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The idea is that if tariffs are high enough, it would offset the need for federal income taxes.
Here are some of theways retirees currently pay income taxes and how they would be impacted by no taxes.
Roughly 40% of Social Security beneficiaries must payfederal income taxeson their benefits.
If Social Security is your only source of retirement income, you likely wont face a tax bill.
But if you have other income, theres a good chance youll have to pay federal income taxes.
Depending on your income, either 50% or 85% of your benefits are taxable.
However, you might still face state income taxes on benefits depending on where you live.
Should Trump succeed in eliminating federal income taxes, you wont have to pay these taxes in retirement.
This income is taxed at your ordinary rate.
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