Former President Donald Trump posted an opinion on social truth on Wednesday that seniors should be exempted from paying tax on social security. This could have a significant impact on the American economy in the long run.
The Old-Age, Survivors, and Disability Insurance (OASDI) program in the US is known as Social Security. It is overseen by the federal Social Security Administration (SSA). Although retirement benefits are its most well-known feature, it also provide income to disabled workers and survivor benefits.
In 2024, more than 72 million Americans will receive Social Security benefits.
Social Security is a scheme for insurance. Employees contribute to the program, usually by having payroll deducted from their earnings. When self-employed individuals file their federal tax returns, they also pay Social Security taxes.
Up to four credits can be earned by employees annually. Up to $6,920 in credits are awarded for each $1,730 earned in 2024. or a maximum of four obtained credits.
The proceeds are allocated to the Disability Insurance Trust Fund (DI) for disability recipients and the Old-Age and Survivors Insurance Trust Fund (OASI) for pensioners. Benefits to those who are currently eligible are paid out of these two sources. The trust funds hold the money that is not spent.
The two Social Security trust funds’ financial affairs are supervised by a board of trustees. The commissioner of Social Security and the secretaries of the departments of labor, health and human services, and Treasury make up four of the six members. The president appoints and the Senate confirms the appointments of the remaining two members, who are public representatives.
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