The Social Security program, which the majority of Americans rely on for retirement and disability benefits, is currently funded by a 12.4 percent payroll tax that is shared between the employer and employee. Trump wants to eliminate the 12.4 percent payroll tax and replace it with a new tax which is similar to a Value Added Tax. The tax money raised by the new tax would be used to fund the Social Security program. The Republicans and Trump will present it as if it is a tax cut - where a worker earning $60,000 a year would take home an additional $3,720 in pay. While that may sound good to the average worker, this kind of tax impacts lower income workers more than higher income workers. Why? Because income earned in excess of $127,200 is not taxed for Social Security benefits. Since middle and lower-income workers use a greater share of their paycheck for daily expenses, they will bear the burden of the the “new” tax.
There is, however, another serious problem with Trump’s proposal. Because the money used to fund the Social Security program will no longer be coming from a worker’s paycheck, it can be argued that the worker is no longer entitled to benefits. In essence, because you are not paying for it, it is not yours. This kind of proposal, if accepted and promoted by Trump, will destroy the Social Security program, which over half of American over age 65 rely on almost exclusively for retirement. The Republicans have longed to eliminate or change the Social Security program and Trump appears to be their ticket to do so. If accepted, this proposal will be carried on the backs of the average working American and negatively affect our future. Further information about Social Security disability benefits and retirement can be found at www.cannondisability.blogspot.com.