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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSocial Security is still in good shape but faces challenges -- from Trump
https://www.latimes.com/business/story/2025-06-20/social-security-is-still-in-good-shape-but-faces-challenges-from-trumpNO PAYWALL: https://archive.ph/kNAIp
. . .
Trump has consistently promised that he wont touch Social Security and Medicare, but actions speak louder than words. Trumps tariffs and mass deportation program will accelerate the depletion of the trust fund, Kathleen Romig of the Center on Budget and Policy priorities observed after the release of the trustees reports this week. The Trump administrations actions are weakening the countrys economic outlook and Social Securitys financial footing.
Immigration benefits the program in several ways. Because benefits paid out today are funded from payroll taxes collected from todays workers, notes CBPPs Kiran Rachamallu, more workers paying into the system benefits the programs finances. In the U.S., he writes, immigrants are more likely to be of working age and have higher rates of labor force participation, compared to U.S.-born individuals.
The Social Security trustees fiscal projections are based on average net immigration of about 1.2 million people per year. Higher immigration will help build the trust fund balances, and immigration lower than that will increase the funding shortfall. All told, the Trump administrations plans to drastically cut immigration and increase deportations would significantly worsen Social Securitys financial outlook.
A less uplifting aspect of immigration involves undocumented workers. To get jobs, they often submit false Social Security numbers to employers so payroll taxes are deducted from their paychecks, but theyre unlikely ever to be able to collect benefits. In 2022, Rachamallu noted, undocumented workers paid about $25.7 billion in Social Security taxes.
Trumps tariffs, meanwhile, could affect Social Security by generating inflation and slowing the economy. Higher inflation means larger annual cost-of-living increases on benefits, raising the programs costs. If they provoke a recession, that would weigh further on Social Securitys fiscal condition.
Trump also has talked about eliminating taxes on Social Security benefits. But since at least half of those tax revenues flow directly into Social Securitys reserves, they would need to be replaced somehow. Trump has never stated where the substitute revenues could be found.
Trump has consistently promised that he wont touch Social Security and Medicare, but actions speak louder than words. Trumps tariffs and mass deportation program will accelerate the depletion of the trust fund, Kathleen Romig of the Center on Budget and Policy priorities observed after the release of the trustees reports this week. The Trump administrations actions are weakening the countrys economic outlook and Social Securitys financial footing.
Immigration benefits the program in several ways. Because benefits paid out today are funded from payroll taxes collected from todays workers, notes CBPPs Kiran Rachamallu, more workers paying into the system benefits the programs finances. In the U.S., he writes, immigrants are more likely to be of working age and have higher rates of labor force participation, compared to U.S.-born individuals.
The Social Security trustees fiscal projections are based on average net immigration of about 1.2 million people per year. Higher immigration will help build the trust fund balances, and immigration lower than that will increase the funding shortfall. All told, the Trump administrations plans to drastically cut immigration and increase deportations would significantly worsen Social Securitys financial outlook.
A less uplifting aspect of immigration involves undocumented workers. To get jobs, they often submit false Social Security numbers to employers so payroll taxes are deducted from their paychecks, but theyre unlikely ever to be able to collect benefits. In 2022, Rachamallu noted, undocumented workers paid about $25.7 billion in Social Security taxes.
Trumps tariffs, meanwhile, could affect Social Security by generating inflation and slowing the economy. Higher inflation means larger annual cost-of-living increases on benefits, raising the programs costs. If they provoke a recession, that would weigh further on Social Securitys fiscal condition.
Trump also has talked about eliminating taxes on Social Security benefits. But since at least half of those tax revenues flow directly into Social Securitys reserves, they would need to be replaced somehow. Trump has never stated where the substitute revenues could be found.
MUCH MORE great information about the state of Social Security at the link: https://archive.ph/kNAIp
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Social Security is still in good shape but faces challenges -- from Trump (Original Post)
CousinIT
Jun 20
OP
Always be wary when repubs start talking about "reforming" Social Security...
Wounded Bear
Jun 20
#2
Buns_of_Fire
(18,600 posts)1. I'm sure he'll let us know his plan in two weeks. nt
Wounded Bear
(62,541 posts)2. Always be wary when repubs start talking about "reforming" Social Security...
it never works out in our favor.
Blue Full Moon
(2,473 posts)3. They want to pocket our money