The whole exercise troubles some nonpartisan experts, who say the bedrock principle of Social Security is that earmarked payroll taxes from employees and their employers pay for earned benefits for retirees.
“This undermines the dedicated funding, which is the foundation of Social Security,” said William Arnone, CEO of the National Academy of Social Insurance, a nonpartisan public policy organization.
Although the White House says the Treasury Department will guarantee that the Social Security Trust Fund is made whole, Arnone said he’s worried because payroll tax collections have already taken a hit this year in the coronavirus economy.
“The question of the reimbursement of the trust fund is not clearly spelled out ,” said Arnone. “It is a big boost in take-home pay for workers, but what is the long-term cost to them if it makes Social Security less stable?”
Under Trump’s plan, workers making below $104,000 a year would get the tax deferral.
But the president’s directive is…