NEW REPORT: Republican Payroll Tax Plan Would Deplete Social Security Trust Fund in Next Few Years

Social Security Administration Chief Actuary Estimates Trust Fund Reserves “Would Become Permanently Depleted” By 2023, “With No Ability To Pay… Benefits Thereafter”

A new government analysis released today estimates that the unpopular Republican plan to end payroll taxes would immediately endanger funding for Social Security with catastrophic consequences for millions of seniors and hardworking families.

The letter from the Social Security Administration’s Chief Actuary finds that if Republican plans to fully eliminate payroll taxes were enacted next year, the funding for disability insurance would become permanently depleted in the middle of 2021 and the funding for seniors and survivors benefits “would become permanently depleted by the middle of calendar year 2023, with no ability to pay OASI benefits thereafter.”

“If Republicans control Washington next year, their payroll tax scheme would deplete the Social Security Trust Fund reserves in just a few years and could permanently end these hard-earned benefits for seniors after 2023,” said DSCC spokesperson Stewart Boss. “The future of Social Security is at stake in November and it’s yet another reason why we have to flip the Senate.”

The Week: Trump’s payroll tax plan would bust the Social Security Trust Fund by 2023, chief actuary estimates

• A hypothetical estimate from the Chief Actuary of the Social Security Administration certainly won’t allay fears about President Trump’s desire to terminate payroll taxes should he get re-elected.

• In a letter addressed to Sens. Bernie Sanders (I-Vt.), Ron Wyden (D-Ore.), and Chuck Schumer (D-N.Y.), Stephen Goss said that if, hypothetically, payroll taxes were eliminated after Jan. 1, 2021, and there was no alternative source of revenue in place, Social Security’s Disability Insurance Trust Fund “would become permanently depleted in about the middle of the calendar year 2021, with no ability to pay DI benefits thereafter.” The reserves for the Old Age and Survivors Insurance Trust Fund, meanwhile, would last until just 2023.

• So, as things stand, there doesn’t appear to be a solid plan in place to prevent Goss’ hypothesis from playing out if Trump does have the chance to go through with the move in the future.

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