Social Security Cuts Could Happen in 3 Years If Trump's Payroll Tax Break Is Made Permanent
Given the financial impact of the COVID-19 crisis, Americans are desperate for relief, and with stimulus bill negotiations stalled, President Trump has elected to take matters into his own hands. Earlier in August, he signed a number of executive orders, one of which calls for an employee payroll tax deferral beginning in September and lasting through the end of the year.
Currently, workers pay a 6.2% Social Security tax on up to $137,700 of earnings. Under the president's order, workers earning up to $104,000 per year won't have to pay that 6.2% for the next four months, leaving them with larger paychecks.
Now to be clear, the president only has the authority to defer those payroll taxes right now. But he's also pledged that if he's reelected in November, he'll seek to permanently forgive them. And while that may be good news for workers, at least in theory, it's terrible news as far Social Security is concerned.
Source Fool.com
