President Trump has declared that he will effectively “terminate” Social Security and Medicare if he is reelected in November, according to Common Dreams.
- The Trump administration has been threatening to suspend the payroll tax, the funding mechanism for both Social Security and Medicare, in the hopes of providing economic relief for the Covid-19 pandemic.
- During a live press conference, President Trump shared his plans to make cuts to the payroll tax permanent if reelected, which would consequently bankrupt the two programs.
- The advocacy group Social Security Works jumped to point out the devastating consequences should the Trump administration go through with this promise. Nancy Altman, president of Social Security Works, said:
"Social Security is the foundation of everyone's retirement security. At a time when pensions are vanishing and 401ks have proven inadequate, Trump's plan to eliminate Social Security's revenue stream would destroy the one source of retirement income that people can count on. Moreover, Social Security is often the only disability insurance and life insurance that working families have. If reelected, Trump plans to destroy those benefits as well."
- The Trump administration has been suggesting cuts on the payroll tax for months, but economists shared that the move won’t have the effect they hope it would. Seth Hanlon, a tax expert and senior fellow at the left-leaning Center for American Progress, told Business Insider:
"It's like borrowing money from the Social Security and Medicare trust funds to give to employers just to hold. They're just gonna hold the withheld taxes because they'd have to pay it eventually."