A Possible Back Story on President Trump’s Payroll Tax Ideas
President Trump’s August executive order for a deferment of payroll taxes has, of course, attracted considerable attention, as has his remarks on potential elimination of the tax altogether. In fact, the results of one study–by progressive think tank Data for Progress and advocacy organization Social Security Works–indicated that a substantial majority of respondents preferred that the payroll tax be neither deferred nor eliminated.
The President’s intent with the payroll tax suggestions was to help stimulate the economy in the short term by putting more cash in the hands of workers, and in the long term to be a step toward Social Security reform. Advocating the use of general tax revenue to offset the loss of revenue to Social Security was hinted at as an avenue to protection of Social Security, and would require substantial traction in Congress to be achievable.
In a post on cnbc.com, Personal Finance Reporter Lorie Konish examines the role that the President’s payroll tax plan plays in the future of Social Security, noting that regardless of what happens on the issue, it opens the door for serious discussion on Social Security reform in the next administration. Quoting the Bipartisan Policy Center’s Shai Akabas, Ms. Konish adds, “It’s a possibility that both parties realize that this is coming and this is as good a time to resolve it as any in the next administration.”
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.