A couple of weeks ago, President Trump said that if he was reelected that he would end payroll contributions to Social Security, effectively promising to terminate Social Security, which we reported on August 12. If anyone had a doubt that Trump’s proposal would end Social Security, Jake Johnson reports for Common Dreams that the chief actuary for the Social Security Administration has now confirmed that the President’s proposal would end Social Security.
In fact, Social Security’s chief actuary, Stephen Goss, said that it would take just three years to use up all the money in the Social Security Trust Funds. By 2023, without a payroll tax, both the disability and old-age trust funds would be void of money. There would be no way to pay Social Security benefits once those trust funds ran out of money.
Goss wrote his findings in a letter responding to an inquiry from Senators Chris Van Hollen (D-Md.), Bernie Sanders (I-Vt.), Ron Wyden (D-Ore.), and Senate Minority Chuck Schumer (D-N.Y.). Goss said that the Social Security Disability Trust Fund would be out of money by the middle of 2021 and the Old Age and Survivors Insurance Trust Fund would be out of money by the middle of 2023. These trust funds would be left “with no ability to pay” benefits afterward.
As Goss explains, there is no provision in the Social Security legislation that permits the trust funds to borrow funds in order to pay out benefits. The trust funds only have limited ability to get an advance of payroll tax income for one month.
“The law does not provide authority for the trust funds to borrow in order to pay benefits beyond the limited authority for ‘advance tax transfers…This limited authority allows all payroll tax income expected for a month to be advanced to the beginning of that month if needed to meet benefit obligations on a timely basis. Thus… benefit obligations could not be met after the depletion of the asset reserves and elimination of payroll taxes.”
Goss effectively corroborates the claims of Democrats and Social Security advocates that Donald Trump’s reelection would lead to the destruction of Social Security if he followed through with his plan to end its dedicated funding. Nancy Altman, president of Social Security Works, warned:
“Trump has shown himself willing to undermine the post office, the free press, and other institutions. If he’s reelected, our Social Security system is his next target. Everyone should listen to Social Security’s independent chief actuary and alert your friends and family: If Donald Trump wins reelection, Social Security will be at his mercy.”
Trump is serious about moving forward with ending Social Security if he is reelected. Donald Trump Jr., on the first night of the Republican National Convention, spoke about his dad’s attempt to end the payroll tax using his executive authority, which would be illegal.
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