Illegal and stupid payroll tax deferment makes Donald Trump the Medicare and Social Security thief in the night
Opinion echo written by contributor Bert Peterson of Hastings, Nebraska, published in The Grand Island Independent, a Nebraska newspaper.
Nebraska echo: Donald Trump signed an illegal and useless Executive Order to defer the Social Security and Medicare payroll tax from Sept. 1 through Dec. 21, 2020.
This is fiscal insanity for the future of our retirees.
On the next day after he signed this bogus order, his economic advisor said the payroll tax deferral would average $1,200 per worker. This suggests retirees will not get a second $1,200 stimulus payment.
Secondly, in January 2021, the amount of the payroll tax deferral will be required to be repaid by both employees and employers unless Congress acts to make the temporary deferral permanent. This leaves the new Congress with a nightmare decision, to make the deferral permanent or to do nothing — thus requiring the repayment.
Finally, it is important to understand that both Social Security and Medicare are pay-as-you-go systems. Without the payroll tax, benefits will be paid from the respective trust funds, depleting them even faster than now.
This Social Security payroll tax deferral would reduce the trust fund by about 11% ($315 billion per 2020 Trustees Report). That trust fund is expected to be exhausted in 2035 with all Social Security benefits reduced by 21% after that date. If the deferred payroll taxes aren’t repaid in 2021, this Executive Order will hasten the date the trust fund is exhausted, and Social Security benefits reduced.
For Medicare, the payroll tax only effects the hospital portion of Medicare. This payroll tax deferral would reduce the hospital trust fund by about 49% ($95 billion). The hospital trust fund is expected to be exhausted by 2026. If not repaid in 2021, the hospital trust fund will be exhausted even earlier and beneficiaries responsible for much greater hospital co-pays.
This Executive Order deferring payroll taxes hurts 64 million Social Security and Medicare beneficiaries, who (have in the past....until now) tended to support this (fake!) president.
Politically it makes no sense and steps all over the “3rd Rail of politics?”
Nebraska echo: Donald Trump signed an illegal and useless Executive Order to defer the Social Security and Medicare payroll tax from Sept. 1 through Dec. 21, 2020.
This is fiscal insanity for the future of our retirees.
On the next day after he signed this bogus order, his economic advisor said the payroll tax deferral would average $1,200 per worker. This suggests retirees will not get a second $1,200 stimulus payment.
Secondly, in January 2021, the amount of the payroll tax deferral will be required to be repaid by both employees and employers unless Congress acts to make the temporary deferral permanent. This leaves the new Congress with a nightmare decision, to make the deferral permanent or to do nothing — thus requiring the repayment.
Finally, it is important to understand that both Social Security and Medicare are pay-as-you-go systems. Without the payroll tax, benefits will be paid from the respective trust funds, depleting them even faster than now.
This Social Security payroll tax deferral would reduce the trust fund by about 11% ($315 billion per 2020 Trustees Report). That trust fund is expected to be exhausted in 2035 with all Social Security benefits reduced by 21% after that date. If the deferred payroll taxes aren’t repaid in 2021, this Executive Order will hasten the date the trust fund is exhausted, and Social Security benefits reduced.
For Medicare, the payroll tax only effects the hospital portion of Medicare. This payroll tax deferral would reduce the hospital trust fund by about 49% ($95 billion). The hospital trust fund is expected to be exhausted by 2026. If not repaid in 2021, the hospital trust fund will be exhausted even earlier and beneficiaries responsible for much greater hospital co-pays.
This Executive Order deferring payroll taxes hurts 64 million Social Security and Medicare beneficiaries, who (have in the past....until now) tended to support this (fake!) president.
Politically it makes no sense and steps all over the “3rd Rail of politics?”
Like a thief in the night, senior citizens and those who qualify for Medicare as a result of kidney disease or black lung will be robbed of their benefits. Donald Trump is the Social Security and Medicare thief in the night. #VoteJoeBidenKamalaHarris2020
posted by Juliana L'Heureux | 11:30 AM
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