The Trump Administration is supposedly considering a Social Security payroll tax holiday. NOW APPARENTLY OFF THE TABLE, but there is a point to be made nevertheless.
The following is from a press release SocialSecurityWorks. It’s nonsense.
If the money lost in payroll contributions is replaced with general revenue, Social Security will still be a target. Currently, Social Security doesn’t add a penny to the deficit. Raiding its dedicated revenue is a set up to the claim that it must be cut in the name of reining in the debt!
You can have your own opinion about Social Security and it’s finances, but intentionally misleading people for political gain is inexcusable in my opinion.
A payroll tax holiday is at best a very debatable idea, but the above statement is designed to scare seniors and nothing else. Look at it logically.
Assume the tax holiday happens. As with the Obama plan, which did the same thing, the shortfall is replaced in the Social Security Trust from general revenue. Once there, the trust fund has no impact on the deficit, it’s not a recurring event and money cannot be taken from the trust except to pay benefits. So what is the it that must or can be cut?
Even if Social Security benefits were subsequently cut, which is never going to happen, there would be no affect on the deficit.