Every week, we’ll be asking The Seniors Center supporters what they think about the latest Social Security and issues affecting American retirees. Because when it comes to advocating for seniors, the best policy is listening and learning from the REAL experts: YOU.
Your responses will help us understand how seniors truly feel about today’s most important retirement issues. And when you’re finished, be sure to keep an eye out for when we share our results–you just may see your response in our next blog post!
On August 12, the Administration sparked frenzied debate by announcing intentions to terminate the FICA payroll tax that funds Social Security if it’s victorious in the coming election.
Instead of having the FICA payroll tax, Social Security would continue to pay scheduled benefits from the general fund. In other words, Social Security would be moved on-budget, and benefit amounts owed to Social Security beneficiaries would be represented in the total amount of U.S. federal debt (currently, because Social Security is funded by a dedicated tax, it is considered off-budget and does not technically add to the debt).
Opponents of this proposal claim this move would put massive pressure on the U.S. debt, would weaken the security of the program, and constitutes a move from an earned insurance system to a traditional welfare program.
Supporters claim this move would greatly reduce the tax burden on businesses and workers, leading to economic growth that benefits everyone. They also affirm that this move in no way will affect the benefits paid to retirees–they will only be coming from a different funding source.