Trump's Push To Cut Payroll Taxes Would Gut Social Security. He Has No Plan To Fix It.

The president's gambit gives Democrats a potent attack line just months away from the November election.

8/14/2020 7:15:00 AM

The president's gambit gives Democrats a potent attack line just months away from the November election.

The president's gambit gives Democrats a potent attack line just months away from the November election.

for the rest of the year and permanently eliminate it if he is reelected in November would, absent additional action, result in disastrous revenue losses for the Social Security trust fund. The scheme is clearly designed to aid his bid for another term.

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But Trump says millions of Americans receivingSocial Securitybenefits shouldn’t fret because the massive budget gap created by slashing payroll taxes would somehow be offset with “tremendous growth” in the economy, which is currently in a recession and is in danger of sliding into another one because of the ongoing

coronaviruspandemic.“We’re taking it out of the general fund,” Trump told reporters at a White House news conference Wednesday when asked how he would fund Social Security. He acknowledged that would require congressional support to enact, which he currently doesn’t have and likely won’t even if reelected.

Like a homeowner trying to fix his sink and flooding his kitchen in the process, Trump’s plan would create an entirely new fiscal mess for the country on top of a public health crisis that has required Congress to pass trillions in new spending to help struggling businesses or those without a job or money to pay rent.

It would also undercut what his top aides and Republicans have been saying in response to demands from congressional Democrats for a larger stimulus package. Among other things, the two sides have been unable to agree on a top-line number for another round of fiscal relief, partly because the Trump administration and GOP lawmakers have ― after years of spending like drunken sailors ― rediscovered their concern about federal debts and deficits.

“From my standpoint, the breakdown in the talks is very good news. It’s very good news for future generations,” Sen. Ron Johnson (R-Wisc.). “I hope the talks remain broken down.”Trump’s proposed payroll tax cut would eliminate aboutin payroll tax revenue in 2021 alone and more in later years, according to the Center for American Progress.

The scheme also faces significant logistical challenges. Many employers may simply decide tocontinue withholding taxes from their employees’ paychecksabsent a guarantee Congress will actually forgive deferred payments, for example.The idea of cutting payroll taxes in order to stimulate the economy never had much support among Republicans even before Trump announced over the weekend that he was sidestepping Congress on the matter by taking executive action.

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“I understand why the president would like to waive the payroll tax, but only the Congress can do that, and the executive order makes that clear, so it’s not a, not the kind of solution he would like to have, I’m sure,” Sen. Roy Blunt (R-Mo.) said this week.

Senate Finance Committee Chairman Chuck Grassley (R-Iowa), meanwhile, said he could only support making Trump’s payroll tax holiday permanent if it was coupled with larger reforms to Social Security.“We’ve got to make sure that we keep our promises to senior citizens,” Grassley told

The Hill.Republicans are also worried that by messing with the financing of Social Security ― the infamous “third rail” of American politics ― Trump is giving Democrats an attack line on a silver platter just months away from the November election.Appearing in public for the first time with his new running mate, Sen. Kamala Harris, presumptive Democratic presidential nominee Joe Biden on Wednesday slammed Trump over his response to the coronavirus pandemic, saying he’s “issuing executive orders and making promises that in the end will defund the Social Security system while insisting that this virus will disappear.”

Biden’s campaign also began airing an ad in the battleground state of Florida this week ― a state with a large share of elderly retirees ― attacking Trump over Social Security and his frequent golfing trips. Read more: HuffPostWomen »

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Facebook Faces New Flashpoint With Trump Over Campaign To Push Voting By MailI am a breaking news reporter for Forbes in London, covering Europe and the U.S. Previously I was a news reporter for HuffPost UK, the Press Association and a night reporter at the Guardian. I studied Social Anthropology at the London School of Economics, where I was a writer and editor for one of the university’s global affairs magazines, the London Globalist. That led me to Goldsmiths, University of London, where I completed my M.A. in Journalism. Got a story? Get in touch at isabel.togohforbes.com, or follow me on Twitter bissieness. I look forward to hearing from you. So is this a backhanded apology for taking any ads in ‘16. I wouldn’t trust the fact checking...he told Congress it wasn’t his place. Fox doesn’t either. 'Trump has falsely claimed could lead to voter fraud' bissieness has declared that voter fraud cannot happen with mail in voting.

White House weighing whether Trump can sidestep Congress to cut taxes: report - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Spoiler Alert: No, he can’t. Taxing and spending is Congress’ role under Article I of the Constitution. Might as well try. Should give Biden an idea of what Republicans will surely also be totally cool with him getting away with too Yes. Great idea. Cut the main source of revenue for the govt as we spend trillions to spur demand. Sometimes you wonder how Donald trump went bankrupt so many times. Then you remember: he’s a fucking idiot who will fuck whomever he needs to. Problem is this is our government.

Opinion | In a brilliant political move, Trump proposes tax cut for the wealthyOpinion: In a brilliant political move, Trump proposes tax cut for the wealthy Why is that brilliant? No one has cauliflower in ears to listen to false statement from fake Trump Brilliant isn’t the word I’d use donni 😼

Donald Trump Trolls Bill Maher After Maher Delivers Trump EulogyDonald Trump trolled Bill Maher after his scathing Trump eulogy on last week's show. What does POTUS think he looks like? If he were trapped in a morgue he would still need his checkbook to get laid. Trump in 2020!!

Trump Can't Be Racist Because He Donated Money To Kamala Harris, Says Trump CampaignPresident Trump has already gleefully taken to calling Sen. Kamala Harris—Joe Biden’s official 2020 running mate— “nasty” and “mean,” but he must not have thought she was so bad when he donated $6,000 to her re-election campaign.\n And he’s friends with Kanye. You can be racist if you have acknowledged that someone is black. Noticing someone is black is the pinnacle of anti-racism

Trump and Mark Esper's clash over Lebanon comes amid signals the Defense secretary's tenure may be cut shortSpeculation on the fate of Defense Secretary Mark Esper has intensified after a summer filled with clashes. Esper's successor may already be in place. Be sure to look for Esper’s resume on LinkedIn next week. When are appointed Trump Secretary's going to actually do their best, instead of being intimidated into something ridiculous? To sum this up for what seems like the millionth time: Trump lied. Someone told the truth about the lie. Truth teller loses job. 11/20 can not come quick enough. VoteBlueToSaveAmerica