Understanding tax reform is not for the faint of heart. Sifting through piles of data and statistics to learn how President Trump’s plan will affect your social security, is most likely mind-boggling. And when you combine all the numbers with stories from liberal media, it becomes truly frightening.
The good news is there is nothing to worry about.
President Trump has made it clear from the beginning, that Social Security is not a form of welfare. The program was created to ensure that individuals who work hard all their lives can retire, with some measure of financial security. It’s a promise to American workers, that he has no intentions of breaking.
As we’ve discussed in the past, social security is primarily funded through payroll taxes. Those taxes prove more beneficial when the economy is strong, and Americans are working. When you understand that, it becomes easier to see why Trump’s tax plan will improve social security.
Why it’s Good
The Tax Foundation did an excellent job of breaking down key components of the president’s proposals. Despite minor tweaks to the plan, made since their initial analysis, the bulk of the information holds true and is very significant.
For example, Trump’s tax reforms are poised to create an enormous amount of economic growth. Individual income taxes will be down for everyone, not just the uber-wealthy as left-wing media reports. In fact, lower income individuals will benefit the most.
Better than that, however, is the rising wages. Corporate tax cuts eliminate obstacles that reduce job growth and stymie wage increases. When you combine more jobs with higher wages, the future of social security becomes more stable.
The almost $1 trillion in additional payroll tax revenue generated by Trump’s plan, is key to that stability.
It also stands to reason, that an improving economy, more jobs, and better wages, would result in higher benefit payments. Social security recipients are receiving the biggest increase in six years. Additional changes will also greatly improve the viability of the program
Yes, there are still miles to go to get seniors the financial security they deserve. Nonetheless, both workers and retirees should feel confident that President Trump’s tax plan is a great start to getting there.