Aides walk back Trump’s payroll tax cut proposal

If enacted, Social Security would lose its sole source of funding.

By

National News

August 14, 2020 - 4:47 PM

Photo by (Win McNamee/Getty Images/TNS)

WASHINGTON (AP) — President Donald Trump’s push to cut Social Security payroll taxes for the rest of the year — and even arguing for a permanent cut — would do little to bolster the coronavirus-battered economy in the short term and could destabilize long-term funding for benefits that millions of Americans depend on. 

Trump this week said that he could eliminate the tax if he is reelected without undercutting the retirement program or greatly adding to the deficit, arguing that economic growth would offset the revenue losses. 

“At the end of the year, the assumption that I win, I’m going to terminate the payroll tax, which is another thing that some of the great economists would like to see done,” Trump told reporters on Wednesday, adding that “tremendous growth” in the U.S. will cover the costs of Social Security. “We’ll be paying into Social Security through the general fund.” 

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