727-821-9494. stated on August 10, 2020 in a post on social media: “Killing the payroll tax means killing Social Security.”, stated on September 7, 2020 in an Instagram post. Social Security funding will not collapse due to this act alone, said William Hoagland, senior vice president of the Bipartisan Policy Center, a Washington think tank. Social Security is already in trouble — and a payroll-tax cut might only make it worse Published: Aug. 21, 2019 at 8:01 a.m. However, under the legislation that allowed for the payroll tax cut, the federal government's general fund made transfers to the Social Security trust funds to make up the difference -- effectively leaving Social Security whole. That’s not a new problem. Democrats think they will win back the Senate and the White House in November. This is slander, and not true.”, “President Trump is in great danger. A payroll tax cut halts the collection of certain wage-based taxes, typically those collected for Social Security and Medicare. The tax gets imposed on a maximum amount of pay each year, with the 2020 limit coming in at $137,700. It would be very similar to what President Richard Nixon did by spending big in 1971 and 1972, while inflating the currency by completely delinking the dollar from gold in 1972, in order to produce an economic high during his 1972 reelection campaign. Guest pointed out that Biden, who personally negotiated President Barack Obama's payroll tax cut legislation as his vice president, praised such a move repeatedly, including in a 2011 USA Today op-ed that said it was "just plain wrong" that such a cut would threaten Social Security and Medicare. Help defeat California Prop 16, Chris Wallace tests negative for COVID-19 after moderating debate featuring Trump and Biden, 'You’re going to beat it': Trump says not to be afraid of COVID-19 after return from hospital, John McAfee arrested in Spain and awaiting extradition to US for tax evasion, Trump looks to move beyond COVID-19 hospitalization and White House outbreak, Trump exits Walter Reed and heads back to White House after three-day coronavirus treatment, Before pushing structural changes, Democrats should remember they won't hold power forever, 'Very destructive and dangerous': Pelosi says Trump should not politicize his COVID-19 infection, WATCH LIVE: Trump returns to the White House from Walter Reed during COVID-19 treatment. If Social Security stopped receiving that $885 billion, the impact would be immediate. The RET isn't a tax 5 expert takeaways Prime Day Oct-13-14 new Supercenters SUBSCRIBE NOW @themotleyfool #stocks, President Obama reduced the Social Security payroll tax, The S&P 500 Was Down 4% in September. Yet what Trump reportedly is considering would be the economic equivalent of seeing a drug addict coming down from a cocaine high and prescribing more cocaine to “cure” him. With asset levels of about $2.9 trillion, the program could only go for four years before using up its entire savings. The wonderfully weird world of wearing masks and feeling safe, White House has sown confusion on Trump's health, and the media love it, What we can learn from successful people with disabilities, Supreme Court restores witness signature requirement for absentee ballots in win for GOP, White House is not contact tracing Rose Garden event and rejected CDC offer to track down those exposed to Trump: Reports, Against racial quotas? Both of those retirement funds are already running out of money. Workers who benefit will receive a fatter check on payday. stated on September 29, 2020 the first 2020 presidential debate: stated on September 16, 2020 a speech at a Hillsdale College event: stated on September 13, 2020 an op-ed on the CNN website: stated on September 13, 2020 a Facebook post: stated on September 7, 2020 a Labor Day event: stated on September 10, 2020 a speech at a rally in Michigan: stated on September 9, 2020 a White House press briefing: stated on September 1, 2020 a campaign ad: stated on August 31, 2020 a speech in Pittsburgh: stated on August 27, 2020 a Facebook post: stated on August 26, 2020 his speech at the Republican National Convention: stated on October 3, 2020 in a Facebook post: stated on September 29, 2020 in an Instagram post: stated on September 15, 2020 in a TV ad. ”, Coalition to Stop the Proposed Tax Hike Amendment, Approving the constitutional amendment on Illinois' November ballot “would let the politicians immediately implement their plan to increase taxes on small businesses, farmers and large employers.”, Says Donald Trump is not at Walter Reed National Military Medical Center, “he is on AF1.”, “That 5% (wealth tax) starts at $159,000 per family.”, Says Donald Trump boarded Marine One "with a portable oxygen concentrator in his pocket with the nasal cannula going up his back, hidden in his hair and tucked under his mask. The result has been confusion and chaos, with the truth elusive. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. Granted, in some respects the trust funds are accounting gimmicks, because government funds essentially are fungible. A neighborhood benefits from the strength of its residents’ unity: their collective resolve to look out for and help one another, as well as their shared commitment to protecting their homes and each other. “Iran has stockpiled 10 times as much enriched uranium as it had” in 2016. St. Petersburg, FL Obviously, a payroll tax cut all the way to 0% would have a much more dramatic financial impact, especially if it applies both to employees and employers. One proposal Trump has reportedly made involves cutting payroll taxes to 0% for the remainder of the year. With the federal budget already running a high deficit, there's a great deal of debate about whether such a transfer would be fiscally prudent. One post on Facebook said bluntly, "Killing the payroll tax means killing Social Security. Forbes, White House Walks Back ‘Permanent’ Payroll Tax Cut Amid Social Security Concerns, Aug. 9, 2020 Bloomberg, Trump’s Payroll Tax Action Creates Political, Business Risks , Aug. 9, … The number crunchers at Social Security estimated how much longer the trust funds would last under the different proposals. Keep Buying Anyway, 3 Outdated Retirement Rules That Could Cost You, 3 Reasons a Roth IRA Is a Perfect Supplement to Social Security, Could You Live on $18,168 a Year in Retirement? During a news conference Wednesday, he … The rate would go up one-tenth of a percent each year. A typical worker making $40,000 a year would pay $2,480 in Social Security payroll taxes, while high-income employees would top out at the $8,537.40 maximum tax … It would be grossly irresponsible. If a payroll tax cut - or tax deferral - forces us to finally discuss reforming Social Security, that's a win in my book. The longer-term impact on the Social Security system depends on whether the proposal aims to replace lost payroll tax revenue to make the program whole. They would apply the payroll tax to earnings over $400,000. THE FACTS: Trump, in effect, has proposed a dramatic restructuring of how Social Security is financed by not relying on the payroll tax as a dedicated source, but … Members of the Trump administration have given conflicting and apparently misleading accounts of the president’s health since he announced he tested positive for the coronavirus. ​President Donald Trump’s weekend order to give millions of workers a break on payroll taxes caught many people by surprise, and created a range of reactions, criticism and questions. Treasury Secretary Steve Mnuchin told Fox News Sunday that the money would be made up for with dollars from the general fund. But before you decide whether that's a good idea, it's essential to look at the second-order effects. The Congressional Super Committee hasn't even started cutting Social Security, but advocates are already expressing concern on a different front: the payroll tax cut … That led to reductions of more than $100 billion a year in revenue to fund Social Security benefits. By and large, the bills in Congress now rely on option No.1 –– raising taxes to pay for future benefits. "The only effect is to delay the day of reckoning when there is insufficient money left in the trust funds to pay out benefits," he said. How President Trump's idea of a potential payroll tax cut could affect your Social Security. Social Security collected more than $885 billion in payroll tax contributions in 2018, the most recent year for which the Social Security trustees have made information available. This post is misleading. That represented the vast majority of the roughly $1 trillion in revenue that Social Security received, and it was enough to pay almost 90% of all the benefits that Social Security recipients got that year. President Trump has left Walter Reed National Military Medical Center, three days after he was diagnosed with COVID-19. It would apply payroll taxes to income over $250,000 and levy a new 6.2% tax on investment income for couples making over $250,000 a year. Several news organizations reported Monday evening that Trump administration officials are considering cutting those taxes in order to stimulate the economy — yes, the same economy that Trump keeps bragging is already supposedly the strongest in history.