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Trump tax cuts & Social Security
Laurel Wamsley of NPR examines Donald Trump’s pledges to do away with taxes on tips and Social Security as well as making his 2017 cuts permanent. First, only about 2.5% of all employed workers receive tips, and more than a third of tipped workers earn so little that they already don’t pay federal income tax. Details are scant on exactly how this proposal would work, as in whether this exemption is only for income taxes or whether it would also apply to payroll taxes. Second, for Social Security, about 40% of people who get benefits pay federal income taxes on them. The loss of that revenue though would hurt the overall program’s finance and hasten the upcoming insolvency date. Full piece here.
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