As President Trump circles the globe making deals with the European Union (EU) and Japan for trillions of investment dollars in the U.S., he must do more for the average American family. While they all applaud his huge successes in trade negotiations, many feel left out and do not see any change in their daily financial struggles.
As the midterm elections approach, polling suggests big Trump gains but highlight that he has done little to bring elderly voters into his coalition.
While the president gained in every age group, he did not move up among over 65 voters.
Three key steps could jump start a surge among the elderly for Trump:
Next month, the Social Security Administration is expected to announce a 2.6% cost of living increase in benefits for 2026, one of the smallest in recent history.
With Trump announcing trillions in trade concessions from the EU and Japan, such a tiny increase is bound to draw criticism.
The Social Security Administration projects that about $1.6 trillion in Social Security benefits will be paid to nearly 69 million Americans in 2025, an increase from the previous year due to a 2.5% cost-of-living adjustment (COLA).
This total includes payments to retired workers, survivors, and disabled individuals, with the average monthly benefit for a retired worker estimated to be around $1,976 after the COLA.
A 2.6% raise would only mean about 50 dollars per recipient, a tiny amount.
The President should infuse Social Security with sufficient new funding to bring this year's COLA to 10%, at a cost of about $150 billion.
He could secure the funding from the proceeds of the trillions of promised increased investment from the EU and Japan.
- Cap Delinquent Credit Card Interest at 10%
Credit card companies are charging interest rates on delinquent cards over 20%.
During the campaign, Trump proposed capping these rates at 10%.
At the moment, 7% of the credit cards in the U.S. are delinquent.
With total credit card debt now at $1.2 trillion, this deficit would come to about $80 billion.
To charge interest rates over ten 10% burdens card holders and is already cutting into car sales and other retail costs.
- Update the Capital Gains Tax Exemption Levels from Sales of Private Homes, Taking Into Account Inflation
The cut in capital gains taxes under then-President Bill Clinton had a magical impact on government finances, swelling revenues by increasing the pace of sales even as the rate was cut.
Today, with homes no longer exempt from capital gains taxes if the profits from those sales exceed $250,000 for single filers or $500,000 for joint filers, we face a dearth of homes available and an escalating problem of homelessness.
The profit limitation was passed in 1997 and has not been adjusted for inflation since. People won't sell their homes for fear of losing their profits to capital gains taxes, causing sharp limitations in the stock of homes available.
Since 1997, home prices have increased by a cumulative level of 119%.
We must update the exemption levels to reflect inflation to stimulate to the supply of housing.
Together, these proposals will make a real impact on elderly incomes and spread our nation's rising prosperity to our elderly.
Dick Morris is a former presidential adviser and political strategist. He is a regular contributor to Newsmax TV. Read Dick Morris' Reports — here.
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