Trump’s Bold Move: Massive Social Security Benefits Boost Incoming—What It Means for You in 2025

With the formal conclusion of the presidential campaign and the election of President Donald Trump, it is time to examine some of the measures that helped him win this time.

The removal of Social Security taxes was one of his most well-liked plans, and a recent Monmouth University poll indicated that the public found it appealing.

The Social Security Administration (SSA) is the entity that is impacted by all of the tax changes he proposed, including the removal of income taxes on overtime and tips.

In a study of 1,006 persons aged 18 and over, conducted by Monmouth University between December 5 and 10, it was discovered that 66% of Americans are in favor of proposals to do away with income taxes on overtime, tips, and Social Security payments, while 21% are against them.

Similarly, according to an October ABC News/Ipsos survey, 85% of participants supported this idea, making it the most popular economic policy of the 2024 presidential campaign, with 55% strongly endorsing it.

According to the results, Republicans are even more excited about a second Trump term than they were for the first one, said Patrick Murray, head of the independent Monmouth University Polling Institute. They are especially anticipating that he will carry out the plans he committed to.

Social Security benefit taxes

This policy won’t affect people who are solely dependent on Social Security and have no other sources of income, which is a large portion of the American population that receives benefits. This is because, contrary to popular belief, Social Security benefits are not subject to federal taxes, and very few states do either.

The term “combined income,” which is determined by adding your adjusted gross income, nontaxable interest, and ½ of your Social Security payments, is what is subject to taxation. Even so, there are criteria that show how much of your total income is subject to taxes, if any.

As Per SSA

Just 10% of beneficiaries were supposed to pay taxes on their total income when these provisions were first implemented. However, nearly 50 years later, the thresholds have not been adjusted for inflation, bringing the number of beneficiaries who must pay taxes closer to 40% of all beneficiaries.

Beneficiaries and the SSA as a whole would suffer greatly if these rules were put into effect. According to the Tax Foundation, the measures will “likely accelerate” the insolvency of the Social Security trust funds, which are expected to run out in 2034, and cut tax income by around $1.4 trillion between 2025 and 2034.

Indeed, it would guarantee “a slight increase in after-tax incomes, averaging about 0.9 percent” for all income categories.