Exempting Taxes on Social Security to Cost $1.6 Trillion Over 10 Years

The Tax Foundation issued a report estimating the cost of making social security income tax free

Photo by Albina Shehetila on Unsplash

Former President Trump has proposed making social security benefits exempt from taxation. Social security benefits were originally not subject to income taxes, however, the 1983 reforms-imposed taxation on a social security income based on a graduated scale.

At the time, less than 10% or so of the population would be subject to taxation but over time more and more people would become subject to the tax since the brackets were not indexed to inflation.