Trump weighs permanent payroll tax deferral, says it won't impact Social Security
From WWW.FOXNEWS.COM
President Trump suggested his decision to defer payroll taxes for some Americans via executive order could become permanent, saying it will have "no impact" on Social Security benefits.
"This will have zero impact on Social Security," Trump told reporters on Sunday before boarding Marine One. "We protect Social Security."
In an attempt to bypass a deadlocked Congress, on Saturday Trump signed four executive actions -- including one that postpones the collection of payroll taxes from Sept. 1 through Dec. 31 for individuals earning less than $104,000 annually, or less than $2,000 per week.
He said the cuts "may be permanent," but did not elaborate further.
Currently, all employees and employers pay a 6.2% payroll tax on wages capped out at $137,700. An employee earning $50,000 per year, for example, pays $3,100 in payroll taxes.
That money goes toward specific programs such as Social Security, health care, unemployment compensation and workers’ compensation. Workers also pay a Medicare tax of 1.45%.
Defenders of Social Security were quick to criticize Trump for suspending the taxes, suggesting it was part of a broader initiative to gut the social program.
"We just heard it straight from Trump's own mouth," Social Security Works wrote in a tweet. "If reelected, he will destroy Social Security."
The order is technically a deferral of payroll taxes — not a suspension — meaning that the taxes will eventually be due at a later date. However, Tru... (Read more)
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Submitted 1352 days ago
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