The presidential campaign is finally over, and with President-Elect Donald Trump’s triumph, it’s time to look at some of the initiatives that propelled him to victory this time. One of the most popular proposals he made was the abolition of Social Security taxes, which appeared to resonate with the people, according to a new Monmouth University poll. He proposed this isn’t the only tax change; he also wanted to eliminate income taxes on tips and overtime pay. However, they all affect the same organization: the Social Security Administration (SSA).
A Monmouth University poll conducted from December 5 to 10, polling 1,006 respondents aged 18 and over, indicated that 66% of Americans support plans to remove income taxes on Social Security payments, tips, and overtime, while 21% oppose the notion. Similarly, an October ABC News/Ipsos survey found that 85% of respondents supported this proposal, making it the most popular economic policy of the 2024 presidential campaign, with 55% expressing strong approval.
The independent Monmouth University Polling Institute Director, Patrick Murray, claimed, “Republicans are even more enthusiastic about a second Trump term than they were the first time around.” They are particularly looking forward to him carrying out his promised initiatives.” Taxes on social security benefits:
Contrary to popular belief, Social Security benefits are not subject to federal taxes, and few states tax them, so this policy will not affect those who rely solely on them and have no other sources of income. Taxes are based on “combined income,” computed by adding your adjusted gross income, nontaxable interest, and half of your Social Security payments. Even then, various thresholds determine how much of your combined income is taxed.
According to the Social Security Administration:
You will pay tax on your Social Security benefits according to Internal Revenue Service standards if you:
- If you file a federal tax return as an “individual” with a combined income between $25,000 and $34,000, you may be required to pay income tax on 50% of your benefits.
- If you earn more than $34,000, up to 85% of your benefits may be taxed.
- If you file a joint federal tax return with your spouse and have a combined income between $32,000 and $44,000, you may be required to pay income tax on up to 50% of your benefits.
- If you earn more than $44,000, up to 85% of your benefits may be taxed. If you aree married and file a separate tax return, you will most likely pay taxes on your benefits.
When these laws were implemented, only roughly 10% of beneficiaries were supposed to be taxed on their combined income; nevertheless, nearly 50 years later, the thresholds have not been revised for inflation, bringing the number of beneficiaries who must pay taxes closer to 40% of all beneficiaries.
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