In his August 12 press conference, President Trump said:
1.) He is fully committed to the continuation of Social Security and Medicare.
2.) He would forgive the debt of those whose income is less than $104,000 who forego paying the payroll tax this year.
3.) In 2021, if re-elected, u00a0he will end the payroll tax to provide American taxpayers more money in their paychecks.
4.) He will fund Social Security and Medicare through the General Fund of the U.S. Treasury.
Do you agree with the President’s plans for Social Security?
I am unclear as to where the payroll tax that currently funds Social Security and Medicare would be shifted so that the money coming in for these two programs would stay the same.
Is the plan to enact some other tax to replace the payroll tax or to cut other programs that are funded in the current budget and to divert those funds to fund Social Security and Medicare ?
So rather than the periodic re-direction of funds from the so-called Social Security “trust fund” (there is NO actual “trust fund”, it is just a separate general ledger entry at the U.S. Treasury Department) and shifting the money to pay for “other priorities” (prop up SSDI a few years back by pulling billions out under Obama being just one recent example, but there are several others), these government programs will be treated exactly the same way as every other federal program. No problem with it whatsoever. It’s about time we started cleaning up the bureaucratic hocus pocus surrounding these two federal government programs and treated them the same.
For those that think this means there is a potential to “cut” either program, when is the last time the federal government actually, really cut ANY federal program? Answer: Never! Especially with any of the social programs. The worst that would ever happen is that they slow the rate of budget growth from say 7 percent per year to maybe 5 or 6 percent for a year or two. Then they turn around and do a one-time boost in the budget item to get everything back to exactly what the spending cuts would have “saved”. So $100 budgeted this year instead goes up $105 to $106 dollars instead of $107 dollars. That is still increasing the budget each and every year. Smoke and mirrors as the federal government continues to increase budgets more each and every year.
For those worried about SS or Medicare, worry more about what happens if Biden / Harris win in November and the Democrats regain control of the Senate. Under the socialist health care plans of the Democrats, both SS and Medicare cease to exist. Their existing funds all get transferred to fund the expansion of benefits to cover both illegals and anyone who happens to come into this country and demand government provided healthcare. Not to mention also expanding Medicare to essentially cover all Americans, not just those over 65. It’s been clearly stated in their platform since the primaries. Then there are the rest of the already documented Democrat policies that will entail massive spending for the GND, wholesale revision of housing, means and type of travel and the rest of the socialist manifesto that Biden campaign and the DNC signed onto from Sanders, AOC and the other pure socialists now running the party on how to transform the United States.
Of course I do get this will NOT be a popular view, as there will be an endless number of posts about “I paid into the system and I want my money back” or some such, but I certainly would prefer Trump’s choice, which actually makes a lot of sense from an administrative perspective of the two programs, over the Democrat alternative where whatever you’re getting now is guaranteed to go way down under the “new normal” of socialist rule.
In theory this sounds great for all of the tax payers who are still working, until you project out several years (maybe not that many) and consider the ramifications of “defunding the Social Security tax”. Trust me, there is nothing that I would like to see more than lower taxes. The problem is that many Americans either choose not to, do not know how to, or can not afford to save toward retirement. There is the mentality that, “Social Security will take care of my retirement. I do not need to save”. Social Security was never intended to support you in retirement. It was intended to be a supplement to what you have saved during your working years. As a one year grace period to help offset the Covid-economy I would fully support The Presidents proposal. However, by “defunding the payroll tax” it is hurting the people who will need Social Security the most. Those with no or little savings. Remember, Social Security is based upon what a person pays into the system during their working years. Although it is not a direct correlation, there is a percentage formula used. If you pay less into the system, then your benefits will be less once you start collecting. For those who know how to save and budget on their own The Presidents proposal sounds like a great program. More money in the paycheck means more money that we can probably invest at a higher rate than what the Government is giving on returns. However, this makes one huge assumption; that most people know how to, have the discipline to, and are able to save, budget and invest on their own. I rest my case.
I may have missed it, but what is his long term plan? Seems that he must have a plan so that those of us depending on SS and Medicare won’t be left with nothing. Let’s not jump on any opinion until we see the entire picture.
Our SS monies are there now… AND in no way will we ever get our money paid back from the general fund. The President, I think is right there will be more monies in the paycheck providing and including the EMPLOYER includes the other “half” the employer pays. Let me add my note, I feel President Trump is for us, the American people and will not screw the American people the way our PASSED Presidents did.
This seems like slight of hand, and, (rather like EZ Pass or Forever stamps) designed to make the amount spent invisible. The money has to come from somewhere. Disappointed he isn’t suggesting real solutions—and I’m a supporter.
Social security will work if the increase in money that citizens see in their paychecks is saved in order to supplement the social security payment they are to receive upon retirement. I am retired, have contributed to SS my entire working career and have no pension, so it is important that I saved in order to sustain myself. If receiving extra income encourages increased indiscretion in spending and personal debt, the change will not provide the benefit for which it is intended. One can actually be worse off in the end financially speaking.
the social security and medicare should both be in protected accounts, not in general funds where they can be used by anyone for anything
Not enough details for a decision regarding this issue. I need to see numbers.
I EARNED my social security “benefit”. Once this benefit becomes the largesse of government it becomes just another WELFARE program that younger workers already complain.
I would like to see all moneys come out of government and into a diversity of private funds. Government will only take the money for themselves and we have seen how crooked they are about throwing away money that is not theirs.
Paying social security benefits as a part of the federal budget is extremely problematic leaving it to the whim and lack of wisdom of our elected officials. If you want to make social security solvent make the government pay back the money they borrowed from it not add to our federal debt and enable it to literally be declared an entitlement instead of a paid into retirement plan.
There should be a private option for Soc Sec.
Repeal the 16th Amendment. We were never intended to have a federal I come tax. It has given the fed govt just the kind of power the Founders feared & fought against.
Years ago my college social security teacher said that congress approved money being taken out of the fund because there was sooo much money in the social security fund and allowed pet projects to take money out as loans which was never repaid back into the fund.
President Trump has done more the USA since I came here from the UK in 1965. G-D bless our president and G-D bless the USA??????
Some of this sounds like Nancy Pelosi’s proposal from years ago. What bookkeeping tricks are going to to be used to figure the actuarial tables as to payouts? If the government keeps going with all of these proposed social giveaways, the U.S. will become another Argentina in several decades. A hand up is needed. Not a hand out. It just smacks of more bureaucracy. Also if the reports circulating right now are correct,there is a tremendous amount of money still not spent from the original stimulus.
I agree with this for the simple reason that the politicians have ruined Social Security by making the funds accessible by politicians to spend elsewhere. The downside is, once done, it becomes an “entitlement”. Right now, SS is not an entitlement because it was solely funded by the taxpayers. Current 50+ year olds have an expectation to receive SS benefits when they reach a certain age and rightly so, they paid into it their whole lives. This is just a first step to trimming back the SS program and you can’t trim it back if people have been contributing to it just like their parents did. Congress trashed SS for their own greedy reasons. We could save hundreds of billions annually by simply cutting the size of Congress in half, that would eliminate billions of special interest pork spending.
How about gov workers who had a choice between plans,and not pay in to soc sec and put the money their retirement fund. When they retire they try to then jump in to soc sec.
I would agree with ending the payroll tax if it was done by way of passing the FairTax. From what I understand the FairTax would increase government revenue while eliminating the IRS and allowing people to keep 100% of their income.
The federal government is broke. It has to borrow money EVERY year by selling bond debt to fund operations. With the fake pandemic, we will be adding $trillions more to the debt, perhaps for several years.. We are in negative wealth creation mode, unless you are in the top 20% and invested in the stock market. The economy is still shrinking compared to 2019. In the long run, the ONLY way Social Security and Medicare can survive is by the creation of fake electronic dollars out of thin air. Eventually Trump will leave office in early 2021 or 2025. Then what? The Democrat Marxists will replace the world’s economy (mainly capitalism) with the New Green Fiasco and your job will disappear. SS will be gone as will Medicare to be replaced by a monthly government starvation check of $1,000 and Medicare for all where you will be better off treating yourself if you are sick. This is your future as long as you bow down to the masking, distancing and isolation mandated by the Marxist Dems and wimpy Repubs. In this world, you never get anything for free…there is always a cost paid either by you or some other poor soul.
This is sheer nonsense and very disappointing. If he wanted to do something dramatically helpful he would allow us to elect to own our accounts. People need to be forced to save for their retirement. It must STOP being an entitlement.
If I remember correctly didn’t Bill Clinton put the social security money into the general fund when he was president. If that’s the case, what’s the difference if Trump pays your social security from the general fund?
Remember Al Gore with his “lock box ”
BS.
Just saying
I am a big believer in privatization. But we cannot hope that people will use a payroll tax cut to fund their retirements. It still needs some sort of management by a 3rd party.
I am not going to DISAGREE with ANYTHING Trump advocates with less than 90 days to the election!!!! NO MATTER WHAT HE MUST BE RE-ELECTED. The details can be lobbied hard for after Nov 3! The alternative is just too horrifying. BUT, in general, ss imo MUST be REFORMED. RAISE THE AGE!
I would rather these funds be put in individual investment accounts, the government has gotten poor returns on it. It would be your money, never part of the general fund.
Something has to be done to make SOC. SEC. sustainable for those who are on the system and to provide for those to come. CONGRESS (both parties, but DEMS in particular) has raped the once strong system and has refused to deal with it to make it stronger. I trust our President Trump to do what is right for us. HE has been the ONLY strong voice on our behalf. The Democrats are trying to destroy us and the Republicans are too weak and timid to oppose them.
Around 1965 Congress created the unified budget which places the taxes collected under FICA in the general fund. This has effectively happened already. The SS Trust Fund is nothing more than a line in a ledger. Get rid of FICA. It is regressive and a fraud.
I have paid into this plan since I have been 15 years old. The politicians take this money to finance wars and anything else they want. Do not mess with Social Security. Why not stop Federal Aid to countries that are out to hurt us like China, Russia and Iran.
If the president could find a way to see to it that congress could keep their hands off of SSI permanently I would be all for this plan.
The first thing that should be done is to get the freeloaders off the SS rolls. This was not meant to be used to finance the drug habits of people who don’t work or families with disabled children, etc. Retirees only should be collecting from this fund. If it was used for the purpose it was originalLy intended, there wouldn’t be such a shortfall. Funny how there are always talks about cuts to SS but not welfare. Stupid, stupid government.
Would be best If What Gangster J.F.K. Did could be reversed and Social Security had its on fund like it used to be from when it started
J.F.K. stole the money and pissed it against the wall in 6 months and on peoples Tax returns it used to say Social Security Insurance
Since then it says Social Security TAX
We pay into social security and Medicare with every paycheck for future needs. Congress had ABSOLUTELY no business taking money out of those programs
Id also say: CUT SS bureaucracy in DC alone, merge programs or services, combine Medicare & cut costs.
More can be done alone.
Have Congress & Senate pay into SS & Medicare.
ALL Govt employees pay into SS & Medicare.
Revamp SS.
Gen X & Millenials enter Medicare at ages 70, 75, or 80 IF warranted.
As long as so-called Social Security remains in the General Fund it will continue to be a losing proposition. With a 1% ROI it is laughable in this day and age with so many investment vehicles to choose from!
There is no Social Security Trust Fund. A bunch of Government “IOU’s” is not worth the paper on which it is printed. It’s time to increase the retirement age very gradually and to also tax all earnings without a limit on the ceiling. The formulas for benefits are based on earnings so those individuals making more will contribute more but will also collect more when they retire. In the meantime these “extra” funds could actually be put into savings/investment vehicles to grow and begin a real “trust fund” just like you and I have to do.
I would rather see the implementation of a couple of recommendations from GAO (1) raise early retirement age from 62 to 65 and (2) Eliminate the income cap so as to tax higher incomes more. The two actions combined will reduce the projected 2034 deficit from 24% to 7% which will ease the required benefit reduction.
Finally being on SS after all my working life paying for it I have a lot of contempt for this Roosevelt program. A lot needs fixed if we keep it but nobody wants to. I truly don’t believe there is any money in the actual account because once GOVERNMENT started borrowing from it, they never stopped!! It would be awesome if we the people could have our own representatives to fix the program once and for all.
We all know that the Social Security “fund” was emptied long ago for other programs, and that SSI recipients are being paid with todays payroll tax collected. Let’s revamp SSI to make one budget for retirees, and a TRULY separate budget for SSDisability recipients.
Don’t understand why We the People don’t have any power to remove judges whom routinely prevent true justice (proper understanding and enforcement of the US Constitution). The decision to not have Clinton testify in September is an INSULT to ALL of US. It’s true she probably would’ve pled the 5th/otherwise been uncooperative. However, it is NOT right/just for Clinton, Obama, et al to get away with the continual slander of President Trump which is STILL harming him and causing him unnecessary hassles to deal with each and every day! There should be something that can be done to stop that bad behavior now (Trump is STILL being harassed by Dems in public office); punish it; and prevent it from happening again in the future.
What Trump proposes can only work if Social Security and Medicare are eliminated as entitlement programs. The total responsibility for one’s retirement would be where it should be to begin with, oneself. But that is not what he is proposing and the entitlements will remain which nobody can afford and the debt too large already to ever be paid back. The Collapse that the Marxists want will come, But sooner.
Its time to help and protect the taxpayers and seniors who have paid faithfully into the system all these years!
We do not understand number 2. 2.) He would forgive the debt of those whose income is less than $104,000 who forego paying the payroll tax this year.
I agree, if he keeps his promise but do not cut and hurt other stuff.
Ever since LBJ and his cohorts moved SS into the General Fund it has been a mess. Had it be left untouched as was the intent the SS money would not have been subjected to being raided by just about every President since. Then Clinton decided to tax 85% of our payments which in my mind was NOT a wise thing to do. I’d be happy if the SS tax were made so it could not be touched by any Congress or any President. The only exception I would have would be in time of war.
Social security and Medicare are not “entitlements”. I have been paying into these funds since my teens, and when I became self employed I paid both the employee (12%) and employer (12%) shares.
To eliminate the payroll taxes and pay benefits from the general fund would effectively transform these programs into “entitlements” no different from welfare, snap, etc.
These funds need to be separated from the general fund and secured from pilferage by our legislators.
I think a better idea would be to invest a portion of “OUR” SS money instead of counting on future workers or budgets “contributions” to fund it. At least get a return on investment instead of a line item shuffle at the whim of bureaucracy.
Problem I have is the constant removal of money from S.S. by Congress to pay bullsxxt bills they run up. And now calling it an entitlement! Bush said there was a problem. Dems accused him of scarectatics. Then Obama said there was a problem and it could be out money around my retirement and dems cheer. First thing is ALL Congress and Senate need replacing starting with Pelosi.
Both should be eliminated. I prefer the hardship for me so my children and grandchildren can live freer then me. Since WW foisted the FED and Income Tax on us and FDR ballooned the socialist bureaucracy on us, real Liberty has vanished.
And like federal employees/military, budget doesn’t get passed equals no check.