President Trump She said over the weekend, “If I win on November 3, I’m going to forgive them [payroll
taxes for Social Security] and make permanent cuts in payroll tax. ”
Currently, employers and employees split the 12.4% payroll tax on the first $ 137,700 of 2020 earnings and also the 2.9% Medicare tax on all earnings. Self-employed workers pay the full tax.
Trump not only wants to suspend the social security tax during the pandemic crisis, but he says he wants to make permanent cuts in the tax.
First, the only people who pay these taxes are the people who still have their jobs and earnings. With millions of unemployed it can be argued that it would make more sense to increase deficit spending by providing help directly to those who have no income – the unemployed.
But the biggest issue revolves around the suspension of social security funding, especially permanent cuts.
Both Medicare and Social Security trust funds are running out of money – both face inability to pay full benefits if their problems aren’t resolved by raising funds or cutting benefits. This is foreseen by the Congressional Budget Office for Medicare in 2025 and Social Security in 2031.