Are Eliminating The Tax And Ending Social Security Equivalent
In defense of its;posts, Social Security Works argued that advocating for termination of the payroll;tax and termination of Social Security are the same. The payroll tax is known as the Federal Insurance Contribution Act tax, after all.
Linda Benesch, a spokeswoman for Social Security Works, told USA TODAY;that there is “not” a distinction between cutting Social Security and cutting its dedicated source of funding.
“Nearly 90% of Social Security’s funding;comes from payroll contributions, and if Trump terminated payroll contributions, the other funding sources would be insufficient,” Benesch wrote in an emailed statement. “By law,;Social Security is forbidden from paying benefits if there is not sufficient revenue to cover the cost.”
Nancy Altman, the president of Social Security Works, told USA TODAY that the Social Security trust;fund;has a surplus of $2.9 trillion only enough to last three years without new tax revenue.
“The payroll taxes bring in close to a trillion dollars every year, and the benefits cost around a trillion dollars,” Altman said. “By 2023, there’s no more money in the trust fund.”
But Altman admitted;that the administration’s actions to date “aren’t going to end Social Security.”
It’s what Trump has said;he will do terminate the tax that they believe is equivalent to a promise to end Social Security.
Tony Romm The Washington Post
President Donald Trump pledged on Saturday to pursue a permanent cut to the payroll taxes that fund Social Security and Medicare if he wins reelection in November, a hard-to-accomplish political gambit that some experts see as a major headache for the future of the country’s entitlement programs.;
Trump unexpectedly promised the policy action as he signed a directive that aims to help cash-starved Americans amid the coronavirus pandemic. The order allows workers to postpone their payroll tax payments into next year but doesn’t absolve their bills outright – though the president said he would seek to waive what people owe if he prevails on Election Day.
“If I’m victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax,” Trump said at a news conference in Bedminster, N.J. “I’m going to make them all permanent.”
“In other words, I’ll extended beyond the end of the year and terminate the tax,” Trump later added. “And so we’ll see what happens.”
Major changes to the tax code fall entirely to Congress, so Trump alone cannot waive Americans’ tax debts or enact permanent changes to tax law. Democrats and Republicans alike already had balked at Trump’s push for a payroll tax holiday in negotiations over the next round of coronavirus aid, suggesting a more lasting tax cut may be even tougher to secure if Trump does indeed win reelection.
What Seniors Need To Know About Trumps 2021 Federal Budget
Trump’s proposed budget reduces Medicare spending by 7% over the next ten years, among other cuts to … senior programs.
Today, President Donald Trump and the White House Office of Management and Budget released a proposed 2021 budget. Trumps budget includes cuts to key senior programs like Medicare, Medicaid, and Social Security Disability Insurance. While the proposed budget would slash funding for many programs that seniors rely on, other important areas for seniors, like veterans healthcare, would get a boost.;
Seniors should think of the proposed budget as President Trumps wish list: not all of his proposals will take effect. Most, but not all, of his proposals would require the cooperation of the Democratic-controlled House of Representatives and the Republican-controlled Senate.
Here are the line items from Trumps 2021 budget that would have the greatest impact on seniors.;
The Budget Would Reduce Medicare Spending
President Trumps budget would reduce Medicare spending by a total of $756 billion between 2021 and 2030, a decrease of 7%.;
Future Of Medicare Funding Uncertain Under Trump Presidency
President Donald Trump’s vow to save Medicare from budget cuts is facing a snag as the 2018 budget makes its way through Congress.
The promise, along with maintaining current funding levels for other entitlement programs, was one of Trump’s earliest campaign pledges. “Save Medicare, Medicaid and Social Security without cuts. Have to do it,” he said in his presidential announcement speech.
The 2018 White House budget proposal released in May left Medicare benefits largely untouched compared with Medicaid, which would see a more than $600 billion decrease over 10 years compared to current spending levels. Still, Medicare spending would decrease by more than $50 billion in the next decade compared with current levels.
Though the proposed budget doesn’t spell out large direct cuts to Medicare, cuts to other programs would indirectly affect the senior health insurance program. For instance, the budget included eliminating the State Health Insurance Assistance Program, which provides Medicare beneficiaries with counseling and assistance to navigate the health care system.
However, those cuts won’t necessarily happen because the White House budget proposal is more of a wish list that the president gives to Congress, where both the House of Representatives and the Senate must create and agree on a final budget to be signed by the president. ;
Lipschutz said the upcoming deadline could pressure Republicans to hastily pass legislation on health care.
President Trump Wont Destroy Social Securitybut Hes Not Going To Save It
Former Vice President Joe Biden is running campaign ads that claim President Trump signed an executive action directing funding cuts for Social Security and proposed slashing hundreds of billions of dollars from the Social Security Trust Fund every year.;
The problem is, however, that this just isnt so.
A Biden campaign TV ad falsely claims that a government analysis of President Donald Trumps planned cuts to Social Security shows that if Trump gets his way, Social Security benefits will run out in just three years from now, says FactCheck.org.;
The cliche politics aint beanbag exists for a reason: Campaigns use overhyped rhetoric to distort their opponents positions and make them appear less electable. Seniors should rest easy and understand that their Social Security benefits arent going anywhere.
But this dynamic of misleading charges belies a more fundamental problem: Something will eventually need to be done to buttress Social Securitys finances. Episodes like this dont bode well for future attempts to reform Social Security.
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Trump Hints He May Be Open To Cutting Medicare Safety
At the right time, we will take a look at that. You know, thats actually the easiest of all things, if you look, President Donald Trump said in response to a question whether cuts to programs like Medicare and Social Security were on the table. The statement was a departure from the last election when Trump tapped into the popularity of the two programs while wooing voters.
The New York Times:Trump Opens Door To Cuts To Medicare And Other Entitlement ProgramsPresident Trump suggested on Wednesday that he would be willing to consider cuts to social safety-net programs like Medicare to reduce the federal deficit if he wins a second term, an apparent shift from his 2016 campaign promise to protect funding for such entitlements. The president made the comments on the sidelines of the World Economic Forum in Davos, Switzerland. Despite promises to reduce the federal budget deficit, it has ballooned under Mr. Trumps watch as a result of sweeping tax cuts and additional government spending.
Axios:Trump Suggests Entitlement Cuts Could Come In His Second TermWhy it matters: Trump shied away from committing to cuts to social safety-net programs like Medicare, Medicaid and Social Security during his 2016 campaign. But his willingness to consider such measures now marks a shift that would likely appeal to the deficit hawks in the Republican Party.
What This Means For You
Trumps budget would trim spending by about $45 billion on Social Security Disability Insurance and Supplemental Security Income, a program for disabled children and adults, by promoting return-to-work programs, according to the nonpartisan Committee for a Responsible Federal Budget.;
Romig says that suggests about 5% of disabled workers would return to the workforce, which she views as unlikely given that workers who qualify for disability dont have a track record of returning to the labor market.;
Its possible that spending in the program could be trimmed through another method: In November, the Social Security Administration proposed more frequent continuing disability reviews, or checks to make sure that people receiving disability payments are, in fact, still disabled.;
While its unclear when or if this proposal will be adopted, its impact would likely knock thousands of disabled Americans from the program, Romig says. Many of those disabled workers will lose their coverage simply because they fail to keep up with the paperwork, she adds.
Day : Trump: Cutting Social Security And Medicare Will Be On My Plate
Surrounded by billionaires, Donald Trump suggested that a second term could come with the stripping of entitlements from millions of Americans.
Wednesday, while in Davos, Switzerland for the World Economic Forum, surrounded by millionaires and billionaires, Trump sat down with CNBC for an interview about the economy and trade. Joe Kernen asked Trump, about cutting entitlements, such as Social Security and Medicare. Trump responded, At some point they will be .
JOE KERNEN: Entitlements ever be on your plate?
PRESIDENT TRUMP: At some point they will be. We have tremendous growth. Were going to have tremendous growth. This next year I itll be toward the end of the year. The growth is going to be incredible. And at the right time, we will take a look at that. You know, thats actually the easiest of all things, if you look, cause its such a
JOE KERNEN: If youre willing
PRESIDENT TRUMP: big percentage.
JOE KERNEN: to do some of the things that you said you wouldnt do in the past, though, in terms of Medicare
PRESIDENT TRUMP: Well, were going were going look. We also have assets that weve never had. I mean weve never had growth like this.
He then went on to ramble about employment numbers by minority group, as if thats relevant to the question.
Trump also indicated his belief that the wheel was invented by an American.
1,098 days in, 364 to go
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No Service Cuts But The Trust Fund Took A Hit
Protecting Medicare was was one of Trump’s earliest campaign pledges. “Save Medicare, Medicaid and Social Security without cuts. Have to do it,” he said in his presidential campaign announcement speech.
So far, the promise of Medicare remains in force. There have been no cuts in services or a change in the government’s responsibility to fund the program.
That said, Medicare’s resources to pay for those services has shrunk, and both Trump and House Republicans have proposed ways to trim Medicare spending over the next decade.
On the resources side, a side effect of the Republican 2017 Tax Cut and Jobs Act was a loss of tax dollars flowing into Medicare’s Hospital Insurance Trust Fund. That’s the main pot of Medicare money, and the Medicare Trustees forecast in their 2018 report that the fund would run out of money in 2026. A year earlier, they said it would last until 2029.
On Trump’s watch, it lost three years of solvency.
In a presentation at the American Enterprise Institute, a market-oriented think tank, the chief actuary at the Centers for Medicare and Medicaid Services, Paul Spitalnic, said two of the lost years were due to lower than expected wage growth.
But the other lost year came from the Republican tax cuts.
“The Tax Cuts and Jobs Act of 2017 decreased individual tax rates and as a result, there is somewhat less income coming into the trust fund,” Spitalnic said. “That does have an effect of making depletion of the trust fund a year earlier.”
Did They Back Up Their Claim
Linked inside the tweet was a letter from Stephen C. Goss, the chief actuary of the Social Security Administration. In this letter, which was penned at the request of four Democratic senators, Goss explains the effects of a permanent payroll tax cut. Goss letter states that, f this hypothetical legislation were enacted we estimate that Trust Fund asset reserves would become permanently depleted in about the middle of calendar year 2021, and also that Trust Fund reserves would become permanently depleted by the middle of calendar year 2023.
This is a memo from a government official that describes what would happen if payroll taxes were to be permanently cut and no alternative source of revenue was used to pay for these benefits. But is that the presidents plan?
Trump’s Election Year Budget Proposal Slashes Medicaid Other Social Safety Nets
WASHINGTON President Donald Trump unveiled a $4.8 trillion election-year budget plan on Monday that recycles previously rejected cuts to domestic programs like food stamps and Medicaid to promise a balanced budget in 15 years all while leaving Social Security and Medicare benefits untouched.
Trumps fiscal 2021 plan promises the government’s deficit will crest above $1 trillion only for the current budget year before steadily decreasing to more manageable levels, relying on optimistic economic projections, lower interest costs, scaled-back overseas military operations and proposed cuts to agency budgets that run counter to two previous budget deals signed by Trump.
The budget sets the course for a future of continued American dominance and prosperity, Trump said in a message accompanying the document.
There is optimism that was not here before 63 million Americans asked me to work for them and drain the swamp, Trump said. For decades, Washington elites told us that Americans had no choice but to accept stagnation, decay, and decline. We proved them wrong. Our economy is strong once more.
The plan had no chance even before Trump’s impeachment scorched Washington. Its cuts to food stamps, farm subsidies, Medicaid and student loans couldn’t pass when Republicans controlled Congress, much less now with liberal House Speaker Nancy Pelosi, D-Calif., setting the agenda.
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Trump The Disrupter Takes Dead Aim At Social Security
Throughout the 3 ½ years of his presidency, Donald Trump has disrupted nearly every major institution of government, save one. He has politicized the military, upended strategic alliances that have been a bedrock of US foreign policy for 75 years, overturned civil rights protections, undone the postal service, andwith help from a Republican Congressremade much of the federal income tax code. ;
But in his 2016 campaign, Trump vowed to leave Social Security untouched. And he has, somewhat uncharacteristically, kept that promise. Until now.
On Saturday, in a press briefing to promote a package of unilateral initiatives aimed at responding to the COVID-19 economic slump, Trump declared a longer-term goal. He announced that;if reelected, he would terminate the payroll tax that funds Social Security and the payroll tax that supports the hospital insurance piece of Medicare. Currently, employers and employees each pay 6.2 percent of wages up to $137,700 for Social Security and 1.45 percent of wages for Medicare, with no cap.
Trumps unilateral deferral of the employee share of the Social Security tax is likely to have little impact on either the programs finances or the economy. His initiative will not benefit the 30 million people who have lost their jobs in the pandemic, since they earn no wages and pay no Social Security tax.
Altering the status of Social Security
The Biden Campaigns Questionable Social Security Claims
The Biden camp justifies its claims about President Trumps proposed cuts to Social Security by pointing to the Trump administrations recent efforts to implement a payroll tax holiday as part of the ongoing efforts to blunt the economic impact of Covid-19. Payroll taxes help fund Social Security, but they are not synonymous with the program.
In August, the CARES Acts supplemental $600 weekly unemployment benefit ran out. Negotiations for a second stimulus package among the White House, the House Democrats and the Senate Republicans were going nowhere fast. In response to the deadlock in Congress, President Trump enacted a payroll tax holiday by executive order.
Ending the payroll tax has been something of a pet goal for President Trump, even though economists say it wont do much to alleviate the pain endured by laid-off workers.
At the end of the year, the assumption that I win, Im going to terminate the payroll tax, which is another thing that some of the great economists would like to see done, Trump said in mid-August. His political team tried to clarify and massage those comments later, saying Trump was referring to his executive order to defer payroll taxes.
At the end of August, the chief actuary at the Social Security Administration penned a letter saying that removing payroll taxes would cause funding for Social Security to run dry by the middle of 2023.
Trumps Scheme To Sabotage Medicare And Social Security
Dont get too comfortable with your Social Security and Medicare.
Thats the warning President Trump sent from his New Jersey golf course Saturday as he announced a package of coronavirus relief that turns out to be more of a cynical and cruel campaign stunt.
Heres why its cynical:
- Democrats and even some Republicans are questioning the legality of his new executive orders, which depend in large measure on the voluntary cooperation of employers and cash-strapped state legislatures.
- The cut in payroll taxes that finance Social Security and Medicare is actually a deferment that workers or their employers would have to cough up next year. But Trump vowed to make the cut permanent.
- The temporary $400 in weekly supplemental unemployment benefits turns out to be only $300. States would be challenged to kick in another $100, but most legislatures are cash-strapped and forbidden by constitutions or laws to run deficits like the federal government can. They cant print money either. Trump would filch the $300 of federal money from funds budgeted for natural disasters in hurricane season no less and that is certain to be challenged in court.;
- The order to resume a moratorium on evictions is nothing more than an instruction to government agencies to consider whether it needs to be done and to look for money in their existing budgets to help terrified renters.
Hes raising false hopes for everyone else. Thats what makes it cruel.
This is what he said: