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While many Americans of retirement age are concerned about possible cuts to their social security benefits and workers fear for the future of the social security system, Republican presidential candidate Donald Trump is promising to abolish social security contributions if he wins the election in November.

Although the idea sounds good at first, experts warn that this move could do more harm than good to the program.

Here are some possible consequences for Social Security if Trump wins the presidency.

More instability in trust funds

Presidential candidates have talked about the future of Social Security and the future financial stability of its trust funds. If Congress does not act, federal officials expect the Social Security trust fund to be empty within the next decade.

Eliminating taxes on Social Security benefits would deplete the trust fund even sooner. In fact, according to the Committee for a Responsible Federal Budget, the trust fund would default a year earlier, in 2032, and the Medicare default date would be pushed back six years, to 2030.

Reduced services

So what does greater trust fund instability mean for the millions of people who rely – or will rely – on Social Security?

Recipients would face cuts in benefits, and much sooner than expected. Estimates of the cuts vary, but Kiplinger reported that benefits would be cut by 17% in the event of a bankruptcy. To maintain current benefits, cuts would have to be made somewhere.

“Dishonest” approach

Tax cuts are generally supported by the majority of voters, but it is important to remember that recipients earning more than $25,000 ($32,000 for married couples) pay federal income tax on up to 85 percent of their Social Security benefits, while lower-income recipients pay no tax on their benefits.

“(Trump) talks about eliminating taxation, which increases benefits, but the benefits that are subject to taxation are greatly reduced,” Nancy Altman, president of Social Security Works, told Kiplinger. “So basically it’s not an honest proposal.”

Uncertain future

For many retirees who live on Social Security and fixed incomes, there may be little financial wiggle room. While Trump’s proposal to eliminate Social Security taxes may benefit some retirees, it could also hurt many of those who support the former president and his past promises of no cuts.

Trump’s proposal would apparently have no impact on Social Security wage and salary withholdings – that is, the 6.2 percent that employees and employers each pay into the system to fund Social Security (plus 1.45 percent for Medicare).

“He would eliminate the Social Security tax without proposing a way to shore up the retirement system through tax increases or other benefit restructuring,” wrote Howard Gleckman, a senior fellow at the Tax Policy Center. “It’s the latest example of how his agenda would inevitably lead to the very cuts to Social Security that he promises to fight.”

As GOBankingRates previously reported, John F. Pace, a CPA with four decades of experience, said that while there are good arguments on both sides, the human impact must be considered.

“Our society should aim to support seniors and the vulnerable after decades of hard work and public service,” Pace said. “If eliminating these taxes can achieve that goal without jeopardizing essential programs, it deserves consideration.”

Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to objectively cover all aspects of the economy and present balanced reporting on politically focused financial topics. For more coverage on this topic, visit GOBankingRates.com.

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