President-elect Donald Trump is set to become the second US president in history to serve a second term, following Grover Cleveland. As he prepares for his new role, several changes to the social security program are being considered.
In his presidential campaign, Trump proposed two main social security changes: eliminating federal taxes on Social Security benefits for retirees and bolstering the program’s finances by increasing oil and gas drilling. The latter idea, which would tap into the country’s oil and gas reserves, has not been fully explained but could potentially cover less than 4% of the program’s projected shortfall.
Other proposals that could impact social security include reducing taxes on tips and overtime, establishing a department to identify administrative efficiencies, and imposing tariffs that could lead to higher inflation. This, in turn, could result in increased cost-of-living adjustments for recipients.
The likelihood of these changes varies. Operational efficiency improvements and tariff-related Social Security COLAs are more probable. However, mass deportations of unauthorized immigrants could be limited by logistical challenges, while securing funding from oil and gas drilling or eliminating federal taxes on Social Security benefits may require congressional approval and potentially overcome a filibuster.
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Source: https://www.fool.com/retirement/2024/12/08/changes-to-social-security-we-might-see-in-trumps