Politics

Pelosi: Cutting Payroll Tax Would Devastate Social Security Fund

House Speaker Nancy Pelosi (D-Calif.) warned that if President Donald Trump is allowed to end the payroll tax, the Social Security Disability Insurance Trust Fund would be expended by 2021 and the Social Security Old Age Survivors Insurance Fund would be exhausted by 2023.

Pelosi said in a statement Monday that the Social Security Administration chief actuary analysis shows the potential devastating effects of ending the payroll tax, which the president has suggested.

“President Trump continues to play fast and loose with the health and well-being of Americas seniors. The new analysis today shows the swift potential devastation of President Trumps reckless call to terminate the payroll tax: shattering the sacred promise of Social Security,” said Pelosi in a statement Monday.

Pelosi vowed that Democrats would “stand strong” for senior citizens Social Security benefits.

The Speaker made the statement after Stephen C. Goss, chief actuary at the Social Security Administration, responded to Democratic Senators query on what the consequences would be for Social Security insurance funds if payroll tax was terminated.

Senators Chris Van Hollen (D-Md.), Ron Wyden (D-Ore.), Bernie Sanders (I-Vt.), and Senate Minority Leader Chuck Schumer (D-N.Y.) in the Aug. 19 letter asked the chief actuary to analyze the potential impact of a proposal to get rid of Social Securitys payroll and self-employment taxes, both paid by employers and employees, on Social Security insurance.

“Specifically, what would be the implications of such legislation for revenue coming into the OASI and DI trust funds, at what point would the OASI [Old Age and Survivors Insurance] and DI [Disability Insurance] trust fund asset reserves become depleted, and how would this affect the ability to pay scheduled OASI and DI benefits on a timely basis?” the senators wrote.

Goss responded, “If this hypothetical legislation were enacted, with no alternative source of revenue to replace the elimination of payroll taxes on earned income paid on January 1, 2021, and thereafter,” the Social Security Insurance Funds would run out of money by mid-2021 and mid-2023.

Schumer, a staunch critic of the president, called Trumps payroll tax holiday and potential termination, “reckless.”

“This report confirms the devastating impact President Trumps reckless Executive Order will have on Social Security. President Trumps plan to eliminate Social Securitys dedicated funding would endanger seniors Social Security and could mean the end of Social Security Read More From Source

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