Trump has signed a memorandum deferring payroll taxes into the next year and promised, if elected, to make permanent cuts to the payroll taxes. His goal is to de-fund Social Security as an excuse to shut it down if re-elected.
However, this move will not deliver more cash into people's pockets as we may need to pay back the deferred monies next year. Companies will also just have to hoard the cash to foot a future bill.
So, there will be no real benefits from such suspension and only downsides. Also, this suspension does not help the people facing the greatest hardship, the unemployed, as they are not getting paychecks to be taxed. Instead, it would put more money into the pockets of big businesses.
Experts have warned that Trump's directive would take the negative aspects of a payroll tax cut & exacerbate them: businesses would be unlikely to increase hiring or investment, workers wouldn't see greater take-home pay & the unemployed would still not see a cent.
As if that is not enough, both the Medicare and Social Security trust funds are running out of money––both face an inability to pay full benefits if their problems aren't solved by either increasing funding or cutting benefits. As is his goal, Trump's promised payroll tax cuts would have catastrophic fiscal effects on the social security programs when they are most needed.
The good news is that Trump does not have the authority to make major changes to the tax code, he has no right to waive Americans' tax debt or enact permanent changes to the tax law. Congress has such power.
- Congress to make level-headed decisions when it comes to taxes, keeping in mind that the best tax policy is a long-term one and not let the president's decision to undermine the entire financial footing of Social Security.
Please sign this petition if you believe in social responsibility, that our elderly who have worked hard throughout their lives should not live in poverty, that people who have lost their jobs due to the major health and economic crisis should not starve.