The Villages Chapter of the National Retiree Legislative Network (NRLN) is concerned executive orders to defer from September 1 through December 31 the payroll tax will deplete the Social Security retirement trust fund by 2023, and its disability insurance funding by the middle of 2021.
According to Jim Bodenner “If the Social Security Trust is drained and there is a subsequent recession, then General Tax Revenues will dry up which will create a crisis for a large portion of the 65 million Social Security beneficiaries, destroying Social Security for our children and grandchildren. Bodenner is a member of the Villages Chapter leadership team
A 12.4 percent payroll tax split evenly between employers and workers earning up to $137,700 (for 2020) is a vital funding source for Social Security.
If no alternative source of revenue to replace the payroll tax, the Social Security Administration estimates that Disability Insurance (DI) Trust Fund asset reserves would become permanently depleted in about the middle of calendar year 2021, with no ability to pay DI benefits thereafter. The Old Age and Survivors Insurance (OASI) Trust Fund reserves would become permanently depleted by the middle of calendar year 2023, with no ability to pay OASI benefits thereafter.
Bodenner said the Villages Chapter has endorsed the NRLN’s support for House bill H.R. 860 and Senate bill S. 269, the Social Security 2100 Act.
He said the Social Security 2100 Act comes the closest to the NRLN’s position to make Social Security financially strong for the current generation, our children, grandchildren and great grandchildren by funding the program for the next 75 years. The bill would achieve the funding by a minimal increase of 1.2 percent in the payroll tax for employees and employers on earnings with the annual escalation of a few hundred dollars as it does now. The major difference in funding is that the payroll tax would apply on earnings of $400,000 and above.
For Information Contact:
Jim Bodenner, NRLN Villages Chapter Leader
Phone: 616-866-8180Email: Bodennerj@gmail.com