Trump administration allows deferral of Social Security tax
It allows employers to offer their workers a temporary deferral of the 6.2% payroll tax employees pay into the Social Security Trust Fund for the rest of this year. Regardless of the practical impact of Treasurys action, it appears Social Security will be thrust into the election maelstrom. Trump has also teased that if hes reelected he would press for a permanent cut in Social Security taxes. As a candidate in 2016, Trump promised not to cut Social Security and Medicare, and Democrats say he has now abandoned that promise. Administration officials say any legislation would repay the Social Security Trust Fund as well.
Dems say Trump's payroll tax break weakens Social Security
WASHINGTON President Donald Trumps move to defer Social Security payroll taxes could be taking him into treacherous political territory. What it does is undercut Social Security, Rep. John Larson, D-Conn., said Monday, addressing Trump's move. With more than 60 million beneficiaries, Social Security is funded by a 12.4% payroll tax evenly divided between employees and employers. Many congressional Republicans have been cool to Trumps payroll tax cut. Congress approved a a temporary cut in the Social Security tax during the Obama years, in the aftermath of the 2007-2009 recession.