Social security’s actuarial status - the amount that recipients receive in benefits - is calculated by referencing how much money is raised by the FICA payroll tax. For some reason , Trump - in an election year - is acting to lower the amount of that revenue, and calling for making the reductions permanent if he is re-elected. A lot of the seniors who supported him will be unnerved by this, because Unless the funding system is altered by Congress, the FICA tax cut will affect the calcuLatino of the benefits people get - it will lower them.
More from Forbes today:
Tax Holiday
“The payroll tax refers to FICA, which stands for the Federal Insurance Contributions Act, and it has two parts – Social Security and Medicare. Payroll tax is deducted from your paycheck to cover those two social programs.
“For Social Security, you pay 6.2% of your earnings up to what is known as the Social Security wage base. The Social Security wage base is $137,700 for 2020. If you earned $100,000 in 2020, you would pay $6,200 into Social Security.
“For Medicare, you pay 1.45% of your earnings but there is no limit. If you earned $100,000 in 2020, you would pay $1,450 into Medicare.
“A payroll tax cut would mean you keep this money in your paycheck, if you get one. ...
“He would later state that if he was re-elected, he’d “terminate” those taxes. In the past, President Trump has promised to not cut Social Security, Medicare, and Medicaid but this statement seems to indicate that his stance has changed on these social safety net programs.
All very dishonest.
The SS trust fund is 100% filled with IOUs from Congress.
Seriously: 100%. And the Congress will give any IOUs it needs in the future.’
Honestly, I’ll give you links that explain this though it’s of no interest to me anymore. Because you say you know people that don’t understand. I do want those people to have honest info.