On Saturday, August 8, the Democrats and Republicans in Congress could not come to an agreement on what kind of stimulus package to provide to the American people in the wake of COVID19. Due to their wavering, Trump stepped in, as always, seeing an opportunity to, once again, try to buy votes from the American people. He issued four executive orders, which are not yet law although he tries to tell us that they are. I want to focus on one of the four executive orders that should be important to all of us.
Trump cancelled the payroll tax until the end of the year. Supposedly, that is to help working people by giving them a bit more take-home pay. My question to my readers is this. Does this really help you? Particularly in the long-run when you retire? The answer to that, in my opinion, is a resounding no.
You see, the payroll tax is a shortcut way of saying “what you pay in for your share of Social Security and Medicare.” If the payroll tax is cancelled, no one is paying into the Social Security Trust Fund. They are not paying into Medicare. If working people are not paying in, the Trust Fund is not growing, waiting for you when you retire. This is Trump’s first shot at getting rid of Social Security and Medicare, which he and his Republican buddies have always wanted to do. A sneaky way to do it, isn’t it? Especially since the average person may not know what the term “payroll tax” really stands for.
You may say, “Oh, but Social Security will not be there for us when we retire anyway.” Do you know that for certain? No, you don’t. Do you want your parents and grandparents to lose what may be their only, or one of their only, sources of income when they retire or if they are already retired?
Medicare will pay 80% of your medical expenses at retirement. Your grandparents or parents may be on Medicare now if they are over 65 years of age. A program that pays 80% of medical expenses is a valuable program for you in the future and for them now. Trump is threatening the security of what could be the only health insurance you might have and that’s Medicare.
Here’s the kicker. Trump says that, if he is re-elected, he is going to cancel the payroll tax permanently. That will definitely mean the end of Social Security and Medicare. Think about that when you cast your vote in the November Presidential election.
Different (or the same) opinions welcome!