Executive Order Payroll Tax Cut and Social Security (unemployed, income, pay)

[Hollytree]

As I write, Trump is attempting an executive order to create a payroll tax cut. Payroll taxes fund Social Security and Medicare.

Seems to me, we should be greatly alarmed about this!

[Michael Way]

You should have provided a link. This is what you're referring to.

President Trump said Friday he would defer the payroll tax until the end of the year, using an executive order.

The tax would continue to be deferred until the end of 2020, the president said, and would likely be retroactive from July 1.

He said that by the end of 2020 the payroll tax break could be extended.

https://www.wnd.com/2020/08/trump-su...-tax-end-2020/

[Hollytree]

I just found this. This could be very bad if allowed to happen.

"Trump said the employer portion of the payroll tax would be deferred from Aug. 1 through the end of the year, though the move would not directly aid unemployed workers, who do not pay the tax when they are jobless, and faces bipartisan opposition on Capitol Hill.

“If I win, I may extend and terminate,” Trump said, repeating a longtime goal but remaining silent on how he’d fund the Medicare and Social Security benefits that the 7% tax on employee income covers. Employers also pay 7.65% of their payrolls into the funds."

[jdhpa]

Originally Posted by Hollytree

I just found this. This could be very bad if allowed to happen.

"Trump said the employer portion of the payroll tax would be deferred from Aug. 1 through the end of the year, though the move would not directly aid unemployed workers, who do not pay the tax when they are jobless, and faces bipartisan opposition on Capitol Hill.

“If I win, I may extend and terminate,” Trump said, repeating a longtime goal but remaining silent on how he’d fund the Medicare and Social Security benefits that the 7% tax on employee income covers. Employers also pay 7.65% of their payrolls into the funds."

Something similar was done in 2010:

https://www.paycom.com/about-paycom/...cuts-for-2010/

Regardless of what's done this time around, the trust fund will run out in the early 2030's, and the tax rate will need to be raised (and / or benefits reduced) at that time.