What’s New
A new poll from Monmouth University found there is widespread public support for eliminating income taxes levied on Social Security income, tips and overtime payments, which were some of Donald Trump’s key pledges during the 2024 presidential race.
Why It’s Important
Tens of millions of Americans receive Social Security benefits every month, with some 40 percent of them paying federal income taxes on their entitlements, as per the Social Security Administration (SSA).
Individuals receiving Social Security retirement benefits must pay taxes on a portion or all of their benefits if their total income exceeds certain thresholds. For single filers, those earning between $25,000 and $34,000 are taxed on 50 percent of their benefits, while people with incomes above $34,000 may have 85 percent of their benefits taxed.
Couples with combined incomes between $32,000 and $44,000 are taxed on up to 50 percent of their benefits, and those earning above $44,000 may be taxed on up to 85 percent.
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What to Know
The Monmouth University poll, conducted between December 5 to 10 with a sample of 1,006 adults age 18 and older, found that 66 percent of Americans support Trump’s plans to nix income taxes on Social Security income, tips and overtime. Twenty-one percent of those surveyed said they opposed the idea.
Trump pledged to end all taxes levied on retirement benefits issued by the Social Security Administration (SSA) in July, writing on his social media platform Truth Social: “SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!”
Prior to the election, his pledge was also widely popular. An ABC News/Ipsos poll from October found that Trump’s promise to end taxes on such benefits was the most popular economic proposal of the 2024 presidential campaign, with 55 percent of respondents strongly supporting the idea, and 85 percent indicating support for the proposal overall.
However, without a pathway in place to recoup the revenue loss, the Tax Foundation has estimated the policies would reduce tax revenue by about $1.4 trillion from 2025 to 2034, and would “likely accelerate” the insolvency of the Social Security trust funds, which are projected for depletion in 2034.
However, the Tax Foundation said implementation of the policies would result in all income groups seeing “a slight increase in after-tax incomes, averaging about 0.9 percent.”
What People Are Saying
Patrick Murray, director of the independent Monmouth University Polling Institute: “Republicans are even more enthusiastic about a second Trump term than they were the first time around. They are particularly looking forward to him following through on the plans he promised.”
What’s Next
It remains to be seen if or when the policy will be implemented once Trump takes office in January.
Newsweek has contacted Trump’s team for comment via email outside of regular working hours.
