SOCIAL SECURITY
Highlights:
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Donald Trump repeatedly stated he would cut entitlements, including Social Security, backtracking on his 2016 campaign promises
- Trump made repeated claims throughout the 2016 presidential election and during his term that he would protect Social Security.
- But on two separate occasions in 2020, Trump stated that entitlement benefits – including Social Security – would be on the chopping block during his second term.
- In 2024, Trump said, “There is a lot you can do in terms of entitlements in terms of cutting.”
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Donald Trump repeatedly proposed cuts to Social Security in every one of his annual budget proposals.
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FY 2021 proposal: Trump sought to make $79 billion in cuts to Social Security disability benefits over 10 years, including unspecified strategies to promote increased workforce involvement by people with disabilities and SSI youth, cutting retroactive disability benefits by half, reducing the maximum benefits available to families with multiple qualifying children, and forbidding Americans from receiving additional benefits alongside disability insurance - including unemployment insurance, worker compensation, or public disability.
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FY 2020 proposal: Trump called for spending $26 billion less on Social Security, including a $10 billion cut to its disability insurance program.
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FY 2019 proposal: Trump sought to cut $72 billion from Social Security disability benefits over 10 years.
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FY 2018 proposal: Trump sought to cut $72 billion from Social Security disability benefits over 10 years.
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Donald Trump’s State Department sought to cut Americans’ retirement benefits in exchange for a small cash payment through a policy proposal known as the “Eagle Plan.”
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Amid the Coronavirus pandemic, Donald Trump sought to defund Social Security through a payroll tax deferral he planned to make permanent if reelected. Eliminating the payroll tax would hurt Social Security by cutting its funding stream.
- In April, Trump’s economic team proposed cuts to payroll taxes if Trump was re-elected.
- The payroll tax cut along with COVID-19 made Social Security’s limited funds more vulnerable.
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Donald Trump previously supported cutting Social Security, but attacked Ron DeSantis over his support for the same proposals that Trump had previously embraced.
- Trump criticized DeSantis for calling Social Security a “Ponzi Scheme,” for supporting raising the retirement age to 70, and backing a proposal to privatize Social Security. Trump had previously taken the same positions.
- Trump’s super PAC, MAGA, Inc., attacked DeSantis over his positions on Social Security.
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Donald Trump proposed to remove the Social Security partial income tax, which would increase the country’s deficit and move up the insolvency date
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Donald Trump’s orbit wanted to cut Social Security in a second term.
Trump Repeatedly Stated He Would Cut Entitlements, Including Social Security, Backtracking On His 2016 Campaign Promises
2016: TRUMP CLAIMED THAT HE WOULD NOT CUT ENTITLEMENT BENEFITS LIKE SOCIAL SECURITY
During His 2016 Presidential Campaign, Trump Said He Would Not Touch Social Security Benefits
VIDEO: Trump: “I’m Not Going To Cut Social Security Like Every Other Republican.” According to remarks by Trump in an interview to the Daily Signal via YouTube, “TRUMP: Nobody is going to mess with this country. And we’re going to become rich again, and we’re going to become great again. And I’m not going to cut social security like every other Republican. And I’m not going to cut Medicare or Medicaid. Every other Republican is going to cut.” [Daily Signal via 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.” According to a tweet from @realDonaldTrump, “‘I am going to save Social Security without any cuts. I know where to get the money from. Nobody else does.’ - my @SRQRepublicans speech” [Twitter - @realDonaldTrump, 5/21/15]
Trump: “I Was The First & Only Potential GOP Candidate To State There Will Be No Cuts To Social Security.” According to a tweet from @realDonaldTrump, “I was the first & only potential GOP candidate to state there will be no cuts to Social Security, Medicare & Medicaid. Huckabee copied me.” [Twitter - @realDonaldTrump, 5/7/15]
As President, Trump Insisted He Would Protect Social Security
Trump Repeatedly 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.” [Mother Jones, 2/4/20]
TRUMP ON ENTITLEMENTS: “OH, WE'LL BE CUTTING”
Trump Told A Town Hall He Planned To Cut Entitlements
VIDEO: Trump On Entitlements: “Oh, We’ll Be Cutting.” According to remarks by Trump at a Fox News Town Hall via YouTube, “MARTHA MCCALLUM: If you don’t cut something in entitlements you’ll never really deal with the debt. TRUMP: Oh, we’ll be cutting. But we’re also going to have growth like you’ve never had before.” [Fox News via YouTube, 3/5/20]
January 2020: Trump Said Entitlements Would Be On His Plate For Cutting “At Some Point”
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: Trump Said Entitlements Would Be On His Plate “At Some Point They Will Be.” According to remarks by Trump in a CNBC interview at the World Economic Forum via YouTube, “REPORTER: Will entitlements ever be on your plate? TRUMP: At some point they will be. We have tremendous growth. We are going to have tremendous growth this next year. It will 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. You know that’s actually the easiest of all things if you look.” [CNBC via YouTube, 1/22/20]
¶ March 2024: Trump Said, “There Is A Lot You Can Do In Terms Of Entitlements In Terms Of Cutting”
March 2024: Trump: “There Is A Lot You Can Do In Terms Of Entitlements In Terms Of Cutting.” According to Reuters, “Asked about Medicare, Social Security and Medicare programs and the nation's spending and deficits, Trump told CNBC: ‘There is a lot you can do in terms of entitlements in terms of cutting and in terms of also the theft and the bad management.’” [Reuters, 3/11/24]
Trump Repeatedly Proposed Cuts To Social Security
FY 2021: TRUMP SOUGHT OVER $79 BILLION IN CUTS TO SOCIAL SECURITY OVER 10 YEARS IN HIS BUDGET
FY 2021: Trump Proposed Cuts To Social Security And Disability Benefits Totaled $79.579 Billion
FY 2021: 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 Proposed A $46.6 Billion Cut From Disability Insurance And Supplemental Security Income Over Ten Years Based On A Vague Proposal To Increase Labor Force Participation
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: The Nearly $50 Billion In Disability Program “Savings” Came From A Vague Proposal To “Test New Approaches To Increase Labor Force Participation”
CBPP: Nearly $50 Billion In Disability Program “Savings” Came From A Vague Proposal To ‘Test New Approaches To Increase Labor Force Participation. According to the 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.” [Center for Budget and Policy Priorities, 2/13/20]
- Trump Budget Estimated Program Would Save $46.581 Billion Over 10 Years. [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
Trump’s Budget Included A $141 Million Cut To Supplemental Security Income Over 10 Years Attributed To More SSI Youth Entering The Workforce
Trump’s 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 Budget Estimated SSI Youth Transition To Work Would Save $141 Million Over 10 Years. [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
Trump’s FY 2021 Budget Slashed Nearly $9.8 Billion Over 10 Years By Cutting Retroactive Disability Benefits In Half
Trump’s FY 2021 Budget Sought To Reduce 12 Month Retroactive Disability Benefits To Six Months, A Potential $7,500 Average Loss In Earned Social Security Benefits. According to the 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.” [Center on Budget and Policy Priorities, 2/13/20]
- Trump Budget Estimated 12 Month To Six Month DI Revision Would Save $9.788 Billion Over 10 Years. [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
Trump’s Budget Proposed Cutting $8.1 Billion Over 10 Years By Reducing The Maximum Benefit To Families With Multiple Children Who Qualified For SSI
Trump’s 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]
70% Of Poor Families Caring For More Than One Child With Disabilities Already Struggle To Meet Basic Needs
The Proposed $8 Billion In Cuts To SSI Over 10 Years Would Have Harmed 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.” [Center on Budget and Policy Priorities, 2/13/20]
- Trump Budget Estimated Cap On Benefits For Families With Multiple Minor SSI Recipients Would Save $8.14 Billion Over 10 Years. [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
FY 2021 Budget Cut $2.2 Billion Over 10 Years By Forbidding Individuals From Receiving Both Unemployment Insurance And Disability Insurance
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 Budget Estimated DI Offset By UI Would Save $2.188 Billion Over 10 Years. [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
FY 2021 Budget Proposed $189 Million Cut To Social Security By Forbidding Individuals From Receiving Both Disability Insurance And Workers Compensation Or Public Disability Benefits
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 Budget Estimated Offset On DI From Those Who Had Received Workers Compensation Or Public Disability Benefits Would Save $189 Million Over 10 Years. [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
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]
- Trump Budget Estimated The “Improve Payment Integrity” Line Item Would Save $12.552 Billion Over 10 Years. [Trump FY 2021 Major Savings and Reforms, Accessed 3/12/20]
FY 2020 BUDGET PROPOSAL: TRUMP CALLED FOR SPENDING $26 BILLION LESS ON SOCIAL SECURITY PROGRAMS, ONCE AGAIN BREAKING HIS PROMISE
FY 2020: Trump Proposed Spending $26 Billion Less On Social Security Programs
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 BUDGET PROPOSAL: TRUMP SOUGHT TO CUT $72 BILLION FROM SOCIAL SECURITY OVER 10 YEARS
FY 2019: Trump Cuts To Social Security Disability Benefits Totaled $72 Billion Over 10 Years
FY 2019: Trump Sought To Cut Social Security Disability Benefits By $72 Billion Over 10 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]
Trump’s FY 19 Budget Proposed Cutting Social Security Disability Insurance (SSDI) Retroactive Benefits In Half
FY 2019: Trump Sought To Cut The Time In Which Beneficiaries Can Receive SSDI Retroactive Benefits. According to the 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.” [Center on Budget and Policy Priorities, 2/21/18]
Trump’s FY 19 Budget Once Again Proposed Cutting Social Security By Testing “New Approaches To Increase Labor Force Participation Of People With Disabilities”
Trump’s FY 2019 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]
FY 2018 BUDGET PROPOSAL: TRUMP CUT $72 BILLION FROM SOCIAL SECURITY OVER 10 YEARS
FY 2018: Trump Cuts To Social Security Disability Benefits Totaled $72 Billion Over 10 Years
FY 2018: Trump Cuts To Social Security Disability Benefits Totaled $72 Billion Over 10 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]
PolitiFact: Trump Pushed Cuts To Social Security In His First Budget. 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.” [PolitiFact, 5/26/17]
The Budget Required SSDI To Test New Approaches To Get Beneficiaries Into The Workforce Which Would Cost More Money To The Federal Government
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 Have 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]
Trump’s State Department Sought To Take Away Americans’ Retirement Benefits In Exchange For A Small Cash Payment
THE STATE DEPARTMENT’S “EAGLE PLAN” SOUGHT TO CUT AMERICANS’ RETIREMENT BENEFITS IN EXCHANGE FOR A $10,000 UPFRONT PAYMENT
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. 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-Needed Help Amid A Crisis Is Unacceptable
Democratic Lawmakers: Asking Individual Americans To Sell Out Their Retirement Security As The Price Of Desperately-Needed 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]
Trump Sought To Defund Social Security Through A Payroll Tax Deferral That He Planned To Make Permanent If Reelected
AUGUST 2020: TRUMP ANNOUNCED A PAYROLL TAX DEFERRAL AND INTENDED TO MAKE CUTS PERMANENT IF HE WON REELECTION
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 Said That If He Won Reelection, He Would “Make Permanent Cuts To The Payroll Tax”
Trump Said If He Won Reelection, He Would “Make Permanent Cuts To The Payroll Tax.” According to the Remarks by Trump in a 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]
¶ April 2024: Trump’s Economic Team Proposed Cutting Payroll Taxes Which Fund Social Security
April 2024: Trump’s Economic Advisers Proposed Cutting The Federal Payroll Tax, Which Funds Social Security And Medicare. According to Reuters, “U.S. Republican presidential candidate Donald Trump has indicated to advisers he is keen on a new middle-class tax cut should he return to the White House, two people familiar with the discussions said, an initiative that could appeal to voters but could also worsen America's yawning budget deficit. Among the ideas that advisers have presented to the former president is a cut to the federal payroll tax, said one of those people, a move that could lower the flow of money into the Social Security and Medicare trust funds and open Trump to criticism from Democrats that he is torpedoing the safety net for elderly Americans.” [Reuters, 4/17/24]
ELIMINATING THE PAYROLL TAX WOULD HURT SOCIAL SECURITY BY CUTTING ITS FUNDING STREAM
Social Security Was Financed Through A Dedicated Payroll Tax
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]
2019: 89% Of Total Old-Age And Survivors Insurance And Disability Insurance Income Came From Payroll Taxes
In 2019, 89% 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]
Social Security Provided Benefits To About 65 Million People
Social Security 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]
The Payroll Tax Cut Along With COVID-19 Made Social Security’s Limited Funds More Vulnerable
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]
Trump’s Payroll Tax Cut, If Made Permanent, Could Have Made The Program’s Funds Run Out Within Three Years
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 the 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]
Trump Previously Supported Cutting Social Security, But Attacked DeSantis Over Support For The Same Proposals
TRUMP CRITICIZED DESANTIS FOR HAVING THE SAME POSITIONS ON SOCIAL SECURITY THAT HE ONCE DID
¶ Trump Attacked DeSantis For Calling Social Security A “Ponzi Scheme,” Despite Doing So Himself
Trump Attacked DeSantis For Calling Social Security A “Ponzi Scheme.” According to CNN, “Former President Donald Trump once backed raising the retirement age to 70 and called for privatizing Social Security which he called a ‘Ponzi scheme’ – two positions he has hammered Florida Gov. Ron DeSantis for supporting as a former member of Congress and congressional candidate.” [CNN, 4/27/23]
Trump Called Social Security A “Ponzi Scheme” And Said He Would Consider Privatizing Social Security. According to CNN, “Trump made the comments in 2000 in a book he authored called ‘The America We Deserve,’ when he was considering a third-party run for president as a member of the Reform Party. […] In his book, Trump lamented big cuts the program would need without changes, and said he would consider privatization. ‘The truth is undeniable, the workers of America have been forced to invest a sixth of our wages into a huge Ponzi scheme,’ Trump wrote. ‘The solution to the Great Social Security Crisis couldn’t be more obvious: Allow every American to dedicate some portion of their payroll taxes to a personal Social Security account that they could own and invest in stocks and bonds.’” [CNN, 4/27/23]
¶ Trump Attacked DeSantis Over His Support For Raising The Retirement Age To 70 Despite Proposing The Same Change
Trump Attacked DeSantis For Supporting Raising The Retirement Age To 70. According to CNN, “Former President Donald Trump once backed raising the retirement age to 70 and called for privatizing Social Security which he called a ‘Ponzi scheme’ – two positions he has hammered Florida Gov. Ron DeSantis for supporting as a former member of Congress and congressional candidate.” [CNN, 4/27/23]
Trump Said The Retirement Age Could Be Raised To 70. According to CNN, “In his book, Trump lamented big cuts the program would need without changes, and said he would consider privatization. […] ‘We can also raise the age for receipt of full Social Security benefits to seventy,’ he wrote.” [CNN, 4/27/23]
¶ Trump Attacked DeSantis Over His Past Support For Privatizing Social Security Despite Saying He Would Consider Privatization
The Trump Campaign Cited DeSantis’ Support For The Ryan Budget And Comments That Supported Privatizing Social Security. According to CNN, “Trump, his campaign and a supporting PAC have repeatedly cited votes from DeSantis in Congress for nonbinding budget resolutions that would have raised the retirement age to 70. The campaign has also cited DeSantis’ praise of Paul Ryan’s budget plans during his 2012 congressional campaign with comments that expressed support for privatizing Social Security and Medicare – but a CNN KFile review found Trump himself also once praised Ryan on Medicare, along with the 2012 presidential nominee Mitt Romney, without praising their specific policy proposal, which called for similar changes to Ryan’s plan.” [CNN, 4/27/23]
Trump Said He Would Consider Privatizing Social Security. According to CNN, “In his book, Trump lamented big cuts the program would need without changes, and said he would consider privatization. […] ‘The solution to the Great Social Security Crisis couldn’t be more obvious: Allow every American to dedicate some portion of their payroll taxes to a personal Social Security account that they could own and invest in stocks and bonds.’” [CNN, 4/27/23]
¶ MAGA, Inc. Ran Three Ads Against DeSantis Over His Support For Cuts To Social Security
¶ March 2023: MAGA, Inc. Launched $1.3 Million Ad Buy Attacking DeSantis On Social Security
MAGA, Inc. Launched A $1.3 Million National Ad Buy Attacking Ron DeSantis Over His Votes To Cut Social Security. According to Politico, “A super PAC aligned with former President Donald Trump is launching early, national attack ads hitting Ron DeSantis over the Florida governor’s past support for cuts to Social Security and Medicare. ‘Think you know Ron DeSantis? Think again,’ a narrator says at the start of the ad, which the super PAC posted on Twitter Thursday afternoon. ‘In Congress, DeSantis voted three separate times to cut Social Security.’ The ad closes: ‘The more you see about DeSantis, the more you see he doesn’t share our values. He’s not ready to be president.’ The ads will run on Fox News Channel and CNN, and will cost MAGA, Inc., the super PAC, nearly $1.3 million for a week’s worth of spots. The ads will begin airing on Friday, according to AdImpact, a company tracking ad buys.” [Politico, 3/30/23]
¶ April 2023: MAGA, Inc. Released Another Ad Attacking DeSantis On Social Security
April 2023: MAGA, Inc. Released Another Ad Attacking DeSantis On Supporting Cuts To Social Security And Medicare. According to the Daily Caller, “A Super PAC tied to former President Donald Trump will release an advertisement Wednesday morning going after Republican Florida Gov. Ron DeSantis for voting to cut social security and Medicare. The Daily Caller first obtained a copy of the ad, titled ‘Hat,’ which shows a man picking between a DeSantis hat or Trump’s signature ‘Make America Great Again’ hat.” [Daily Caller, 4/26/23]
¶ May 2023: MAGA, Inc. Ran Two Ads In New Hampshire Attacking DeSantis On Social Security
MAGA, Inc. Ran Two Ads In New Hampshire That Would Air On WMUR And Blasted DeSantis On Cuts To Social Security And Medicare. According to NH Journal, “On Monday came news that MAGA, Inc., the Super PAC supporting Trump’s 2024 GOP primary bid, made its first broadcast TV buy of the campaign, part of a $1.26 million push in the early states of Iowa and New Hampshire. The two ads, which will air on WMUR, both target DeSantis over ‘voting to cut Social Security or Medicare,’ a reference to then-Congressman DeSantis’ vote for a GOP plan to slow federal spending and reform entitlements.” [NH Journal, 5/1/23]
¶ Trump Proposed A Social Security Partial Tax Plan That Would Increase The Country’s Deficit And Move Up The Insolvency Date
¶ Trump’s Social Security Tax Plan Would Increase The Deficit While Also Moving Up The Insolvency Date
Trump’s Idea To Eliminate The Partial Tax On Social Security Benefits Would Increase The Deficit By At Least $1.6 Trillion And Move Up The Insolvency Dates Of The Social Security And Medicare Trusts Funds By At Least A Year. According to the Committee For A Responsible Federal Budget, “Earlier today, former President Donald Trump suggested eliminating the partial income taxation of Social Security benefits, which currently helps fund the Social Security and Medicare Hospital Insurance (HI) trust funds. Without a replacement source of revenue, we estimate repealing taxation of benefits for seniors would: Increase deficits by $1.6 trillion to $1.8 trillion through 2035 Increase Social Security’s 75-year shortfall by 25 percent – or 0.9 percent of payroll Nearly triple the Medicare HI 75-year shortfall, increasing it by 0.6 percent of payroll Advance the insolvency date of Social Security’s retirement trust fund by over one year Advance the insolvency date of the Medicare HI trust fund by six years.” [Committee For A Responsible Federal Budget, 7/31/24]
¶ Trump’s Orbit Wanted To Go After Social Security
¶ Stephen Moore, an outside economic adviser to Trump, Wanted To Cut The Tax That Funded Social Security And Medicare
Moore Proposed Cutting The Payroll Tax That Funds Social Security And Medicare. According to the Washington Post, “Stephen Moore, an outside economic adviser to Trump, told The Washington Post he and others have also discussed a cut to the payroll tax, which funds Social Security and Medicare, as a main way to give relief to the middle class. Moore said those discussions were preliminary and that Trump had not signed off on the idea.” [Washington Post, 6/27/24]