President Trump fails to fulfill promise to end taxing Social Security benefits

Nearly a quarter century of surveys show that 80% to 90% of retirees rely on Social Security income. President Trump’s tax bill does not include a promised end to taxing Social Security benefits. The bill offers a consolation prize with a deduction for seniors aged 65 and above. Social Security’s retired-worker benefit surpassed $2,000 for the first time. The tax on Social Security benefits was introduced in 1984 and affects up to 85% of income. Trump broke his promise to end this tax, citing financial and political reasons. The bill does, however, increase the standard deduction for seniors for a limited time.

Retirees are disappointed by the broken promise but will benefit from the increased deduction. Despite the removal of the tax, half of all recipients wouldn’t have benefitted. The bill aims to boost the deduction for low- to middle-earning retirees and prevent unnecessary benefits. A strategy to maximize Social Security benefits could provide an additional $23,760 per year. The bill is part of a larger effort to provide support for retirees in the face of ongoing financial challenges.

Read more at Nasdaq: President Donald Trump’s Flagship Tax and Spending Bill Is One, Big, Broken Promise for Social Security Retirees