The economic situation around the world is going through difficult times. The cost of living, rent, and food are rising. Therefore, economic stimulus, even if small, is of great help. The goal now is to try to cushion the financial effects of the tariffs imposed by the Donald Trump administration. This would be similar to the aid some citizens received during the COVID-19 pandemic.
Donald Trump: “We have so much money coming in that we’re considering a small refund”
The reality is that there’s no confirmation that this will happen. What sparked the wave of comments from citizens was Donald Trump’s statement, in which he said: “We have so much money coming in that we’re considering a small refund. While the most important thing is paying off the debt, we’re considering a refund.” With these words, the US president has left the door open to a possible influx of extra money for taxpayers.
The situation in the United States is worsening, especially for low-income families. This is why significant changes are being made to some benefits for this segment of society. The 2.5 percent cost-of-living adjustment (COLA) will begin, with benefits reaching nearly 68 million Social Security beneficiaries in January 2025. Increased payments to approximately 7.5 million SSI recipients began on December 31, 2024, according to official government data.
Missouri Republican Senator Josh Hawley raised the idea of a new stimulus check for this year
We also recently discussed cuts to SNAP, a supplement for purchasing food. This supplement will be reduced in at least 10 states, where taxpayers will not be able to purchase any food, meaning unhealthy foods will be restricted. This is why Donald Trump’s statements have gained traction, despite the fact that after his remarks, Missouri Republican Senator Josh Hawley raised the idea of a new stimulus check for this year, through the Reimbursement for American Workers Act. In any case, this is also a proposal; it has not yet been debated or approved.
COLA: the maximum amount of earnings subject to Social Security taxes will increase to $176,100
Returning to the cost-of-living adjustment for 2025, the maximum amount of earnings subject to Social Security taxes (the taxable maximum) will increase to $176,100. This impacts several areas. The earnings limit for individuals who reach full retirement age in 2025 increases to $62,160. $1 of this total is deducted from benefits for every $3 earned over $62,160 until the month in which the worker reaches full retirement age.
7.5 million people will lose health coverage due to changes in the law
Tax reforms continue. Trump’s new tax reform recently came to light, which will result in millions of people losing Medicaid. Specifically, over the next decade, 7.5 million people will lose health coverage due to changes in the law.
2.1 million people will lose their coverage under the Affordable Care Act over the next decade
On the other hand, and along these same lines, 2.1 million people will lose their coverage under the Affordable Care Act over the next decade, according to the Congressional Budget Office (CBO). And 400,000 more will lose their coverage as a result of the law, known as “the big, beautiful law,” which was supported by congressional Republicans.
These changes to the law are of concern to citizens. The CBO estimated that the poorest Americans, those earning less than $23,750 a year and paying about $2,300 of that amount in federal taxes, will lose about $1,200 a year due to the changes to Medicaid and reductions in food assistance.
Federal taxes and cash transfers will increase household resources by $3.3 trillion, on net (in 2025 dollars), says the official statement and it goes: “In particular, changes to federal tax provisions, especially extensions of provisions of the 2017 tax act and limitations on eligibility for subsidies for health insurance under the Affordable Care Act, will affect household resources.
