Deferring the payroll tax or permanently cutting it wont affect Social Security, President Donald Trump told reporters on Aug. 10.
“What were doing is we reimburse through the general fund, not through Social Security. This will have no impact on Social Security,” Trump said before departing Morristown Municipal Airport in New Jersey.
The payroll tax is typically paid by employers with money they withhold from workers. Social Security, which pays money to retirees, is primarily funded through the payroll tax.
Trump ordered Treasury Secretary Steven Mnuchin on Aug. 8 to defer the withholding, deposit, and payment of the tax on most workers wages received from Sept. 1 through Dec. 31.
“If victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax. So Im going to make them all permanent,” he told reporters.
“In other words, Ill extend it beyond the end of the year and terminate the tax,” he said later.
“Right now, we have it cut. Its going to a certain time, as you know. And well take it out until the end of the year, and then Im going to make a decision as to, No. 1, an extension; and, No. 2, making it permanent and no reimbursement,” he said.
Joe Biden, the former vice president and presumptive Democratic presidential nominee, said over the weekend in a statement that Trumps orders put Social Security “at grave risk.”
“Trump announced a payroll tax plan with no protections or guarantees—like the ones the Obama-Biden administration enforced a decade ago—that the Social Security Trust Fund will be made whole,” Biden said.
“And, Trump specifically stated today that if reelected, he plans to undermine the entire financial footing of Social Security.”