by
TCCF
in Social Security Posted on
01/04/2022 03:13 PM
The Conservative Caucus Foundation works to safeguard your contributions to Social Security. Our outreach programs bring the results of our research to hundreds of thousands of Americans annually.
TCCF President Peter J. Thomas explains the significance of the deferred collection of payroll taxes. President Defers Collection of Social Security Taxes On August 8, 2020, President Trump issued a presidential memorandum (not an Executive Order), allowing for the deferral of payroll taxes on wages. This may have raised some concerns among our supporters about the impact on Social Security and the extent of presidential power.
Of greater concern is what may action Congress may take. If legislation makes the deferral a permanent cancellation of four months’ taxes, Congress should appropriate general funds to replace what has been canceled. This would be consistent with what was done during the payroll tax cut of the Obama administration. It would make the deferral revenue neutral for Social Security.
However, we should be concerned that Congress might either fail to replace the money, or might count the replacement funds against the Social Security Trust Fund, which would have the same effect. It is vital that any action by Congress be revenue neutral in terms of the Trust Fund.
Concerning executive power, we recognize that the President is acting according to law rather than claiming any inherent executive power. Had the President declared the taxes canceled, he would have gone beyond both the law and his constitutional authority. Instead, he merely deferred the tax collection and recognized that the final disposition can only be made by Congress.
TCCF President, Mr. Peter J. Thomas
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