Retirement Showdown: Joe Biden and Donald Trump’s Plans Put to the Test
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Presidential Candidates’ Plans for Retirement in America
From former President Donald Trump’s proposals to cut taxes for older Americans to Vice President Kamala Harris’ plans for lowering prescription drug prices, the two candidates have big ideas on issues that could impact retirement in America.
Protecting Social Security
Their campaign platforms both emphasize that they would protect Social Security, the largest source of retirement income for most older people. But there are several key differences in what they would change about the program.
Harris: Protect Social Security and Increase Payroll Taxes for High-Earners
Consistent with the platform she and current President Joe Biden ran on in 2020, Harris is focused on defending the Social Security program against “attacks” from the Republican Party — specifically, any changes that would reduce benefits or increase the retirement age. The platform notes that Trump once called for increasing the retirement age from 67 to 70 (but it’s a position he no longer supports).
To ensure Social Security can continue paying scheduled benefits long into the future, Harris calls for “making millionaires and billionaires pay their fair share in taxes.” Social Security’s trust funds are on track to run out of money in about a decade, and in order to avoid benefit cuts, lawmakers would need to enact policy changes to increase revenues. Raising taxes is one of those potential solutions.
Harris says she won’t raise taxes for anyone earning less than $400,000, but depending on the makeup of the next Congress, Democrats may look to raise payroll taxes for folks above that threshold.
Trump: Eliminate Federal Income Taxes on Social Security Benefits
Trump has proposed eliminating federal income taxes on Social Security benefits, which are currently paid by about 40% of recipients (people who have more than $25,000 of combined income). Ending taxes on benefits could free up money for older Americans struggling to cope with the cost of living, but it would potentially increase the federal deficit by $1.6 to $1.8 trillion by 2035, according to the Committee for a Responsible Federal Budget (CRFB), a nonpartisan nonprofit.
In addition to this proposal, Trump pledges to keep the retirement age at 67 and promises no cuts to Social Security. But a new analysis from the CRFB finds that Trump’s proposals on taxes and immigration could actually increase Social Security deficits, worsening the looming funding shortfall.
Harris: Support Union Pensions
Harris is touting her record on pensions, including a tie-breaking vote in 2021 to pass the Butch Lewis Act, which aimed to improve the solvency of multi-employer pensions for union workers, as part of the American Rescue Plan.
Trump: Cut Taxes and Limit Inflation
The former president’s pitch to older voters centers on his ability to control the rising cost of living. At a recent rally in Reno, Nevada, Trump said older Americans have been “destroyed on fixed incomes with inflation,” blaming government spending. Trump says he has a better record than Biden on inflation. However, economists are skeptical that his policies would result in lower inflation than Harris’s.
Harris: Fight for Lower Drug Costs
Campaign ads supporting Harris frequently feature her record on and plans to lower prescription drug costs.
Trump: Promote Affordable Health Care for Older Adults
The Trump campaign platform recognizes that “health care and prescription drug costs are out of control.” It calls for protecting Medicare and improving older folks’ access to affordable health care.
What About Retirement Accounts?
Policies touching on retirement accounts, including 401(k)s and IRAs (individual retirement accounts), are largely absent from the candidates’ platforms, despite having had more prominence in previous elections.