When Donald Trump broached the idea of getting rid of federal income taxes on Social Security payments, critics immediately dumped on the idea, labeling it an election-year gimmick that would, if enacted, further damage a system already in deep financial trouble. Losing that revenue would necessitate raising other taxes to make up for the shortfall; otherwise, the Social Security and Medicare trust funds would go bust even sooner than already projected.
This segment of What’s Ahead lays out why the naysayers have it wrong. Dumping this tax would benefit both working seniors and the economy. Moreover, those doomsday trust-fund scenarios should be taken with a huge grain of salt.
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