Donald Trump vs Kamala Harris on Social Security, Medicare

Americans are nervous about Social Security and Medicare. A recent survey reveals that just about three-fourths of adults have serious concerns that Social Security will run out of funds during their lifetime. Almost one-fourth say they don’t expect to receive anything from the fund, which has traditionally been a critical component of a healthy retirement strategy.

Worries about Medicare are worse. A 2024 Gallup poll reveals that the same number of individuals — 73 percent — are concerned Medicare advantages won’t be available after they reach eligibility.

Considering those concerns, it just isn’t surprising that the longer term of those programs is a key issue within the upcoming presidential election. Listed below are a few of the ways candidates say they may address the concerns.

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Trump says he’ll stimulate economic growth to assist fund Social Security and Medicare

Former President Donald Trump has expressed a commitment to keeping Social Security and Medicare advantages from being cut despite projections of shortfalls. His campaign’s website says he’ll “fight for and protect Social Security and Medicare with no cuts, including no changes to the retirement age.”

Trump’s plan for keeping Social Security and Medicare healthy is primarily focused on strengthening the economy. The thought behind the approach is that economic growth increases wages, resulting in higher tax revenue for Social Security. The 2024 GOP Platform explains that a Trump victory would give Republicans the chance to “tackle inflation, unleash American Energy, restore Economic Growth, and secure our Borders to preserve Social Security and Medicare funding for the subsequent Generation and beyond.”

Trump says he won’t raise tax rates to extend funding for the programs. In truth, he recently vowed to eliminate taxes on Social Security, saying seniors “shouldn’t pay taxes on Social Security and so they won’t.” Trump has also spoken against raising the eligibility age for advantages, which has been suggested as an answer for continuing programs without reducing advantages.

Regarding Medicare, a Trump presidency could end in increased privatization to make sure advantages can be found. During his term in office, Trump signed an executive order looking for to preserve a Medicare environment during which Americans could select to make use of Medicare funding on private medical insurance, and it is anticipated that Trump would proceed to support that policy during a second term.

Trump’s first presidency also provides some insights on how he might address prescription drug costs, which may significantly impact those counting on Medicare. Trump signed 4 executive orders looking for to lower drug prices, although a few of their provisions were later rescinded.

Kamala Harris could expand advantages and increase taxes on high earners

Vice President Kamala Harris, the Democratic Party’s nominee, has indicated that her approach to addressing issues with entitlement programs will align with what the Biden administration has already proposed. One in all the administration’s key positions has been a commitment to avoid profit cuts. President Biden announced in March, as a part of his budget fact sheet, that he “opposes any proposal to chop advantages.”

Harris’s political background on Social Security suggests she may push for increased advantages. While serving as U.S. senator in 2019, Harris co-sponsored a Social Security reform bill – the Social Security Expansion Act – that may have increased minimum advantages and altered the plan’s cost-of-living adjustment calculation method to raised reflect modern economic demands.

Harris’s plan would likely involve raising taxes to deal with the projected shortfalls of entitlement programs. The Biden administration budget sought to call upon “the highest-income Americans” to assist protect Social Security by paying “their justifiable share” in taxes. The budget also proposed “modestly increasing the Medicare tax rate on incomes above $400,000.”

If Harris’s support of the Social Security Expansion Act is an indicator, a Harris presidency may additionally bring more aggressive payroll tax collection. The present framework caps the taxable amount at roughly $160,000 per 12 months, however the Social Security Expansion Act seeks to extend the cap to $250,000.

A continuation of the Biden administration’s approach to prescription advantages would have Harris seeking to lower out-of-pocket costs as provided for within the Inflation Reduction Act. The law gives Medicare the ability to barter lower prices for high-cost drugs, with the goal of passing the savings on to seniors.

Easy methods to plan for Social Security and Medicare changes

Whatever the election consequence, Americans should keep in mind that Congress — not the President — holds the ability to alter the laws governing entitlement programs. Presidents can influence the event of those laws, which they do primarily through their budgets, but they depend on support from Congress to bring about long-term change. For Harris, that may mean gaining bipartisan support in a Republican-controlled House of Representatives.

For those wondering how they’ll plan for the longer term, there are some outcomes which can be secure to assume no matter who wins the election. First, advantages won’t change for anyone already receiving advantages, which suggests seniors can plan on continuing to receive their current amount. Second, unless a solid alternative appears — and it hasn’t yet – Social Security taxation will probably eventually be increased for higher income earners. Third, even with a tax increase, it’s my opinion that the retirement age will certainly be pushed back in some unspecified time in the future in the longer term.

Overall, nobody should count on Social Security to offer 100% of their retirement income. Whatever the changes that would take shape after the election, Social Security advantages shouldn’t be counted on to offer greater than 50 percent of your retirement funding.