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Social Security News and Updates

Coronavirus, Payroll Tax and Social Security

Posted by Peter Bohan | Mar 13, 2020 | 0 Comments

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A recent proposal made by Trump with the objective of injecting a boost to the sagging economy was a payroll tax suspension. Critics warn that it is a plan that is not only poorly designed towards the objective (providing minimal additional spending money to people), but that it is potentially a thinly veiled sleight-of-hand which removes a massive amount of funding into the Social Security fund (estimated by some sources as 1.7 trillion dollars if suspended for remainder of the year). This is to be purportedly "restored" to the SSA fund upon lifting the suspension. Quoting a recent LA Times article: "Social Security advocates have been unanimous in condemning any stimulus proposal that would divert Social Security's revenue stream. (They were opposed when Obama did it, too.) Their fear, which is reasonable, is that restoring the full tax would be more difficult than cutting it in the first place, leading to a permanent hole in the program's income." WARNING: In the event that Trump's promise is unfulfilled (to restore deficits to Social Security fund following the suspension of payroll tax), which is foreseeable in light of his track record, then the subsequent dialogue will rear its ugly head once again that "privatization is needed to 'fix' Social Security".  

About the Author

Peter Bohan

Attorney since 1996; dedicated to representing Social Security Disability claimants before the Social Security Administration.

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