Recently, a planned revision of the Social Security tax has alarmed retirees under President Donald Trump, who is currently in his second term in office. Trump made several pledges during his campaign to keep Social Security benefits unaltered. However, his most recent tax plans might inadvertently accomplish that by reducing the amount of money the program needs to stay afloat. Experts warn that if these tax cuts are passed into law, they may hasten the depletion of the Social Security Trust Fund and result in benefit reductions as early as 2032. Read the article entirely to know about the latest news of the Cut In Social Security Benefits From May 2025.
Trump Announces! Cut In Social Security Benefits From May 2025
According to the Congressional Budget Office, the SSA Trust Fund will run out of money by 2035. After that, Social Security would be reliant on incoming tax revenue, meaning it could only make about 77% of the guaranteed payouts. Therefore, no, Social Security won’t disappear right away, but if Congress doesn’t do anything, all claimants’ payments will be automatically cut by 23%. The elimination of federal income taxes on payments, overtime pay, and Social Security payments is part of President Trump’s recent announcement of a Cut In Social Security Benefits From May 2025. While this may appear to be beneficial for workers and retirees, those taxes currently fund the very program that pays benefits.
Social Security Benefits Cut From May 2025 – Overview
| Article | Trump Announces! Cut In Social Security Benefits From May 2025 |
| Department | SSA |
| Year | 2025 |
| SSA Eligibility 2025 | Those with a disability, low income and a dependent |
| Category | Finance |
| Website | www.ssa.gov |
Financial Effects Of Trump’s Tax Cuts On Social Security?
It is helpful to examine the source of Social Security funding to comprehend the danger. Three main revenue streams are used by the program:
- 91% of payroll taxes
- 4% Social Security benefit taxes
- 5% interest on investments made in trust funds
Two of those are directly impacted by Trump’s plan. Currently, benefits are projected to be reduced by 23% in 2035 if nothing is done. But the CRFB warns that such cuts might increase to 33% if Trump’s tax plan is implemented. For retirees whose main source of income is Social Security, that would be a huge blow.
Changes In Social Security By Trump In 2025
The following are some of the Social Security reforms that President Trump has suggested:
- Removing Social Security Income Taxes: Trump’s plan would provide the elderly on fixed incomes with an exemption from income taxes on Social Security benefits. However, because of the decreased funds, this action may hasten future benefit decreases.
- Cutting Down on “Fraud and Waste” in the SSA: According to Trump and Elon Musk, the head of the Department of Government Efficiency, there is a lot of fraud in the system, including payments to those who have passed away.
- Reduced Access to Services and Longer Wait Times: The SSA has announced plans to eliminate hundreds of field offices and remove 7,000 staff, which may result in longer wait times.
Will Social Security cuts be halted by Congress?
Congress has historically intervened when Social Security experienced significant deficits, and it will likely do so once more. However, lawmakers are under additional pressure to act more quickly and forcefully as a result of Trump’s tax plans.
If the financial gap widens, the final solution may be more difficult. It might indicate:
- An increase in payroll taxes
- Raising the age of retirement
- Reducing prospective advantages
Additionally, President Trump is aggressively promoting these tax advantages, so there is less time to take action.
Fact Check of the News: Trump Announces! Cut In Social Security Benefits From May 2025
Result: Untrue
It is untrue to say that President Trump announced reductions in Social Security benefits beginning in May 2025. The administration of Donald Trump has often stated that Medicare, Medicaid, and Social Security benefits will remain intact.
FAQS on Trump Announces! Cut In Social Security Benefits From May 2025
Did Trump declare that he will begin reducing Social Security benefits in May 2025?
This claim is unsupported by any evidence.
Is there a proposal to modify Social Security?
Yes, plans call for lowering “fraud and waste” in the system and doing away with taxes on Social Security income.
Will there be a decline in SSA benefits?
Although no particular changes have been declared for May 2025, potential benefit reduction could happen if trust funds run out.
Soniya Sahota is Finance professional with MBA Finance degree from University Of London, she completed her Master’s in ’15. Now she is working as a senior content editor at D News, Finance, Education & Sports News portal.