security Disability Benefits By $72 Billion Over Ten Years. According to Think Progress, “The full budget document proposal lists “Reform disability programs” in line for a $72 billion decrease over the 10-year budget window. This includes explicit cuts to Supplemental Security Income programs and Social Security Disability Insurance programs, both managed by the Social Security Administration. SSDI recipients are people who have become disabled and who have paid taxes into the Social Security Trust Fund, while SSI is needs-based — both programs have a lengthy waiting period before anyone receives benefits. The cuts target retroactive SSDI benefits, multi-recipient SSI families, overlapping unemployment and disability payments, and other administration programs. Last year, when an almost identical proposed cut in 2017’s budget document appeared, a source with knowledge of the budget told ThinkProgress that the cuts were of such a magnitude that it would be like making the program into a block grant.” [Think Progress, 2/12/18]
FY 2019: Trump Sought To Cut The Time In Which Beneficiaries Can Receive SSDI Retroactive Benefits. According to Center of Budget and Policy Priorities, “The budget breaks the President’s promise by cutting Social Security benefits […] It would halve retroactive benefits that disabled workers may receive — hurting, for example, a worker who’s hurt in a car crash and applies for benefits after struggling to return to work. Under current law, she can receive up to 12 months of retroactive benefits, but the Trump proposal would cut them to no more than six. A beneficiary who would have qualified for 12 months of retroactive benefits — a critical lifeline that can prevent bankruptcy or homelessness — could lose about $7,000 in earned Social Security benefits.” [CBPP, 2/21/18]
Trump’s FY 19 Budget Also Proposed Cutting Social Security By Testing “ New Approaches To Increase Labor Force Participation Of People With Disabilities. According to PolitiFact, “Under the heading ‘reform disability programs,’ the budget blueprint counts $72 billion in spending reductions over 10 years. These would be from two similarly named but distinct programs run by the Social Security Administration -- Social Security Disability Insurance (or SSDI) and Supplemental Security Income (or SSI). SSDI benefits people with physical and mental conditions that are severe enough to permanently keep them from working. It is funded by Social Security payroll taxes. Meanwhile, SSI payments are limited to low-income Americans -- senior citizens, or adults or children who are disabled or blind. The payments are funded through general revenue from the treasury. ‘The largest cut would come from an unspecified proposal to test new approaches to increase labor force participation of people with disabilities,’ said Benjamin W. Veghte, the vice president for policy at the National Academy of Social Insurance.” [PolitiFact, 2/14/18]
PolitiFact: As The FY 2019 Budget And Move To Cut The Social Security Reflect Trump’s Priorities, We Continue To Rate His Promise Not To Cut The Entitlement As “Stalled.” According to PolitiFact, “As we noted last year when we looked at this promise, White House budget director Mick Mulvaney has argued that putting forth this proposal doesn't mean that Trump would be breaking his promise, because the budget proposal doesn't cut from the Social Security retirement program. But even beyond the fact that SSDI and SSI are administered by the Social Security Administration, they also serve a large population. Through December 2017, there were 10.4 million SSDI recipients and 8.2 million SSI recipients. That's smaller than the 51.5 million Americans who receive old-age and survivor benefits, but it's a significant group. It's important to note that the president's budget is a non-binding proposal, and this policy idea may well fall by the wayside this year, as it did last year. Even so, the budget document reflects Trump's priorities and policy positions. Since he's reviving last year's proposal, we will continue to rate the promise Stalled.” [PolitiFact, 2/14/18]
Trump Cuts To Social Security Disability Benefits Totaled $72 Billion Over Ten Years. According to Vox, “The budget would also cut $72.5 billion over 10 years to programs for disabled people, including Social Security Disability Insurance (violating Trump’s promise to not cut Social Security benefits) and Supplemental Security Income, which provides support for desperately poor disabled and elderly people without enough earnings to qualify for poverty-level Social Security benefits.” [Vox, 5/22/17]
On the campaign trail, President Donald Trump said he was going to break the typical Republican mold by not pushing cuts to Social Security. But his first annual White House budget does call for some cuts, to the tune of about $72 billion over 10 years. White House budget director Mick Mulvaney told reporters that this doesn't mean Trump broke his promise. His reasoning: The budget doesn't cut from the Social Security retirement program. The cuts are all concentrated in the Social Security disability insurance program, which the White House wants to reform in order to reduce fraud and close loopholes.
Trump’s FY 2018 Budget Included A Provision Requiring SSDI To Test New Approaches To Get Beneficiaries Into The Workforce. According to Vox, “The biggest disability cut is vaguely labeled, “Test new approaches to increase labor force participation,” implying that the budget will require that SSDI test a number of new approaches to get beneficiaries back into the workforce. It budgets $100 million a year in the first five years for testing, but then assumes that the approaches they choose will save more than $49 billion in the final five.” [Vox, 5/22/17]
Most Measures Proposed To Increase Work Among Disabled Americans Would Cost More Money To The Federal Government. According to Vox, “We don’t know what exact measures will be introduced to try to promote work. But many ideas that would increase work among disabled Americans — like increased access to long-term supports and services, subsidized jobs, more funding for vocational rehab programs, and a partial disability benefit available for those who can work part time — would cost more money to the federal government, not less.” [Vox, 5/22/17]
PolitiFact: The FY 2018 Budget Reflects Trump’s Priorities And Because It Deviates From His Pledge Not To Cut Social Security, Trump’s Promise Is “Stalled.” According to PolitiFact, “On the campaign trail, President Donald Trump said he was going to break the typical Republican mold by not pushing cuts to Social Security. But his first annual White House budget does call for some cuts, to the tune of about $72 billion over 10 years. White House budget director Mick Mulvaney told reporters that this doesn't mean Trump broke his promise. His reasoning: The budget doesn't cut from the Social Security retirement program. The cuts are all concentrated in the Social Security disability insurance program, which the White House wants to reform in order to reduce fraud and close loopholes […] Even so, the budget reflects Trump's priorities and policy positions. Because the budget deviates from his pledge not to cut Social Security, we rate the promise Stalled.” [PolitiFact, 2/14/18]
The State Department’s “Eagle Plan” Which Called For Giving Americans $10,000 Upfront In Exchange For Cutting Their Federal Retirement Benefits Was Under Scrutiny From Democratic Congressmen. According to the Washington Post, “The Democratic chairmen of two House panels are scrutinizing a State Department plan to overhaul Social Security that they say unfairly takes away Americans’ entitlement benefits in exchange for a quick cash payment. The policy proposal, known as the “Eagle Plan,” is one of the options that have circulated in the Trump administration to address concerns about the ballooning national debt due to massive federal spending to combat the economic downturn caused by the coronavirus outbreak […] The proposal, first reported by The Washington Post, calls for giving Americans $10,000 upfront in exchange for curbing their federal retirement benefits, such as Social Security.” [Washington Post, 5/14/20]
The Eagle Plan Was Unusual Because It Originated From The State Department, Written By A Chief Strategy Officer To Undersecretary Keith Krach, A Jared Kushner Ally. According to the Washington Post, “The Eagle Plan is unusual in that it originated from the State Department, an agency responsible for creating and implementing foreign policy, not domestic policy. A copy of the plan obtained by The Post says it was written by Paul Touw, chief strategy officer to Krach. Krach is close to Jared Kushner, Trump’s son-in-law and a senior adviser. Kushner and Krach traveled together on the presidential delegation to the World Economic Forum in Davos, Switzerland, in January. Kushner received the memo and sent it to the White House Council of Economic Advisers for review, according to a person familiar with its handling.” [Washington Post, 5/14/20]
Democratic Lawmakers: Asking Individual Americans To Sell Out Their Retirement Security As The Price Of Desperately Need Help Amid A Crisis Is Unacceptable. According to the Washington Post, “The two lawmakers wrote that during this ‘moment of crisis,’ the United States should be enhancing Social Security, ‘not developing policies to reduce benefits.’ ‘The idea that you would ask individual Americans to sell out their hard-earned retirement security as the price of desperately-needed help during a crisis is unacceptable,’ they said. The letter, a copy of which was obtained by The Washington Post, was sent to undersecretary Keith Krach.” [Washington Post, 5/14/20]
August 8, 2020: Trump Announced That He Planned To Defer Payroll Tax Obligations. According to the Remarks by President Trump in Press Briefing, “First one is on providing a payroll tax holiday to Americans earning less than $100,000 per year. In a few moments, I will sign a directive, instructing the Treasury Department to allow employers to defer payment of the employee portion of certain payroll taxes from September 1st.” [Remarks by President Trump in Press Briefing – White House, 8/8/20]
Trump: If I Win Reelection, I Will Make Permanent Cuts To Payroll Tax. According to the Remarks by President Trump In Press Briefing, “If I’m victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax. So I’m going to make them all permanent.” [Remarks by President Trump in Press Briefing – White House, 8/8/20]
Social Security Was Primarily Financed Through A Dedicated Payroll Tax. According to the Social Security Administration, “Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $137,700 (in 2020), while the self-employed pay 12.4 percent.” [Social Security Administration, Accessed 9/8/20]
The Majority Of Federal Payroll Taxes Went Toward Funding Social Security.
[Peter G. Peterson Foundation, 7/10/20]
In 2019, 89 Percent Of Total Old-Age And Survivors Insurance And Disability Insurance Income Came From Payroll Taxes. According to the Social Security Administration, “In 2019, $944.5 billion (89 percent) of total Old-Age and Survivors Insurance and Disability Insurance income came from payroll taxes. The remainder was provided by interest earnings $80.8 billion (7.6 percent) and revenue from taxation of OASDI benefits $36.5 billion (3.4 percent). The payroll tax rates are set by law, and for OASI and DI, apply to earnings up to a certain amount. This amount, called the earnings base, rises as average wages increase.” [Social Security Administration, Accessed 9/8/20]
Trump’s Push To Eliminate The Payroll Tax Would Jeopardize The Funding Stream For Social Security, Which Provided Benefits To About 65 Million People. According to the New York Times, “When President Trump announced that he was unilaterally deferring payroll taxes to bring economic relief to struggling Americans, he and his aides thought it would allow them to frame him as pro-worker. But the move comes with political risks. Eliminating the payroll tax could jeopardize the funding stream for Social Security, which is one of the government’s most popular programs, providing benefits to about 65 million people.” [New York Times, 8/11/20]
Trump’s Payroll Tax Cut Came As COVID-19 Made Social Security’s Already Limited Funds More Vulnerable, With Estimates Predicting That Funds Would Run Out In 2032 Or 2028. According to CNBC, “The move comes as Covid-19 has made Social Security’s already limited funds more vulnerable. The Social Security Administration’s most recent projections indicate the program’s combined trust funds will run out in 2035, at which time 79% of promised benefits will be payable. But that estimate was put out in April and did not take into account the effects of the pandemic. Other more recent estimates have predicted the funds now will likely run out sooner under current conditions, in 2032 or 2028.” [CNBC, 8/10/20]
CEO Of The National Academy Of Social Insurance: What President Trump Has Been Calling A Social Security ‘Tax Holiday’ Can Easily Turn Into A Permanent Vacation. According to the Washington Post, “Step back and look at the big picture — and listen to Trump say that he’ll eliminate Social Security tax next year should he be reelected — and you realize that if Trump prevails, it would likely mean the end of Social Security as we’ve known it. ‘What President Trump has been calling a Social Security ‘tax holiday’ can easily turn into a permanent vacation,’ says William Arnone, chief executive officer of the National Academy of Social Insurance.” [Washington Post, 8/10/20]
Social Security Works President: Despite Trump’s Claims, His Payroll Tax Cut, If Made Permanent, Could Make The Program’s Funds Run Out As Soon As 2023. According to CNBC, “Trump’s payroll tax cut, if made permanent, would make that happen even quicker, as soon as 2023, said Nancy Altman, president of Social Security Works, an advocacy organization. Meanwhile, the Trump administration is arguing that the payroll tax cut would not affect the program’s funding. ‘There would be an automatic contribution from the general fund to those trust funds,’ Treasury Secretary Steven Mnuchin said in an interview on Sunday. ‘The president in no way wants to harm those trust funds, so they would be reimbursed, just as they’ve always been in the past when we’ve done these types of things.’ But Altman said she does not believe that would work. Social Security currently has reserves of $2.9 trillion. Meanwhile, payroll taxes bring in $1 trillion per year. ‘If he throws it until the end of 2023, then benefits will stop, because there’s not enough money in the accumulated reserve,’ Altman said.” [CNBC, 8/10/20]
Center For American Progress: Under The Assumption That Trump Permanently Eliminated The Payroll Tax For Wages, Social Security’s Combined Trust Fund Would Be Exhausted By 2025. According to Center For American Progress, “Under an alternate assumption of Trump’s policy—permanently eliminating the tax for wages under that threshold, including for workers earning more—the combined trust fund would be exhausted in 2025. With the trust fund exhausted, remaining revenues would only be able to pay for 50 percent of promised benefits, declining over time. For an average earner who retires at the age of 65, a 50 percent benefit cut in 2025 would be a loss of $859 per month, or $10,313 over a year, in today’s dollars.” [Center for American Progress, 8/12/20]