Will House Republicans cut Social Security and Medicare if they retake?
House Republicans on Wednesday unveiled parts of a policy agenda that indicates the party would push for cuts to Social Security and Medicare if it retakes the majority in November.
Will trump forgive Social Security and Medicare payroll taxes?
Opinions expressed by Forbes Contributors are their own. President Trump said over the weekend, If I’m victorious on November 3rd, I plan to forgive these [payroll taxes for Social Security and Medicare] and make permanent cuts to the payroll tax.
Does Donald Trump want to destroy Social Security?
In the press release, the group’s president Nancy Altman wrote: Donald Trump once promised that he would be ‘the only Republican that doesn’t want to cut Social Security.’ We now know that what he meant is that cutting Social Security doesn’t go far enough for him: He wants to destroy Social Security.
Did Trump vow to ‘terminate’ Social Security and Medicare funding?
The Common Dreams article stated that “President Donald Trump openly vowed to permanently ‘terminate’ the funding mechanism for both Social Security and Medicare if reelected in November … Announcing and then signing a series of legally dubious executive orders …
How much is the payroll tax for 2020?
Currently, employers and employees split the 12.4% payroll tax on the first $137,700 of 2020 earnings and also split the 2.9% Medicare tax on all earnings. The self-employed pay the entire tax. Trump not only wants to suspend these taxes during the pandemic crisis, he says he wants to make permanent cuts to these taxes.
Is Medicare running out of money?
Both the Medicare and Social Security trust funds are running out of money––both face an inability to pay full benefits if their problems aren’t solved by either increasing funding or cutting benefits. That is projected by the Congressional Budget Office to happen for Medicare in 2025 and Social Security in 2031.
Who pays the deficit tax?
First, the only people who pay these taxes are people who still have their jobs and their earnings . With millions unemployed it can be argued that it would make more sense to increase deficit spending by providing help directly to those who don’t have any earnings––the unemployed.
Is Forbes opinion their own?
Opinions expressed by Forbes Contributors are their own.
What did Trump say about the payroll tax?
First, he said he planned to “forgive” the payroll taxes in question, meaning that rather than simply being delayed, the obligation to pay those four months’ worth of Social Security and Medicare taxes would be removed entirely.
What is OASDI in Social Security?
Doing so would remove the overwhelming majority of funding for the two benefits that comprise Social Security: Old-Age and Survivors Insurance (OASI), and Disability Insurance (DI), known collectively as OASDI. According to the federal Social Security Administration, fully 89% of OASDI came from payroll taxes in 2019.
How much do you pay for payroll taxes?
For Social Security, an employer and employee each pay the equivalent of 6.2% of the employee’s wages (12.4% in total), while for Medicare, the employer and employee each pay 1.45% (2.9% in total). Self-employed workers pay all 12.4% for Social Security and 2.9% for Medicare themselves.
When will the President extend the payroll tax deferral?
However, the president made additional remarks that were not contained in the memorandum itself, indicating that he intended to extend that deferral beyond Dec. 31, 2020; to waive any later obligation on employees to pay the deferred contributions; and even that he planned to eliminate payroll taxes entirely. The following is an edited transcript of the relevant section of his remarks. (A full transcript of his press conference is available here, and his remarks can be viewed in full below.)
When will Social Security taxes be eliminated?
On Aug. 8, 2020, U.S. President Donald Trump said he intended to "terminate the tax," referring to Social Security and Medicare payroll taxes. It’s a step that would — if taken in isolation — remove nearly 90% of funding for Social Security benefits, and thus likely pose a threat to the continued existence of those programs.
Is it reasonable to remove Social Security funding?
It is reasonable to suppose that removing so much funding for Social Security, without replacing it, would pose a threat to the continued existence of Social Security itself and its associated OASDI benefits. In his Aug. 8 remarks, Trump made no reference to a plan for replacing the funding that would be lost if he carried out his stated intention to terminate payroll taxes, nor has he done so anywhere else. (Snopes asked the White House and the Trump campaign to provide details on how the president intends to cover the shortfall in Social Security funding, but we did not receive a substantive response from either.)
Did Trump cancel Social Security?
Trump did not explicitly vow to terminate Social Security, as those headlines claimed, but one of several plans he mentioned in an Aug. 8 press conference involved eliminating payroll taxes — a move that would, as things stand, remove the overwhelming majority of funding for Social Security and likely pose a threat to its continued existence.