Pres. Trump's push for a payroll tax holiday could leave Social Security and Medicare on even shakier ground. Their finances have long been troubled; Coronavirus-induced layoffs have slashed the amount of payroll tax revenue going into their trust funds.
The entitlement programs' finances have long been troubled. And the crush of coronavirus-induced layoffs has only deepened the problem by slashing the amount of payroll tax revenue going into their trust funds.This isn't a far-off problem that retirees' grandchildren would face. If this economic downturn is as bad as the Great Recession a decade ago, then the Social Security trust funds could run out of money in 2029, according to the Bipartisan Policy Center.
It's unclear exactly how the President would lighten payroll taxes. Only Congress has the power to actually cut the levies, and when it did so under President Barack Obama, it reimbursed Social Security's trust fund out of general revenue. Trump may look to temporarily suspend the collection of the tax, similar to postponing the due date of income taxes to July 15, though that would leave workers with a big bill at the end of the period.
Trump adviser: Additional $600 is a disincentive to go back to work 05:15Using employment projections by the Congressional Budget Office yield the same estimate, according to David Shulkin, the former Veterans Affairs secretary and a health policy fellow at the University of Pennsylvania.The unemployment rate was 3.5% in February, just before the coronavirus upended the economy. The CBO estimated earlier this year that the annual unemployment rate would be 11.5% for 2020 and 9.3% for 2021.
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