White House Walks Back ‘Permanent’ Payroll Tax Cut Amid Social Security Concerns


TOPLINE

White House advisors on Sunday walked again President Trump’s assertion that he would make “permanent cuts” to the payroll tax if reelected, insisting that the president would protect the first funding supply for Social Security, an entitlement program with overwhelming bipartisan assist.

KEY FACTS

Trump introduced a payroll tax vacation as one among 4 government actions in an try to chop via the impasse between congressional Democrats and Republicans and the White House on stimulus negotiations.

In a speech asserting the actions at his golf resort in Bedminster, N.J., on Saturday, Trump additionally introduced, “If victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax,” including “I’m going to make them all permanent.”

Trump’s announcement was taken additional by Erin Perrine, a senior advisor to his reelection marketing campaign, who tweeted that Trump would “look into terminating the payroll tax permanently” in a second time period.

But these bulletins drew swift and fierce condemnation from liberals, who had been fast to notice that the payroll tax funds Social Security and Medicare, broadly standard packages the defunding of which might likely injury Trump politically.

White House financial advisor Larry Kudlow asserted on CNN’s State of the Union that Trump “will protect Social Security and Medicare,” claiming that the deferral, not a payroll tax reduce, is what “will be made permanent. It will be forgiven,” which CNN host Dana Bash argued is “not what the president said at all.”

Treasury Secretary Steven Mnuchin stated on Fox News Sunday that, if reelected, Trump would “push through legislation to forgive that so, in essence, it will turn into a payroll tax cut,” including the misplaced income could be offset by “an automatic contribution from the general fund to those trusts funds.”

Chief Critic

“Here’s the problem: payroll taxes go exclusively to fund Medicare and Social Security, however much they dislike those payroll taxes, Republicans have always opposed replacing them with general tax revenues,” tweeted Patrick Chovanec, an adjunct professor of worldwide and public affairs at Columbia University. He notes that even with Congress signing on to a payroll tax vacation, it will “create a hole” in funding Medicare and Social Security, which Republicans would usually be reluctant to fill. “Without Congress signing on, those taxes are just deferred a few months until a bigger bill comes due,” Chovanec concludes.

Crucial Quote 


“Democrats are going to destroy your Social Security,” Trump tweeted in January, including “I have totally left it alone, as promised, and will save it!” His marketing campaign has caught to that line at the same time as former Vice President Joe Biden has accused Trump of waging a “reckless war on Social Security” together with his government motion. “Sign of desperation for Joe Biden to bring up Social Security in response to President Trump’s EOs. This isn’t a topic he wants to get into,” tweeted Andrew Clark, the Trump marketing campaign’s fast response director, linking to a tweet accusing Biden of getting a “terrible record” on Social Security.

Big Number

74%. A Pew Research ballot in March 2019 tracked overwhelming public assist for sustaining current ranges of funding to Social Security. 74% of U.S. adults polled stated “no reductions should be made” in Social Security advantages for retirees, with the strongest assist coming, unsurprisingly, from older voters. 81% of voters aged 50 to 64 and 79% of voters 65 or older stated they’d oppose cuts to advantages, as did 68% of Republican voters,

What To Watch For

Asked by Fox News host Chris Wallace how the U.S. would pay for Social Security via the overall fund when the nation is already “running huge deficits,” Mnuchin stated these issues must be handled sooner or later. “You just have a transfer from the general fund,” he said. “We’ll deal with the budget deficit when we get the economy back to where it was before.”



Source link Forbes.com

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