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Trump’s Proposal for Social Security Payroll Taxes

Is the AARP actively opposing President Trump’s proposal to defer and then forgive Social Security payroll taxes that will destroy the Social Security program? If anything, additional sources of funding are needed to save the Social Security retirement and disability program for future generations.

 

I have not seen any AARP TV ads or other forms of communication opposing President Trump’s proposal on payroll taxes. Social Security recipients should be screaming from their rooftops. Also voicing their concern at the ballot box.

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Super Contributor

Many have forgotten the income tax consequences for us and tax revenue windfall for the government by this payroll tax cut.

With the payroll tax is cut, say your pay check goes up by $100 a month. Till December you will have an additional taxable income of $400. If at 15% tax rate your income tax bill will go up by $60. As there are 130.6 million employees in the country, the gov. will have a tax revenue of around 8 billion for those 4 months. If Trump is reelected and abolishes the payroll tax as promised, government's tax revenue will go up by 24 billion per year. 

Now look at what happens to the social security fund. If Trump abolish payroll taxes, this 4 month tax cut will cost the fund a lose of 52.6 billion ($400 X 130.6 million). How long do you think social security payments can survive?

We need to be smart when voting this November.

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Social Butterfly

Many large and small employers and employees are opting out of this silly scheme.

It is only mandatory for Government employees, and they already have jobs.

 

It is simply too hard for private companies to re-tool their payroll systems in time for this idiocy.

Then, in January, it has to be paid back, with deductions going from 6.2% to 12.4%, with that much less money in workers pockets.

 

Trump said that IF he is re-elected, he will get the payback waved.(how political).

 

He cannot do that without Congress.

 

 

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Honored Social Butterfly

Is the AARP actively opposing President Trump’s proposal to defer and then forgive Social Security payroll taxes that will destroy the Social Security program? If anything, additional sources of funding are needed to save the Social Security retirement and disability program for future generations.

 

Trump spokes people say it's a deferment,  Trump said if he is reelected he will make the tax cuts permanent on people making $ 100,000 a year and less.  That would eliminate 70% of Social Security and Medicare funding.  

 

If that happens Social Security and Medicare won't exist as we know it past 2023.

 

https://www.youtube.com/watch?v=DUORxMhSV3k 

Honored Social Butterfly

I thought this was just going to apply to federal employees making less than a certain income? I was worried because my husband is a Fed. But he’s outside the income cap. I don’t understand the point because they are working and presumably can continue to pay bills, etc. and they have great benefits that largely shield them from unexpected health care costs. And they have generous paid leave. 

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Social Butterfly

It is a confusing and fairly weak executive order.

Seems so far, the deferral is due back next April in some lump sum.

Forgiveness is unclear as to who gets it or at all.

I believe there is an opt out for employees and employers for the program.

 

All in all, a silly political move to put some money in workers paychecks pre election, and let the next administration deal with the debt next year.

 

It was passed by Trump in lieu of Congress not agreeing on a second stimulus package, and Trump saw it as an opportunity to look strong.

 

 

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