Social Security, Altman continued, “can only pay benefits if it has sufficient dedicated revenue to pay its costs. That is why it doesn’t contribute even a penny to the deficit.”
If Trump succeeds “in slashing that dedicated revenue so that it is no longer sufficient to fully cover the cost, it will result in an automatic benefit reduction,” Altman said. “This would happen without any Republicans having to vote for the cuts, or Trump having to sign them into law.”
Other Tax Cuts
The standard deduction and the marginal income tax rate for middle-income earners are other potential tax-cut targets Trump has discussed, according to Reuters.
Economists who have Trump’s ear, including Steve Forbes, Arthur Laffer, and his former White House economic adviser Larry Kudlow, are pressing him to consider a flat income tax of 17%, Bloomberg reported Wednesday.
Whoever takes the White House will face a showdown over taxes, as key parts of Trump’s 2017 tax overhaul are set to expire at the end of 2025.
