Biden has right payroll tax plan With the election approaching, voters should pause to assess the effect of President Trump’s plans to end the payroll tax if he is reelected. The payroll tax funds …
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Biden has right payroll tax plan
With the election approaching, voters should pause to assess the effect of President Trump’s plans to end the payroll tax if he is reelected. The payroll tax funds Social Security and Medicare Part A. Trump proposes funding the programs with general tax revenues which would require increasing those taxes by over $1 trillion per year to fund Social Security alone, a highly unrealistic possibility. Without the current ongoing funding, Social Security’s actuary has advised that Trump’s proposal would end disability benefits next year and retirement benefits in 2023.
As of December 2019, Social Security benefits paid to residents of Douglas County total $73,461,000 per month, every month. The local economic effect of their loss is apparent. Also, if it were possible to switch to general tax funding, the current employer match would be lost, shifting the tax burden away from corporations and wealthier individuals to workers. Lastly, benefits would become an entitlement or welfare, no longer an earned benefit and much easier to cut.
Why is the president proposing such a disastrous change? Ending the employer match will cut taxes for his businesses significantly. He will profit enormously.
Joe Biden has proposed changes to the current payroll tax cap formula to fully fund Social Security going forward. A Trump win may very well end Social Security and Medicare. Then, how would we address financial issues related to aging, disability and premature death, particularly at an overhead cost of less than 1% which Social Security does? The responsible vote is obvious.
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