Why Trump wants to cut the payroll tax, "the primary funding mechanism for Social Security"

[Miles Archer]

“This is a Trojan Horse attack on our Social Security system.”

Economists and progressive advocacy groups are warning that President Donald Trump’s proposal to cut or temporarily suspend the payroll tax in an effort to mitigate the economic impact of the coronavirus is “a Trojan Horse attack on our Social Security system” that will do little to help most U.S. households.

Slashing the payroll tax, the primary funding mechanism for Social Security, “is the wrong way to go,” said Dean Baker, senior economist at the Center for Economic and Policy Research (CEPR).
.
“They may well use a temporary tax cut as an opportunity to weaken the program’s finances so that they can then push for cuts or privatization.”

—Dean Baker, Center for Economic and Policy Research

“Trump and the Republicans in Congress cannot be trusted to protect the Social Security trust fund,” Baker said. “They have frequently proposed cuts to the program, and under President Bush, sought to privatize it. They may well use a temporary tax cut as an opportunity to weaken the program’s finances so that they can then push for cuts or privatization.”

https://www.rawstory.com/2020/03/stealth-attack-on-social-security-trump-condemned-for-exploiting-coronavirus-crisis-to-push-payroll-tax-cut/

[Frustratedlady]

1. Thanks for that article. I've been trying to figure out what payroll tax he was referring to, as

that tax wasn't going to do much to help. Screwing up SS makes sense.

Why aren't they working on unemployment support. At least that program is mostly in place and wouldn't take long to get started distributing it. I suppose the business would have to belong to that insurance plan, but the govt. could surely come up with something. If you are without a paycheck, the payroll tax isn't going to help. What's the percentage now...withholding and employer contribution?

The main problem is, I don't have any faith in the Repuke administration to come up with anything helpful. I can see Trump doling out funds to his rich friends/contributors, for the most part, by giving them millions to cover the payroll for their employees. What about the little guy? Besides, Trump has already shown his main concern is the travel income losses for hotels, airlines. etc.

[customerserviceguy]

2. The Obama administration

enacted a 2% payroll tax cut in 2010 as part of a comprehensive tax package. I don't recall him being criticized as trying to undermine the Social Security System. I do recall that money was transferred from the general fund to the Social Security funds, effectively putting that tax cut on the "credit card".

[Captain Zero]

9. It was the only way Obama could get cooperation on a

Stimulus package. It was the poison pill the Republicans put in the stimulus bill.

[Kashkakat v.2.0]

23. WELL SOME OF US CRITICIZED! And for same reason. Of course lots of yall chose to ignore ... nt

[customerserviceguy]

30. I don't recall that

in any case, Social Security did not disappear, and has not been devalued in the eyes of the American people.

[2naSalit]

3. I sincerely hope he gets the virus and does not do well

thereafter. It would be nice if he was gone by Easter.

[Dem2theMax]

12. Easter? I can't wait that long.

Tomorrow.

[2naSalit]

25. Agreed.

But Easter is only weeks away. But then, I am anticipating something happening around the end of next week so maybe..?

[Dem2theMax]

28. I'm fine with waiting until next week.

As long as whatever it is is good for us!

[2naSalit]

29. Absolutely!

[dweller]

31. the Ides of March

are upon us ..

patience,

✌🏼

[2naSalit]

32. Yeeesssss.

[calimary]

4. More here:

https://socialsecurityworks.org/2020/03/10/trumps-plan-to-slash-payroll-contributions-is-an-attack-on-social-security/

[warmfeet]

5. The orange scum, and his ilk, want to take away everything

any Democrat has ever achieved. They want to roll back every accomplishment.

Fuck'em all.

[TNNurse]

6. Who told him what to do?

You know he does not understand much.

[Fla Dem]

7. Scum, they are just scum. That black stuff at the bottom of the swamp.

[maxsolomon]

14. Scum is on top of the Swamp

They're Anaerobic Muck.

[I_UndergroundPanther]

26. Mind if I steal anaerobic muck?

Love it. It's what you get if you drain the swamp.

[maxsolomon]

33. not at all.

didn't think of it as particularly clever, just accurate to the bottom of a swamp!

[iluvtennis]

8. Isn't the payroll tax only 5/6% of your weekly/bi-weekly pay? That's no real money.

Say you make $1000 a week, that would be $50/$60 a week before taxes. How is that going to help a family?

What's needed is to pay workers in full should they need to be off work due to coronavirus. That's what Trump should be funding instead of giving money to corporations, banks, oil companies, etc.

[maddiemom]

11. And your employer matches it.

[bronxiteforever]

10. K&R for all to see. GOP still hates the New Deal.

[aggiesal]

13. They did this to the post office ...

Issa got congress to have the Post Office pay into a pension plan
75 years into the future, so that the Post Office finances would be weakened.
Then they could get rid of the largest union in the country, on the guise
that they couldn't afford the future pension plan and pay their own postal
workers.

Remember that everything the Repugs do is for the benefit
of the GOP (Greedy One Percent)

[dalton99a]

15. Kick

[Jim__]

16. The Democratic House would have to pass this, right?

If so, they won't get it. And if the pukes try to use it as a campaign ploy, the Dems need to bury them for trying to defund Social Security.

[Mme. Defarge]

17. Not to worry, the deficit will be reduced

when a large proportion of the population currently withdrawing from it dies from the flu.

[SunSeeker]

18. Fuck that shit. Cut checks for workers like he did the farmers!

[Bernardo de La Paz]

19. Scam is to not talk to Ds & foist a take-it-or-leave-it deal on the Ds, complete with propaganda. nt

[Kashkakat v.2.0]

20. FFS STOP CALLING IT "payroll" tax!!! Its more precisely called FICA or Social Security tax."Payroll

tax" is a broad general term which includes federal income tax, state income tax, AND!!! FICA, or Social Security Tax.

"Payroll tax" is intentional obfuscation so that people don't realize that essentially its Social Security that is being defunded.

After 40 + years doing payroll trust me - I know a thing or two about "payroll tax" and what it is!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Kashkakat v.2.0]

21. PS Lets call out media who are using this imprecise, misleading terminology - esp those who claim

to be neutral or left leaning

[CarlitosMMT]

22. Profound ignorance prevails

The Obama payroll tax cut was most successful measure of the recovery acts

It did not change one cent of funding for the fictional trust funds as Congress directed the Treasury to make our payments.

Meanwhile, the federal govt deficit is always completely sustainable as the federal govt is the issuer of the currency and tax monopolist.

I hate Trump. I love this idea. It’s incomplete and a lot more other stuff needs to be done. But don’t throw this away.

PS I have a Masters in Economics and my specialty is fiscal/monetary operations. Please do not reply with unhinged Trump-like ignorance on matters you prolly know nothing about.

[lpbk2713]

24. Just remember .. it's a (R) that wants to fuck with SoSec.

Others have tried it and found it to be political suicide.

[napi21]

27. The damn little bit of money that anyone would get, even if they cut SS to .00 isn't going to

help anybody buy food, pay their rent. their mtg., or anything. Even a top earner only pays a couple of bucks to SS out of each paycheck. If said JA really wanted to help, he'd just shut the F up and let the scientists & medical community do what ever can be done about the virus!