Social Security has been a lifeline for millions of Americans since its creation in 1935. Today, more than 67 million people rely on it, making it one of the most crucial government programs. But as the program faces financial challenges, former President Donald Trump and President Joe Biden have taken drastically different approaches to its future.
Trump’s Plan: Tax Cuts & Privatization
Donald Trump has long supported tax cuts, believing they boost economic growth and indirectly help fund Social Security. One of his key proposals is eliminating taxes on Social Security benefits, allowing retirees to keep more of their money. While this sounds appealing, critics warn it could weaken the program’s financial stability by reducing government revenue.
Trump has also floated the idea of privatizing parts of Social Security, which would allow individuals to invest a portion of their payroll taxes in private accounts. Supporters say this could lead to higher returns, but opponents argue it exposes retirees to market risks, making benefits less reliable.
Biden’s Plan: Expansion & Higher Taxes for the Wealthy
In contrast, President Biden wants to expand Social Security benefits, especially for the oldest recipients and widows. His plan includes setting a minimum benefit at 125% of the federal poverty level for people who have worked for 30 years, as well as increasing survivor benefits by about 20%.
To pay for these changes and ensure Social Security remains solvent, Biden has proposed raising payroll taxes on those earning more than $400,000 a year. His administration argues that this will strengthen the program without cutting benefits.
Legislation & Proposals: What’s Actually Happening?
Since taking office, Biden has backed legislation like the Social Security Fairness Act, which aims to increase payments for some retirees. Meanwhile, during his presidency, Trump’s administration proposed changes that would allow disabled students to earn money without losing benefits. However, other Trump-era proposals sought to cut payments for families with multiple Supplemental Security Income (SSI) recipients.
What This Means for You
The way Trump and Biden approach Social Security could have major implications for current and future retirees. Trump’s plan might put more money in the hands of seniors now but could weaken the system long-term. Biden’s approach looks to secure the program’s future but relies on tax increases that could face political resistance.
As the 2024 election approaches, Social Security will be a hot topic, and voters will have to decide which vision they trust for their retirement security.
