Social Security Trust Fund Solvency Is Shortened By New Retiree Tax Deduction

Automatic benefit cuts will occur sooner because of a new $6,000 tax deduction for retirees aged 65 and up. The deduction reduces the taxable income of retirees, which results in many people's taxable income falling to a level where they owe no tax on Social Security benefits. The Social Security Administration relies on this tax revenue to fund benefits and maintain trust fund solvency. Without this revenue, the date the trust fund runs dry is moved up.