Fact-checking Trump and Biden’s claims about cutting Social Security

08/20/2020 Business


“Joe Biden has been trying to cut back on social security and Medicare for decades,” claims a recent Trump campaign ad.
The Biden campaign hit back last week with a ad of their own, forgot Trump’s recent executive action to postpone the payroll tax.

“Donald Trump stepped off the golf course and signed an executive action governing Social Security funding schemes,” the ad begins.

Facts first: Both of these claims require context. There is disagreement as to how far Trump’s executive action will reduce funding for social security, and Trump’s claims to pay for his proposed austerity tax through economic growth strike many as unrealistic. Meanwhile, Biden has supported spending on meetings and reduced cost of living and budget protection for Social Security over his long career in the Senate, but his current proposals aim to protect and expand it.

The executive action of Trump

On August 8, Trump signed an executive action to temporarily suspend the payroll tax for many employees. It also opens up the possibility of forgiving the deferred tax along the way.
Critics argue that this would essentially defuse Social Security and Medicare, as they are both primarily funded by the tax. Others say the temporary break will not have a significant effect on social security benefits, as the president alone will not be able to reduce the tax burden, which requires action by Congress.

When asked about the effect this action would have on Social Security trust funds, White House adviser Kellyanne Conway told reporters in a press release on August 11 that the president is still working to protect rights, but did not say how he would do that. Conway also said Trump was more concerned with people currently trying to put an end to meetings, rather than with the longer-term goals of Social Security.

As CNN has reported, many business leaders have argued against Trump’s pressure to defer tax cuts, arguing that workers can owe taxes more than they implement.

Trump’s current plan

In a press release on August 12, Trump described what he would try to do if re-elected.

“At the end of the year, with the assumption that I will win,” Trump said, “I will end the tax break.”

Trump went on to say that social security would be paid for through the General Fund. “It works very nicely,” he said.

The next day, White House press secretary Kayleigh McEnany added confusion, telling reporters that Trump intended “he wants permanent remission of the proposal” instead of eliminating the tax burden permanently. But that’s not what Trump said.

Only Congress can end the tax bill and it’s unclear, with the House controlled by Democrats and the difficulty of rallying Senate Republicans behind such a proposal, how Trump would fare at the end of the tax year.

During the briefing, when pressed by Fox News’ John Roberts for his claim that the general fund would fund Social Security after the tax was eliminated, Trump claimed that strong economic growth would cover the loss of the tax burden.

But with the general fund already having trillions of dollars in debt, coupled with the fact that the IRS brings in more than a third of federal revenue, some see Trump’s belief that economic growth could make up for these losses as fantastic.

Biden’s record

During the primary accused Vermont sen. Bernie Sanders Biden also wanted to cut social security in the past.

Here’s a look at the facts:

Throughout his long political career, Biden has supported many different actions on the justice program, including a temporary safeguard of spending, budget protection and reducing the cost of life-altering.

In 1984, while in the Senate, Biden – in an effort to address budget deficits – co-sponsored a plan to “free up almost all military and domestic spending,” the New York Times reported at the time. Freezing would also cover living expenses adjustment costs for the year.

The proposal was defeated by a vote of 65 to 33.

To that end, in 1973, Biden supported a 7% increase in the monthly benefits of social security, and in 1995 he supported an amendment to prevent cuts in Social Security in any balanced budget legislation.
A year later, in 1996, Biden suggested a number of ways to help prevent future program insolvency, such as increasing the retirement age by one year and reducing the cost of living adjustment by 1%.

Biden’s current proposal

The current plan of the presumptive Democratic nominee aims to protect and expand social security.

The plan includes a “true minimum benefit” for those who have worked for 30 years, and provides them with “a benefit of at least 125% of the poverty level,” says Biden’s campaign website.

According to Market Watch, this could increase social security and social security income benefits by $ 6,500 per year for the poorest retirees. The plan would also “provide a higher benefit to the oldest Americans” and “protect widows and widowers from steep cuts in benefits” among others.
The plan also includes adding the employer / employee combined 12.4% tax rate for Social Security to income above $ 400,000.

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