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What a second Trump term means for Social Security, Medicare and affordable housing
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What a second Trump term means for Social Security, Medicare and affordable housing

By MarketWatch

Congress could have more impact than the president on retirement

Much of what happens on retirement during Donald Trump’s second term as president will depend on what legislation he is able to push through Congress that addresses not only Social Security and health insurance, but also taxes, housing, inheritance rules and the economy in general.

Even if Republicans end up controlling the House of Representatives as well as the Senate, the margins will remain tight. This means that any bill passed will likely be bipartisan to some extent. Retirement legislation is often more likely to be bipartisan than bills on other issues because both sides court older voters.

Read: Older voters came out in droves – but they were just as divided as the rest of the country

Over the past eight years, a gridlocked Congress has been able to act on significant retirement savings reform: the first Trump administration succeeded in passing the Secure 1.0 Act, and the Biden administration succeeded in pass the Secure 2.0 law.

Is there a Secure 3.0 in Trump’s future? Here’s where the priorities lie right now, based on what we know about his campaign and his previous term.

Social security

The next four years will be crucial for Social Security, which is expected to run out of funds to pay benefits in full by 2034, according to the latest estimates from the Social Security and Medicare Board of Trustees. Trump said he would protect Social Security. “I will not cut a cent from Social Security or Medicare. And I will not raise the retirement age by one day,” he said at a rally in Florida in July. His most concrete Social Security proposal during the 2024 campaign proposed eliminating the income tax on Social Security benefits. Budget analysts, like the Committee for a Responsible Federal Budget, predict such a move could deplete the trust fund at least three years early. Trump’s defense of the proposal in interviews included arguing that economic growth during his term would solve funding problems.

Read: Trump’s plan to cut taxes on Social Security benefits could cost recipients more in the long run

Health insurance

Trump has also pledged to protect Medicare, but the details of how he plans to do that are less clear. During the campaign, Trump promised in a statement that he would “prioritize home care benefits by reallocating resources to home care for seniors, rolling back disincentives that lead to staffing shortages caregiver and supporting unpaid family caregivers through tax credits and reduced red tape. ” In that same statement on protecting seniors, Trump pointed out that during his first administration, Medicare Advantage plans expanded. Trump also promised to reduce the cost of prescription drugs for everyone, not just for the elderly.

Read: Washington State Voters May Have Just Saved Our Long-Term Care Future

Affordable housing

While housing costs affect everyone in the United States, affordable housing is a major issue for older adults because they often live on fixed incomes and are less able to keep up with rent increases. Trump’s housing plan, as analyzed by the Bipartisan Policy Center, aims to increase the supply of available housing. Proposals on this front include freeing up federal land for construction, easing regulations, offering tax incentives to first-time home buyers and reducing immigration to free up housing.

The economy as a whole

A big part of Trump’s plan for seniors is to stimulate the economy as a whole — fighting inflation, raising incomes and increasing investment returns. He articulated this promise to seniors in his platform, declaring: “Republicans will tackle inflation, unleash American energy, restore economic growth, and secure our borders to preserve funding for Social Security and health insurance for the next generation and beyond. We will ensure that these programs remain. solvent in the long term by reversing harmful Democratic policies and sparking a new economic boom.

-Market observation

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently of Dow Jones Newswires and the Wall Street Journal.

(END) Dow Jones Newswires

11-09-24 1443ET

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