Social Security recipients, people who earn tips and many businesses could see lower IRS bills if all of Donald Trump’s tax policy ideas come to fruition. But they could punch a big hole in the federal budget.
Parents
During his first term, Trump doubled the child tax credit from a maximum of $1,000 per child to $2,000 per child as part of his landmark 2017 tax law. That expanded credit is set to expire in 2025. While his running mate, Sen. JD Vance (R-Ohio), endorsed an even larger child tax credit, Trump’s campaign said he would like to extend the $2,000 credit.
Older adults
In remarks made on the campaign trail, Trump said no one should pay taxes on Social Security benefits. Now, about 40 percent of seniors do — mostly because they have other income that boosts their earnings above $25,000 per year for an individual or $32,000 per year for a married couple. Trump’s idea is costly: It would reduce revenue by about $1 trillion over 10 years, according to estimates. And since taxes on Social Security go back into the program’s trust fund, his plan would hasten the depletion of the fund — which is projected to run out of money in about a decade, triggering automatic across-the-board cuts in benefits.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
