fbpx
Connect with us

As I See It

Payroll tax cut a raid on Social Security

Scott Robert Shaw

Published

on

There are plenty of ideas for how to help our struggling economy. The House of Representatives have offered their plan, calling for another round of stimulus checks, and an extension of federal unemployment benefits. The U.S. Senate has yet to approve its own plan, but is so far intent on offering a smaller package than the House. One idea that doesn’t make sense as a way to help those struggling amid the economic downturn, is an elimination of the payroll tax. Getting rid of taxes sounds good, until you consider that the payroll tax is what funds Social Security and Medicaid. President Trump has already suspended the employer portion of the payroll tax for the rest of this year, and has suggested doing away with the tax permanently. But this is a dedicated tax. Currently Social Security is funded by a 12.4% tax that is split evenly between employers and employees. If the tax is ended, Social Security would be funded out of general fund revenue, meaning the money may not be there. That means retiring seniors hoping to rely on Social Security, the money they paid into the system, may find it isn’t available. This idea is no more than a raid on the Social Security system. There are plenty of ideas for helping those economically impacted by the sagging economy, but raiding Social Security should not be one of them.

Scott Robert Shaw serves as WIZM Program Director and News Director, and delivers the morning news on WKTY, Z-93 and 95.7 The Rock. Scott has been at Mid-West Family La Crosse since 1989, and authors Wisconsin's only daily radio editorial, "As I See It" heard on WIZM each weekday morning and afternoon.

Continue Reading
1 Comment

1 Comment

  1. Avatar

    George Caplan

    August 13, 2020 at 6:33 am

    Shaw do you know what a raid is, its when you take something that already exists. Letting people keep their own money is more of a gift. Plus the way social security is set up ,it should be illegal its nothing more than the very definition of a ponzi scheme it 100% relies on new members to pay the benefits of old members .I could work and pay into social security for 100 years if there weren’t any new or current people paying in when I wanted to collect my benefit I would be screwed.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: